Commentary

US sanctions are paving the way for the yuan to rival the dollar

By weaponising its currency against Russia, the US has set up the beginning of the end of the petrodollar monopoly

If other global powers start backing the yuan, China's ascent could be striking
If other global powers start backing the yuan, China's ascent could be striking Photo: Getty Images

Jason Hsu is chief investment officer at Rayliant Global Advisors

Since the early days of Russia’s invasion of Ukraine, it has been clear that the choice to weaponise the US dollar would have consequences. Sanctions on Russia’s access to US currency are paving the way for the ascent of the yuan, China’s currency, as an alternative for clearance, settlement and reserves — at least, for countries willing to upset the US.

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