Chinese Yuan Surpasses US Dollar on Global Market

The Chinese Yuan is rising powerfully, surpassing the US Dollar to become the dominant global currency, especially in the Russian market.

Azcnews (1)

The race for supremacy in the global monetary system is becoming more fierce than ever, with the rise of the Chinese yuan, which is currently valued higher than the US dollar. This currency is gradually asserting its position, especially through international and central trading activities in Russia, a sign that it may soon overthrow the dollar.

The predominance of the yuan in Russia

According to information from Reuters, the yuan has surpassed the dollar to become the main currency in transactions in Russia. The latest figures point to a major shift: 42% of foreign exchange transactions in Russia now involve yuan, compared with 35% of dollar transactions.

This advancement is evidence of a strong transformation of the yuan, reflecting Russia’s need to avoid harsh sanctions from the US. Sanctions have isolated Russia from many international financial markets, accelerating a shift toward China’s currency for international trade and investment.

Russia is expected to triple the amount of transactions in yuan, reaching a new record of 385 billion USD by 2023. This is a move to reduce dependence on traditional financial channels, which are currently being blocked. limited sanctions, to maintain and grow the national economy through other means.

Dxy Chart
Dxy Chart

Global currency trends

Global currency intervention activities and trends are becoming more exciting. In Asia, countries are trying to maintain their positions under pressure from the US dollar. Countries such as South Korea, Thailand and Poland are closely monitoring fluctuations in their national currencies and do not hesitate to intervene to ensure stability. Meanwhile, Indonesia has decided to sell a large amount of US dollars to strengthen the value of its currency.

Related: Bitcoin Recovers to $65K Amid Market Volatility

The situation becomes even more complicated when the latest economic reports from the US indicate that the inflation rate is higher than expected, which could cause the Federal Reserve (Fed) to delay its plan to reduce interest rates. This helps the dollar continue to maintain its strength, making it difficult for emerging markets to manage their currencies.

In addition, escalating tensions in the Middle East between Israel and Iran also caused many investors to seek safety in the dollar. This has contributed to the weakening of emerging market currencies in 2024. According to data from Bloomberg on April 12, 2024, currencies such as the Mexican Peso and Colombian Peso have seen a decline compared to dollars, with declines ranging from 0.2% to 8%.

image 53

Source: Bloomberg

Marcella Chow, a strategist at JPMorgan, pointed out that central banks have frequently intervened to stabilize their currencies. Ms. Chow shared in an interview with Bloomberg TV that there was a lot of verbal intervention from different central banks. She emphasized that with the Fed’s current policy, Asian currencies will likely continue to struggle and require additional strong intervention measures.

The dynamism in global central bank operations is a direct response to the Fed’s policy of maintaining higher interest rates for longer than expected. This causes market traders to readjust expectations about the possibility of US interest rate cuts, especially in the context of persistent inflation, leaving emerging markets having to navigate through a period of financial uncertainty this is ok.


(2 votes)

Leave a Reply

Your email address will not be published. Required fields are marked *


What Are Ai Projects Top 5 Ai Investment Projects To Consider In 2024

AI | Altcoin | Editor Choice | research | Research

What are AI Projects? Top 5 AI Investment Projects to Consider in 2024

AI - an area that has become familiar and essential in our daily lives. AI is also widely applied in the cryptocurrency market through the emergence of numerous significant AI projects. So, what are AI projects? Which are the top 5 notable AI projects? Let's find out together!

What Is Depin Azc

Editor Choice | Research | research

What is DePIN? Top 5 Notable DePIN Projects in 2024

DePIN - a trend that many cryptocurrency projects have been developing recently. So, what is DePIN? What are the top 5 notable DePIN projects in 2024? Let's find out together!

Azcoiner Partners With U2u Network

Altcoin | Editor Choice | News

AZcoiner Partners with U2U Network: Integrates U2U Network and Participates in U2U Airdrop Event

AZCoiner has announced that it has integrated U2U Chain into its ecosystem. This is a major step for both parties to soon become leading platforms in the cryptocurrency field.

Azcnews Market Plummets As Mt.gox Moves $2.9 Billion Worth Of Bitcoin

News | Bitcoin | Editor Choice

Market Plummets as Mt.Gox Moves $2.9 Billion Worth of Bitcoin

The bankrupt cryptocurrency exchange Mt.Gox has transferred billions of dollars' worth of Bitcoin from cold wallets to unidentified addresses, heightening market participants' anxiety.

Memecoin Floki Launches Trading Bot, Price Immediately Rises Azc

Altcoin | Editor Choice

Memecoin Floki Launches Trading Bot, Price Immediately Rises

The developers of the memecoin Floki have launched a trading bot on Telegram with the aim of increasing demand for the FLOKI token, thereby boosting its price in the future.