The Renminbi As A Foreign Currency Reserve

What is driving China’s push to internationalize the renminbi? What steps is Beijing taking to promote its currency abroad?

After the U.S started the Weaponization of the U.S. Dollar & SWIFT, China was forced into looking for ways to make itself less dependant, SWIFT and dollar has given the U.S Government dominance and leverage over other countries.

The renminbi currently makes up a small portion of global transactions. but that could soon change, especially if Iran starts using the renminbi to settle crude oil sales like Saudi Arabia uses the U.S Petrodollar. in the early 1970s, the United States struck a deal with Saudi Arabia to standardize oil prices in dollar terms. China is taking one from the U.S playbook and is striking deals with the world’s largest crude oil producers. China is currently laying the foundation for the eventual rise of the renminbi as a new foreign currency reserve.

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