This will show the concern of the West that countries around the world are increasing the share of China’s currency Yuan in their reserve currency. This poses a threat to the dominance of the dollar.
After Russia’s attack on Ukraine, the sanctions imposed by the US and Western countries on Russia, they are facing the reverse effect. Inflation and lack of fuel have troubled residents of the entire western world. Its long-term economic damage is now being estimated. There are also possibilities of political upheaval. Meanwhile, this thing will also worry Western strategists that central banks around the world are increasing the share of China’s currency yuan in their reserve currency. This is posing a threat to the dominance of the US currency dollar in international trade. This was stated by UBS Asset Management Company in its latest annual report. This company releases currency reserves management survey report every year. According to its latest report, 85 percent of central banks said that they have either invested in Yuvan, or are seriously considering doing so.
This number was 81 percent last year. Central banks are looking to take Yuvan’s share of its reserves to an average of 5.8 per cent over the next ten years. This will be a huge increase compared to the current level. The International Monetary Fund reported last week that Yuvan currently accounts for an average of 2.9 percent of central banks’ reserves. In fact, the way Western countries confiscated Russia’s foreign currency after the start of the Ukraine war, has reduced the trust of various countries in the dollar. So now they are planning to invest in different currencies. This figure is also significant. The share of the dollar in the foreign exchange reserves of the 30 major countries surveyed by UBS was 63 percent in June. In June of 2021, this share was 69 percent. Clearly the Ukraine war has changed the whole face of it. Due to the strong economic growth recorded in China in recent years, China is emerging as an alternative to America in the economic field. That is why the discussion of a multi-polar world has now started.
