China Does Not Have the Capacity To Dethrone the Dollar
China is aggressively pushing the Chinese yuan for bilateral trade to dethrone the US dollar in global trade. It kick-started the motive after the Russian invasion of Ukraine and is pursuing the de-dollarization agenda for several trade policies. The Chinese yuan currently accounts for 3% of the global reserves after pushing it for bilateral trade. On the contrary, the US dollar foreign exchange reserves stand at 57.80%, according to the latest US dollar data from the International Monetary Fund (IMF). Also Read: EAUE Shuns USD, Settles $112 Billion in National Currencies China Cannot Dethrone the US Dollar, Says Analyst Source: Reuters / Getty Images Analyst Zongyuan Zoe Liu, a senior at the Council on Foreign Relations (CFR), explained that China cannot dethrone the dollar. She stressed that Chinese policymakers are wary of the situation, as lessons from previous currencies that tried to challenge the USD failed. The Chinese yuan will meet the same fate as internationalizing a curren...