China Chinese Yuan will take a more prominent role in international trade

I recently watched a YouTube video from TLDR, a Western channel, discussing the possibility of multiple countries transitioning from using the US dollar to the Chinese yuan as their primary currency for trade.

The commentator in the video stated that this scenario is unlikely, citing previous predictions made over the last 15 years that failed to come to fruition.

However, I respectfully disagree with the commentator. There have been several significant developments in recent times that could pave the way for a shift towards the CNY, including:

a) A growing number of countries have already agreed to use the CNY in their trade transactions.

b) China and Russia have started trading exclusively in the CNY rather than the USD.

c) Oil producers in the Middle East have begun selling their oil in CNY.

d) Many countries are now trading with China using CNY, thanks to the implementation of swap arrangements.

These developments have not occurred in previous years, which leads me to believe that this time, things may be different.

It's important to note that the US dollar will not be entirely replaced. However, its share of international trade and as a reserve currency may significantly decrease, although this could take several years to come to fruition.

Tan Kin Lian
 

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