Yuan Under Pressure: Chinese Investors Brace for Currency Dip Amid De-Dollarization Slowdown

China's yuan faces mounting pressure as domestic investors anticipate a slide—throwing cold water on Beijing's de-dollarization ambitions.

The slowdown comes as global markets question whether the yuan can truly challenge the dollar's dominance. Analysts point to capital outflows and shaky economic data as key factors weighing on sentiment.

Meanwhile, crypto traders eye the volatility as a potential hedge opportunity—because nothing says 'stable store of value' like betting against central banks.

Yuan Gains Against The US Dollar

Chinese investors expect the yuan to hold steady against the US dollar for now before facing a dip. Even more, People’s Bank of China (PBOC) is in a dilemma. A sudden movement of the yuan could lead to businesses and households selling billions of dollars. The move could be motivated by opportunities “.”

Such a development could stress China’s de-dollarization motives. The country has spearheaded the move away from the greenback over the last decade.

The yuan has gained 1.5% against the US dollar since April 2 of this year. The development coincides with the beginning of President Trump’s tariff spree. The tariffs seem to have led to a dip in confidence in US policymaking. In a surprising development, the US dollar’s “safe haven” label seems to be weakening.

According to Lynn Song, chief economist for Greater China at ING, ““

While there is a growing de-dollarization sentiment globally, the movement away from the dollar seems far-fetched. Despite being brushed off as illogical, the growing US debt has added further fuel to the de-dollarization fire.