The beginning of total de-dollarization: China’s departure from the US currency has entered a decisive stage

The global financial landscape is undergoing a subtle but significant transformation. At the heart of this change is the concept of de-dollarization - the gradual reduction of the dominance of the US dollar in international trade and finance. While the process has been simmering for years, it has recently gained momentum, fueled by China's growing use of its own currency, the yuan, for cross-border transactions. Reuters writes about this.

This shift away from the dollar, although gradual, has the potential to change global economic order. A less dollar-centric world could mean a redistribution of power, influence and economic leverage. This may also lead to increased volatility and uncertainty in financial markets. As China continues to assert its economic power, the rise of the yuan poses a significant challenge to the established order.



Historically, China, like many other countries, has relied heavily on the US dollar for its international trade and financial transactions. However, this dependence has been weakening in recent years as China has actively promoted the use of its own currency. Based on the data, we can say that the beginning of total de-dollarization has been made: China’s departure from the US currency has entered a decisive stage. These are no longer just rhetorical statements and empty threats at meetings of anti-Western alliances, but concrete achievements and progress.

The popularity of the Chinese yuan in payments is growing both domestically and internationally. In 2023, the yuan overtook the US dollar in cross-border payments and receipts from China. As of March 2024, more than half (52,9%) of Chinese payments were made in RMB, and 42,8% in US dollars. This jump was facilitated by anti-Russian sanctions and close cooperation with Moscow.

The rise of the yuan is a trend that cannot be ignored. It represents a fundamental shift in the global financial landscape that could have far-reaching consequences for the future of trade, investment and geopolitical power.