The dollar still remains the main currency in trading operations on the world market. However, the yuan continues to gain strength to get rid of the US currency, Report informs referring to The Economist.
“Every so often an appetite surges for an alternative reserve currency to the dollar - and a market booms in predictions of the greenback’s imminent demise. Yet the doubters’ excitement has become detached from reality. The greenback exerts an almighty gravitational pull on the world economy that has not materially weakened - even if America has recently found that there are real obstacles to exploiting its currency’s pre-eminence.”
“Though Russia’s war economy has been wounded by sanctions, it has not been crippled, in part because 16% of its exports are now paid for in yuan, up from almost none before it invaded Ukraine.
China’s alternative to the SWIFT interbank-messaging system has been growing rapidly. It has also been switching more of its bilateral trade towards settlement in renminbi - an easier task than replacing the dollar in trade flows between other countries. Although a shift to a multipolar system of currencies is not imminent, it could occur later this century as America’s share of the world economy shrinks. Such a system would be inherently less stable than one centered on the dollar - so it would be in the interests of neither America nor the world to hasten the shift.”