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:

UK Chancellor Sunak reported in financial media, said to have instructed his staff to prepare plans for a possible windfall tax on more than £10bn of excess profits by electricity generators

• Prior 91.8; revised to 91.9
• Expectations 86.9 vs 85.8 expected
• Prior 86.7; revised to 86.8
• Current assessment 99.5
• Prior 97.2; revised to 97.3

Considering the circumstances, those are some decent readings as it reaffirms added resilience in the German economy despite inflation and supply chain bottlenecks as headwinds. This will be a bit of comfort but let’s see what the PMI readings tomorrow have to offer to be certain of how economic developments are going to proceed in Q2.