More Countries Opt to RMB Settlement, Will USD Be Replaced?

WikiFX News (27 June) -As more and more countries announce the initiation of RMB settlement business, the status of the US dollar is in jeopardy.

According to the latest data of the World Bank Interbank Financial Telecommunications Association (SWIFT), the share of RMB international payments has risen to 1.79% in May, and the internationalization of the RMB is continuously deepening.

Up to June 22, the size of the US national debt has reached 26.24 trillion US dollars. Some analysts pointed out that the rapid growth of US Treasury bonds will have an impact on the fiscal budget, thereby exacerbating the financial crisis. Whether the United States can correctly deal with the negative impact of these factors on the economy will determine whether the dollar can pass the test.

Under the advantage of the US dollar, the US exchange rate risk is very low, and it is also possible to purchase cheap goods from other countries by printing money. However, former US Treasury Secretary Henry Paulson pointed out recently that the status of the US dollar is being tested.

Paulson said that considering that the US economy has fallen into relative decline, and emerging market countries such as China are on the rise. It currently appears that “RMB is the currency most likely to replace the US dollar.”

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