China ‘goes global yuan’ to defend against weapon dollar, says Bloomberg – 5/4/2023 – Nelson de Sá

In the wake of the Financial Times, Bloomberg also began to take seriously the risk to the hegemony of the US currency, in special reports such as “China turns the global Yuan into a bet to repel a dollar turned into a weapon” (with the illustration below).

The Chinese-American antagonism that now ranges “from Taiwan to TikTok” and financial sanctions against Russia “did more to promote the yuan in the last year than the Xi Jinping government accomplished in the previous decade”.

“If the US wants to rock the boat, China will make the necessary changes,” says Victor Gao of Soochow University and the Center for China and Globalization think tank in Beijing.

Bloomberg also hears from Adrian Zuercher of UBS Global Wealth Management that Beijing “is working to demonstrate that there is a world outside the US and the West” and sending a message to Washington: “We don’t need you and we don’t need your dollar”.

Amundi’s Esther Law says she expects “the yuan to continue its rise in popularity amid fears of US-led sanctions and as a practical part of China’s growing role” as a source of international credit.

In the same vein, days earlier in Reuters, “Chinese small steps in the external use of the yuan are starting to take shape”. And at Caixin, “China is making more inroads to popularize the yuan”.

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