Further China support for Russia – wants to erode dominance of USD

In summary:

  • Some Chinese advisers are urging the government to overhaul the exchange rate regime and turn the yuan into an anchor currency, especially for the Asia region
  • Worries are mounting that China could be kicked out of the Swift financial messaging system or cut off from its foreign assets if relations with the US worsen

If you can access the article at the SCMP its an interesting read. From time-to-time there is a flurry of opinion on how the USD is declining and will be replaced by some other reserve or reserve currencies. Its usually very ill-informed opinion. This article is unlikely to herald a new era of yuan international dominance but its an interesting read, and reasoning out of China, nonetheless.

I posted this on the DXY last week, the death of the US dollar has been greatly exaggerated:

dxy 18 May 2022
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