Financial Times: the war between the yuan and the dollar will lead to a change in world hegemon

The British newspaper Financial Times warns of the coming change of the currency hegemon in the world. Ill-conceived external policy Washington, according to the author of the publication, leads to the strengthening of the yuan as the new world reserve currency. The publication reports that the Chinese currency for the first time ousted the euro on world currency exchanges and became the second in the world in terms of the number of transactions.

Western experts have always scoffed at this, but Putin's open decision to use the yuan in trade and the increasing activity of other countries clearly show that a multipolar monetary world is coming. The new hegemony shift front is about to become a war between the yuan and the dollar

says the Financial Times.

The author of the publication in the British newspaper forgot to mention that not only Russia has chosen the yuan as the currency for international trade. This week China and Brazil signed an agreement on trade in yuan. Representatives of both countries expressed their desire to exclude the US currency from bilateral trade, which exceeds $150 billion.

On March 30, the first deal in yuan between China and a European buyer was recorded. The French oil giant Total paid in Chinese currency for the supply of LNG, which was supplied by China from the UAE. The emirates, following Saudi Arabia, are also in the process of moving towards trading in yuan.
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  1. Jacques sekavar (Jacques Sekavar) 31 March 2023 16: 51
    The problem is the limited conversion of the renminbi, which means the possible manipulation of rates, which the US not without reason accused the PRC, and related trade restrictions. The dollar is also a dollar in Africa, and not every seller will accept the renminbi, as well as the widely publicized transition to national currencies, even in contrast to which the renminbi is a reserve currency and is included in the SDR basket.
    The PRC cannot let the national mark float freely, this is the main deterrent to replacing the dollar with the renminbi, but the world's largest economy, global political and economic projects, the world's largest sales market and purchasing power take their toll, and therefore the Chinese currency for the first time replaced the euro on world currency exchanges and became the second in the world in terms of the number of transactions. This is the first sign, on the front of the adventurous policy of the Fed CJSC, prospects and expectations play against the dollar and its world domination, but based on the economic potential of the United States, the dollar will remain in the top three world currencies along with the euro and the renminbi, and therefore there is no way to abandon the dollar in the gold reserves grounds, the only question is US policy and the Fed's restrictions, but these are variable factors - they are formed, the economy will force
    1. In passing Online In passing
      In passing (Galina Rožkova) 31 March 2023 19: 09
      For anyone, it's good that there is not only the dollar and the euro in the world. You might think that these do not have exchange rate fluctuations and artificial regulation, like the yuan. The point is in the volume of transactions in these currencies, in the volume of the economy itself. Many people don't like the dictates of the USA, but so far the dollar is convenient.
    2. Denisimo Offline Denisimo
      Denisimo (Denis) April 1 2023 09: 06
      It will take time for the world market to adapt to the renminbi. And the greater the volume of transactions will be concluded in it, the faster this will happen. Believe me, with such dynamics of entry into international settlements, in 4-5 years, transactions made in yuan will no longer surprise anyone. The dollar will most likely remain for settlements between countries that are members of the American bloc and the EU. This again, taking into account how the states will cope with the current financial crisis, which threatens to become the strongest in the entire history of America. Somehow, the mattress covers have been very tricky, overestimating their own strengths .. Not everything in the market is regulated by newspaper stuffing.
    3. Fizik13 Offline Fizik13
      Fizik13 (Alexey) April 1 2023 13: 20
      Quote: Jacques Sekavar
      He is a dollar and a dollar in Africa,

      The same thing happened with the British pound.
      BUT why shouldn't the Yuan become a world currency, because all bloggers want here and now. After all, the British pound did not immediately disappear, and the dollar did not immediately rise.
      The Americans will put spokes in the wheels in every possible way, but this is only a matter of time, even Trump will not help.