(Bloomberg) — China’s top banking watchdog cautioned that U.S. dollar dominance combined with the massive stimulus unleashed by the Federal Reserve could push the world to the edge of another financial crisis.
In a rare act of public criticism, China Banking Regulatory Commission Chairman Guo Shuqing also lashed out at developed nations seeking to divert blame from their own failures to contain the virus outbreak and moves by the U.S. to blacklist Chinese companies and entities.
“In an international monetary system dominated by the U.S. dollar, the unprecedented, unlimited quantitative easing policy of the U.S. actually consumes the creditworthiness of the dollar and erodes the foundation of global financial stability,” Guo wrote in an article published in the Communist Party’s Qiushi magazine on Sunday. “The world may once again be pushed to the verge of a global financial crisis.”
Saudi Arabia is willing to consider funding itself in Chinese yuan, a senior Riyadh official said last week as the global oil markets are witnessing a rise of China and its currency.
The remarks made by Saudi’s Vice Minister of Economy and Planning Mohammed al-Tuwaijri raised the possibility of the renminbi entering the oil kingdom’s market.