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Chinese Yuan Faces Scrutiny as Global Reserve Currency Ambitions Falter
Chinese Yuan Faces Scrutiny as Global Reserve Currency Ambitions Falter
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BTCCSquare news:
Brad Setser, senior fellow at the Council on Foreign Relations, dismisses the Chinese yuan's potential as a reserve currency, calling it "incredibly weak." Global forex reserves hold just 3% in yuan compared to the dollar's 58% dominance. Market trust remains elusive due to the currency's volatility and China's unconvincing trade mechanisms.
The yuan's trajectory points to sustained depreciation, with only sanctioned economies like Russia and Iran actively promoting its use. Developing nations exhibit reluctance—India and South Africa notably avoid yuan-denominated trade. Beijing's dollar-resentment narrative fails to mask structural weaknesses in its financial strategy.
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