Editorial | China well placed to take advantage of the shift away from the US dollar

Beijing is not looking to replace the US dollar. Instead, it wants to prepare the yuan as a hedge and counterweight to limit the leverage Washington has amassed over the global financial system. As more countries fret about Trump’s erratic policies and their faith in the US currency is shaken, Beijing needs to prepare for the yuan’s rise. Hong Kong, as the premier yuan hub, will be a big beneficiary. Less than 2 per cent of global reserves are held in yuan, contrasted with 57 per cent for the US dollar and 20 per cent for the euro, so displacement…