U.S. Dollar to Remain Dominant Despite RMB Internationalization
China, United States
In recent months, a growing chorus of analysts has argued that the U.S. dollar’s dominance is waning, with China’s renminbi (RMB) emerging as the leading replacement.
Other analysts, however, take a more circumspect view. They concede that some countries are moving to use currencies other than the USD for trade and reserves purposes, but doubt that the RMB will systemically replace the dollar anytime in the foreseeable future. The Asia Group assesses that most evidence supports this view.
China and Russia are clearly motivated to ramp up RMB use to settle trade transactions because of the U.S.-led sanctions against Moscow. Those sanctions have frozen much of Russia’s foreign currency reserves and removed major Russian banks from SWIFT, which facilitates most international banking transactions.
“It has absolutely missed the best timing for an IPO,” said Jin Lu, senior vice president of The Asia Group ...
Scroll to Top
You Are Applying For:
U.S. Dollar to Remain Dominant Despite RMB Internationalization
Apply Now
Submit the details below, and our HR team member will get in touch with you shortly.
The Asia Group is an equal opportunity employer where an applicant’s qualifications are considered without regard to race, color, religion, sex, national origin, age, disability, veteran status, genetic information, sexual orientation, gender identity or expression, or any other basis prohibited by law. The Asia Group continually seeks to diversify its staff, particularly to broaden opportunities for individuals from demographic groups that are historically underrepresented in the strategic advisory profession.
Media
Commentary
U.S. Dollar to Remain Dominant Despite RMB Internationalization
In recent months, a growing chorus of analysts has argued that the U.S. dollar’s dominance is waning, with China’s renminbi (RMB) emerging as the leading replacement.
Other analysts, however, take a more circumspect view. They concede that some countries are moving to use currencies other than the USD for trade and reserves purposes, but doubt that the RMB will systemically replace the dollar anytime in the foreseeable future. The Asia Group assesses that most evidence supports this view.
China and Russia are clearly motivated to ramp up RMB use to settle trade transactions because of the U.S.-led sanctions against Moscow. Those sanctions have frozen much of Russia’s foreign currency reserves and removed major Russian banks from SWIFT, which facilitates most international banking transactions.
Listen on:
Related Posts
Han Lin in The Wall Street Journal: China’s Overcapacity Challenge Takes Center Stage at the G20
Han Lin to AFP: Shein’s Hong Kong IPO Falls Short of the Hype
Han Lin on CNBC: China Takes Center Stage at the SCO Summit in Kyrgyzstan
Jin Lu in CNN on Shein’s Long-Awaited Market Debut in Hong Kong