Friday, November 6, 2020

Nikkei Asia - China's Yuan Nowhere Near Cracking US Dollar Hegemony

This article in Nikkei Asia is an update on the ongoing efforts by China to disrupt the current monetary system dominated by the US dollar. Basically it just continues to confirm what we have reported here on this blog for some time. Below are a couple of excerpts from the article. 


"Yet for all Beijing's ambitions of cracking the hegemony of the U.S. dollar in the face of Trump administration sanctions, the yuan still has a long way to go. While this week's meeting of the Communist Party Central Committee looks likely to take up the cause of yuan internationalization, the currency will not be taking the greenback's place on the world scene any time soon."

. . . . . . 

"Far more must be done for the yuan to really displace the dollar. A fully open capital account remains a key prerequisite. These days, 2030 seems to be China's new target for achieving that, with the previous goal of 2020 fading from memory."

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