Reuters assessed the growing role of the yuan in the international payments industry. The publication believes that the Chinese currency is slowly but surely heading towards the displacement of the US dollar.
If this trend continues, it will lead to the creation of a trading system parallel to the current one, now dominated by the US currency. According to analysts, gradual progress towards the creation of a new architecture has been sketched out and is gaining momentum. Especially in the context of Russia’s exclusion from most Western payment systems.
Analysts polled by the publication admit that a group of the world’s biggest importers and exporters can replace the dollar with the yuan. While the Chinese currency will not replace the US globally, the yuan is already replacing the dollar in some sectors of the economy. This applies to areas where China dominates as an importer or exporter.
This process will help Beijing achieve its goals of reducing China’s exposure to exchange rate fluctuations and reducing potential damage to the Chinese economy if the United States imposes sanctions on Beijing.
says the agency.
Earlier, the British newspaper Financial Times warned of the coming change in monetary hegemony in the world. Washington’s ill-conceived foreign policy, according to the author of the publication, leads to the strengthening of the yuan as the new world reserve currency.
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