China Wants a Global Yuan. U.S. Sanctions Are Paving the Way.


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Text size About the author: Jason Hsu is chief investment officer at Rayliant Global Advisors. Since the early days of Russia’s invasion of Ukraine, it’s been clear that the choice to weaponize the U.S. dollar would have consequences. Sanctions on Russia’s access to U.S. 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 U.S. This has been a gift from heaven for China’s leader, Xi Jinping. Historical context will show how Xi may view this issue. Mao Zedong was the great...