The Economist reports: “China is ditching the dollar, fast”.
Over 30% of China’s trade in goods & services is now done in its own currency, RMB.
China settles over 50% of its total cross-border receipts (including financial flows) in yuan, up from less than 1% in 2010.
I think the actual goal is to simply move trade outside the dollar system entirely. China is doubling down on bilateral swaps and using CIPS to establish financial systems completely outside western control. The value of the dollar relative to yuan is not that important because global financial system itself is bifurcating between BRICS and G7.
As the US continues to push for increasingly more extractive trade arrangements, counties outside the west will continue to shift trade away from the US and as a result they no longer need to hold the dollar.