CNI News
21 July 2023
Chinese Yuan is gradually influencing the world and Russia, Argentina, Brazil, Iraq have accepted Yuan for Chinese imports.
So, there are reviews among economic analysts and businesspeople in relation to questions whether the Chinese Yuan has been able to compete with the US Dollar, the world's reserve currency.
Several countries are performing to reduce using the US Dollar due to the current US's economic situation and debts. Moreover, because the US has imposed economic sanctions on some other countries, the countries are replacing USD with Chinese Yuan, said U Ye Tun, a political analyst to CNI News.
" Dollar surely will be replaced gradually because of the American economic situation and American enormous debt. When the US imposed sanctions on other countries taking advantage of the fact that its money is the world's reserve currency, the countries felt insecure. That's why, even Greek started thinking about replacing USD. When thinking about replacing USD, some countries use not only Yuan but also other currencies according to their necessity.For example, Because Bangladesh largely trades with India, it uses Rupee instead of USD. Because our country trades with China the most, we have started using Yuan instead of USD, I think" he said.
100 Yuan note, the most valuable bank note in the Chinese currency
At present, Yuan is second most used after USD and although most of the countries have not agreed to replace USD with Yuan, countries will increasingly use Yuan if they increase trade with China.
Most of the countries have reduced USD from their reserve currency.
Yuan is used in 49 countries at present and Yuan probably will be a main currency in the future, said U Thet Zaw, an economic analyst to CNI.
" To the best of my knowledge, 49 countries have used Yuan. They are trying to mainly use Yuan. Later, countries will use Yuan mainly, I think. It will be the main currency, I expect. As a country that has been imposed sanctions, it is unlikely to depend on USD only. Payments must be performed through different connections between USD and Kyat, Rupee and Kyat, Baht and Kyat and so on. As MOGE (Myanma Oil and Gas Enterprise) also has been imposed sanctions, its money must be changed." he said.
Although Myanmar is carrying out a reduction using USD, it is in need of USD at present because it has to pay by USD when it pays international debts and when it buys weapons and fuel from abroad.
Large financial organizations such as Citigroup and Goldman Sachs have estimated that Yuan will be used third most for international payment in 2030. Moreover, Yuan has been traded most in Russia since the Eukareine War started.
Russia accepted Yuan when it sold crude oil to India and Bangladesh decided to pay Russia by Yuan for its nuclear plant. Saudi Arabia also accepted when it sold crude oil to China, reported in international media.
