Has China Actually Succeeded in Dumping the US Dollar? The 2025 Reality Check
Geopolitical Shockwaves: Beijing's Dollar Diversification Strategy Reaches Critical Mass
The Digital Yuan Gambit
China's central bank digital currency accelerates cross-border settlements—slashing dollar dependency without firing a single shot. Petro-yuan contracts now bypass greenback clearinghouses entirely.
Commodity Markets Flip the Script
From Saudi oil to Brazilian iron ore, settlement in renminbi hits record volumes. Treasury holdings? Strategically trimmed to 2009 levels while gold reserves quietly double.
The Belt and Road Multilateral Trap
Infrastructure loans in local currencies create de facto yuan zones across Eurasia. Dollar hegemony faces its first credible structural challenge since Bretton Woods.
Wall Street still pockets fees on both sides of the trade—because some habits die harder than reserve currencies.
US Dollar vs Chinese Yuan: Did China Succeed in Its De-Dollarization Ambition?
The answer is no. China has not succeeded in dumping the US dollar, as the greenback still remains king of the markets. However, it has reduced the number of trades in the USD by increasing the usage of the yuan.
Where China Has Made Progress
Where the US Dollar Still Dominates
1. Investment & SAFE Haven: The yuan isn’t widely trusted as a safe reserve currency like the dollar.
2. Global Reserves: The US dollar still makes up 58% of global foreign exchange reserves, while the yuan is only 3%.
3. International Settlements: Over 80% of all global trade is still cleared in the US dollar, and the numbers are rarely dipping.
