De-Dollarization: The yuan is not yet re • Table.Briefings

A departure from the US dollar as a trade currency is one of the topics being pushed at the BRICS summit, especially by China. Indeed, the yuan has made progress as a trading currency. However, it cannot take over the role as a reserve currency – it lacks the necessary free tradability.

Those who own the world’s reserve currency have enormous advantages. The US, for instance, can take on unlimited debt because there is unlimited demand for dollars. This means that they can also sustain a trade deficit of any size.

De-Dollarization: The yuan is not yet ready

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