8 Nations Opt For Chinese Yuan Amid De-Dollarization

The de-dollarization agenda is now gaining worldwide traction as the US dollar keeps displaying significant price volatility. The regular fluctuations encountered by the American currency are leading the world to explore capable alternatives to the US dollar, with a special focus shifting towards currencies such as the euro and Chinese yuan. This development is gaining momentum due to the fiery trade policies that US President Donald Trump has initiated in recent times. The rising trade war fears, coupled with the nations putting counter tariffs on the US, pushed investors to dump the US dollar, adopting alternatives like the yuan to perform cross-border transactions.

Also Read: Goldman Bets $1.4B on Blackrock’s Bitcoin ETF: 516 Trillion SHIB Set to Be Hit

De-Dollarization Gains Steam: What’s Happening

The financial market is now getting ready to embrace a new change. This change is marked with the rise of the multipolar currency world, where other currencies are giving stiff competition to the US dollar. While the de-dollarization narratives have also existed in hindsight, these agendas are now gaining rapid popularity, especially now that President Donald Trump’s aggressive trade policies continue to batter established trade routes and mechanisms.

The US continues to impose fresh tariffs on nations, prompting them to rummage for alternatives. At the same time, these nations have also been putting active tariffs on the US, giving rise to a phenomenon dubbed the trade war. These fears are negatively impacting the US dollar, which is encountering sharp fluctuations in its valuation as of late.

“Both institutional investors and central banks are having to begin to think. About what would happen should the dollar and the Treasury market no longer be the safe haven.” Said Joe Brusuelas, chief economist at the consulting firm RSM.

Furthermore, the dollar’s dominance in the currency world is also wobbly, as its rapidly declining stance is weakening consumer interest in the currency.

“My thesis is that the U.S. dollar is about to get knocked down a couple pegs.” Said Rogoff, a professor of economics and the Maurits C. Boas Chair of International Economics. “It will still be first in global finance, because nothing is poised to fully replace it. The dollar just won’t be as unique as it once was.”

Also Read: Global Financial Authority IIF Endorses XRP as Swift Alternative for Payments

Which Nations Are Using Chinese Yuan?

With the world losing interest in the US dollar, the investor sentiment seems to be shifting towards alternative currencies like the Chinese Yuan.

Per SCMP, the yuan is rapidly rising on the world radar, emerging as the second most used currency after the US dollar. These 8 nations have also started to use the Chinese yuan, limiting the usage of the US dollar in the process. This development has prompted de-dollarization to take rapid hold amid rising pressure.