Dollar’s supremacy got the biggest blow from Yuan! There will be trade between Argentina and China in Yuan!

Dollar Versus Yuan: The supremacy of the world’s most powerful currency, the US dollar, has suffered a major setback. And this blow has been given by the Latin American country Argentina, which has decided that it will pay in Chinese currency Yuan for the imports made by China. This will help in increasing the acceptability of Chinese currency yuan.

The government of Argentina is saying behind this decision that it wants to save its dollar reserve. But the reality is that China is negotiating with many countries to do bilateral trade in Yuan. In the month of April, Argentina has decided to pay one billion dollars of Chinese imports in yuan. After this, the import of 790 million dollars every month will be paid in yuan only. Last year, Argentina decided to swap currency worth $5 billion to strengthen its foreign exchange reserves.

Earlier in March 2023, during Chinese President Xi Jinping’s visit to Russia, Russian President Vladimir Putin had said that Russia would trade with Asian, African and Latin American countries in the Chinese currency Yuan. Settlement should be done. The Central Banks of Russia and China are now keeping less dollar foreign exchange reserves and doing transactions in Yuan. Russia and China feel that America and its powerful currency dollar can be given the biggest challenge and America’s economic power can be hurt.

Saudi Arabia, the largest oil producing country, has approved to accept Yuan as currency for selling oil to China. Along with this, it has also been decided to fix the prices of crude oil in yuan, which till now has been done in dollar. India has also bought crude oil from Russia by paying currency other than dollar.

If the dollar continues to suffer a setback like this, it will be the biggest setback in the history of America because America has been using the dollar as its biggest weapon against the whole world. America occupies 20 percent of the world’s output. 60 percent of the foreign exchange reserves kept in global central banks are in dollars, although 20 years ago it used to be 70 percent. International trade is also done through dollars only. The dollar gives America its greatest power on the global political and economic stage. America can impose economic sanctions on any country and can isolate that country economically in the world.

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