Commentary
With the International Monetary Fund (IMF) now allowing countries to pay dollar-denominated debt in the Chinese yuan, what does that mean for the U.S. dollar?
It’s no secret that both the Chinese and the Russians and many other countries want to downgrade the dollar’s influence and even de-dollarize global trade. That’s certainly happening, and in more ways than many realize.
In fact, despite what some economists and other experts might assert to the contrary, the end of the dollar’s reign in world trade and finance is in sight.
Those who say otherwise insist that Chinese currency markets are neither big enough nor possess the liquidity levels and lack the capital market openness needed to replace the U.S. dollar in the global financial system—they have a point. On that score, they’re correct….