Arming with the local currency is no less powerful and necessary than arming with the military arsenal. Beijing is racing against time to implement this principle, weaving a network of countries that deal with it in the Chinese yuan as a shield against potential US sanctions strikes.
Two experts who spoke to “Sky News Arabia” agreed that the yuan has become a source of more confidence than the dollar for many countries of the world, the most recent of which was Argentina, which announced a few days ago the use of local currencies in exchange with China.
The two speakers monitor the gains that countries expect from using the yuan, as well as what hinders its reaching the same level with the dollar soon.
For more than 10 years, Beijing has been reducing its dependence on the dollar, driven by the risks arising from the link with the US economy, and it appeared in the global financial meltdown in 2008, according to a report by the newspaper, “The Guardian”.
In recent months, Beijing has accelerated its steps, after it followed the gathering of NATO countries in Russia’s “era” of sanctions, after the outbreak of the 2022 Ukraine war, taking advantage of the connection of its activities with the financial system in the United States and Europe.
China’s motivation to separate its economy from the dollar increased after the emergence of the Taiwan crisis on the line, and the possibility of a clash with Washington, followed by the imposition of sanctions on it as well.
Recently, there have been agreements between China and several countries to exchange trade in local currency, including India, Brazil, Russia and Argentina.
Last March, a Chinese company used the yuan to buy 65,000 tons of LNG from a French multinational, the first time the yuan was used in an international LNG deal.
At the same time, he points out that the tendency of several countries to use the yuan is an acknowledgment that China has become a “reliable economic and political force,” expecting that this will be a great support for China in the event of a conflict in Taiwan and the imposition of sanctions on it.
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