13 Nations Ditch the Dollar—China’s Yuan Goes Global in Quiet Financial Coup

Move over, greenback—the yuan’s making moves. From Moscow to Buenos Aires, a baker’s dozen of countries are quietly cutting USD transactions in favor of China’s currency. No big announcements, just the steady clink of de-dollarization.

Why it matters: When central banks start stockpiling yuan instead of T-bills, it’s not just a currency play—it’s geopolitical chess. And Washington’s too busy debating debt ceilings to notice the board’s being reset.

The kicker? Half these nations still denounce ’currency manipulation’ at G20 summits. Nothing personal, just business—the kind where you diversify away from the guy printing trillions.

De-Dollarization: A New Use Case for Chinese Yuan Is Here

13 major economies, including ASEAN, South Korea, China, and Japan, have now found a new use case for the Chinese Yuan. This new usage includes a new emergency funding tool that makes use of the Chinese Yuan as the leading currency for funding emergencies for other nations.

This new rapid financing scheme is called Chiang Mai Initiative Multilateralization (CMIM), a currency swap system established between China. South Korea, Japan, and ASEAN nations. The CMIM was born out of the Asian financial crisis of 1990, under which countries could avail emergency financial funds if they were battling balance of payment issues or short-term liquidity crises.

Earlier, these emergency funds were often swapped in US dollars, considering the weight and mettle that the currency emanated as a reserve asset. However, in a recent CMIM meeting held in Milan, Italy, a new decision has been made where these emergency payouts WOULD now be delivered in Chinese yuan, giving USD a major setback. This development also adds fuel to the rising de-dollarization narratives, weakening the American currency further.

In a new CMIM announcement, a joint statement was released. The statement solidified the usage of Chinese Yuan and other regional currencies as leading financial lending tools for the CMIM system.

What Does It Mean for the Chinese Currency?

Analysts at Standard Chartered Bank have heralded the MOVE as relatively positive for the yuan’s internationalization.

. O.”Said Ding Shuang, chief Greater China economist at Standard Chartered Bank.

China’s central bank governor, Pan Gongsheng, also shared his stance on the inclusion of the Yuan in the CMIM scheme.