Chinese Yuan Overtakes US Dollar in Many Parts of the World

The US dollar has been the world’s primary currency for international trade since the second world war, but that is changing and China is moving into a more dominant role on the world stage.

The unforeseen impact of the war in Ukraine has been the sanctions forcing Russia to move its trade currency to China’s Yuan and Russia is not the only one. Five nations, including Russia, Argentina, Bangladesh, Brazil, and Iran have now started to do their trade in Renminbi. It should be noted that Russia, Brazil, and Iran have some of the highest levels of oil reserves in the world.

This five-way partnership is joined by a growing list of countries in Africa that have already been using the Chinese currency.

In July 2022, China made a big move when the People’s Bank of China announced a collaboration with the five nations of Indonesia, Malaysia, Hong Kong, Singapore, and Chile accounting for $2.2 billion in Renminbi trade.

Even one of the world’s most populous countries, India, has now also moved to start settling their trade with Russia in the Chinese currency.

Also, for the first time ever, the yuan became the most widely-used currency for cross-border transactions in China in March of this year, overtaking the dollar.

As China’s currency influence grows, so too does the influence of the Chinese Communist Party.  As BTJ missionaries go from nation to nation, their currency is becoming more of a standard staple than ever before.

 

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