via dailywire:
Developing countries are seeking to reduce their dependence on the American dollar as the global reserve currency, some of which are instead turning to the Chinese yuan as the communist nation fosters a growing role for itself in the international economy.
The dollar has maintained dominance as the world’s reserve currency, held in significant quantities by central banks and foreign corporations in order to settle international trade and financial transactions, in the eight decades since the end of World War II. The dollar has strengthened over the past several years against other prominent currencies, such as the Japanese yen and the British pound, as other nations struggle to recover from the lockdown-induced recession and surmount resultant economic obstacles.
Leaders in several emerging market economies have renewed proposals to lessen reliance on the dollar as the Russian invasion of Ukraine challenges the international balance of power. Malaysia proposed the creation of an Asian Monetary Fund with the backing of China, while the United Arab Emirates and India discussed agreements to trade certain commodities in rupees and Saudi Arabia announced an openness to trading in currencies other than the dollar as the kingdom attempts to strengthen relations with China. Brazil and Argentina have likewise discussed the creation of a currency union to reduce reliance on the dollar.
Macron: Reduce Dependence on Dollar After Meeting With Xi
Amid reports that some countries are “de-dollarizing,” French President Emanuel Macron suggested in a new interview that Europe should reduce its dependency on the United States.
There is a “great risk” that Europe “gets caught up in crises that are not ours, which prevents it from building its strategic autonomy,” he told Politico this weekend as he flew on an airplane from Beijing to Guangzhou in China after meeting with Chinese leader Xi Jinping. Xi and the Chinese Communist Party (CCP) have backed Macron’s “strategic autonomy” concept as CCP officials often refer to it when meeting with other European officials.
“The paradox would be that, overcome with panic, we believe we are just America’s followers,” Macron said in the interview. “The question Europeans need to answer … is it in our interest to accelerate [a crisis] on Taiwan? No. The worse thing would be to think that we Europeans must become followers on this topic and take our cue from the U.S. agenda and a Chinese overreaction,” he said.