A growing number of countries are opting to diversify settlement currencies, stepping away from only using the "US-weaponized" dollar, or ditching it altogether in favor of the yuan, the increasingly internationalized currency of China – a top trading partner of more than 140 countries.
If Beijing abandons the US dollar in trade settlements, the United States will be faced with "stark" consequences, a Chinese news outlet has warned.
Underscoring that a "new trade order is emerging," the report highlighted the global trend of de-dollarization as paving the way for China's currency - the yuan.
As the People’s Republic of China boasts the status of one of the world's largest trading countries, if Washington opts to "decouple" from China, this might set off a domino effect, with increasingly more countries preferring to trade with China using the yuan as an exchange currency, it was noted.
“We are for de-risking and diversifying, not looking to decouple,” US National Security Advisor Jake Sullivan said at the Brookings Institution in late April, in reference to China’s economy.
However, the report underlined that imports of consumer goods by the US plunged 20.6 percent year-on-year in the first three months of this year. If the decline trend continues, it will, in turn, "accelerate the global de-dollarization trend," warned the publication. Meanwhile, the share of the yuan - also referred to as the renminbi - in the Republic of China's cross-border payments shot up to 48 percent in March, data cited by the report showed. READ MORE...
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