Little by little, without haste and without stopping, but with the patience of the Chinese, this great Asian nation is turning into what everyone knows will happen one day: a global superpower. It has proven to be a goal-oriented society.
He accomplished feats that placed his civilization at the pinnacle of human achievement. From the Great Wall of China to the feat of being the first to put a robot on the far side of the moon, with plans to send men to Mars, China stands as the nation of the possible.
Its acquisition of space or weight in the global economy was also the key piece that prompted the United Nations to withdraw its support for Taiwan as the true representative of the Chinese people in the 1970s. Today, China is by far the largest automobile manufacturer in the world. .
Its importance as a player in the global economy also places its currency, the yuan, in a prominent position. In fact, more and more countries are using it for transactions, which in turn translates into greater impact. The sanctions imposed on Russia due to its invasion of Ukraine prompted China to pay in rubles, and vice versa. Like India, which pays China in yuan.
Although the US dollar is still very much the global reference currency, time does not stop and the Chinese have shown that their patience has no end either. Little by little, even if only in summits (from China to China), China is moving away from US hegemony. It’s far away, as I said, but time is unforgiving.
Note that according to the international SWIFT system, the yuan has surpassed the euro for the first time in history as the second most important currency in global trade. Available data indicate that Chinese funds increased their participation from 4.82% in August to 5.8% in September in international payments.
As everyone knows, the dollar is still at the top. It is not easy for it to lose its superiority, especially since the United States economy has a way of influencing the decisions of other countries that are also powers. The participation rate in September was 84.15%, compared to 83.95% in August. We are talking about international payments via SWIFT.
Although it is essentially a currency with greater status than the Chinese currency, and in fact, it is stronger, the euro ranks third in terms of international payments. It rose from 6.43% in August to 5.43% in September. I repeat: China is exploiting the sanctions imposed on Russia to enhance its presence in international trade.
India, which overthrew China a few years ago as the most populous country, began paying for Russian oil in yuan, and this alone is enough to change global trade calculations.
This is data that clearly proves that there are other currencies that are not only gaining space in international transactions, but can generate confidence and stimulate other types of decisions in the markets.
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