The global shift away from the US dollar continues to gain momentum within BRICS trade, with a significant pivot toward the Chinese renminbi. As China strengthens its economic ties with Russia, its currency is rapidly becoming a preferred choice in international transactions, signaling a bold move towards de-dollarization.
Recent data reveals that in July, over half (53%) of China's cross-border transactions were conducted in renminbi, a significant rise from 40% just two years ago. This shift is a clear indicator of China's strategic push to reduce dependency on the US dollar. It’s no wonder the Federal Reserve is scrambling to stabilize the dollar amidst a challenging high-interest-rate environment.
At the same time, it's fascinating to observe how the U.S. is doubling down on its efforts to dollarize countries like Argentina and expand its influence through dollar-denominated stablecoins in other regions. These are two opposing forces at play, and it remains to be seen how they will ultimately balance out in the global economy.