China’s rapid post-pandemic growth threatens dollar hegemony
“The U.S.’s struggle to control the coronavirus and revive its economy contrasts sharply with the Asian nation, where growth has roared back. That divergence — which saw the greenback’s worst performance since 2017 as the yuan advanced — has bolstered China’s tilt at dollar hegemony, with investors flocking to onshore assets, trying out the renminbi for trade, and even giving it another look as a reserve currency.”
USAGOLD note: The importance of recent trade agreements between China and Europe and the rest of Asia should not be underplayed as important factors in advancing China’s ambition to make the redback a worthy competitor to the greenback for reserve purposes.
Repost from 1-11-2021