Advancing global de-dollarization, China’s central bank is boosting its gold reserves while signing currency swap deals in yuan with countries like Argentina, encouraging the use of renminbi instead of US dollars.
by Ben Norton
Part 1
China’s central bank has taken a series of steps to accelerate the global drive toward de-dollarization, challenging the hegemony of the greenback.
The People’s Bank of China is increasing the share of gold in its foreign-exchange reserves, bucking the US dollar, which has for decades been dominant in international central bank holdings.
This January, China also signed an agreement with Argentina’s central bank for a currency swap deal, in which Beijing will provide 130 billion Chinese yuan (roughly $19 billion USD) to help Buenos Aires stabilize its currency and economy.
The South American nation said it is “committed to deepen the use of the RMB [renminbi] in the Argentine market for bilateral exchange”. (Renminbi is the official name for the Chinese currency, also known as the yuan.)
The People’s Bank of China is increasing the share of gold in its foreign-exchange reserves, bucking the US dollar, which has for decades been dominant in international central bank holdings.
This January, China also signed an agreement with Argentina’s central bank for a currency swap deal, in which Beijing will provide 130 billion Chinese yuan (roughly $19 billion USD) to help Buenos Aires stabilize its currency and economy.
The South American nation said it is “committed to deepen the use of the RMB [renminbi] in the Argentine market for bilateral exchange”. (Renminbi is the official name for the Chinese currency, also known as the yuan.)
These moves show how China is responding to the new cold war that the United States is waging against it.
Concerned that the aggressive sanctions that Washington has already imposed could expand into an all-out economic war, Beijing is decreasing its holdings of dollars in reserves and encouraging the use of its currency in trade with other nations – thereby chipping away at the global reserve currency.
Meanwhile, Russia’s central bank has pledged to buy yuan in the foreign-exchange market to hold in its reserves. And Beijing is already purchasing oil from Moscow in its national currency.
Concerned that the aggressive sanctions that Washington has already imposed could expand into an all-out economic war, Beijing is decreasing its holdings of dollars in reserves and encouraging the use of its currency in trade with other nations – thereby chipping away at the global reserve currency.
Meanwhile, Russia’s central bank has pledged to buy yuan in the foreign-exchange market to hold in its reserves. And Beijing is already purchasing oil from Moscow in its national currency.
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