Will Yuan Replace US Dollar? Trump Sounds Alarm

Summary

  • Former US President Donald Trump voiced his concerns that the Chinese yuan could potentially displace the US dollar as the world’s top currency.
  • Several nations are currently steering away from the US dollar, and China has already dethroned it to become the most traded currency in Russia.
  • The wider community disagrees with Trump’s opinion and points out that the yuan only accounts for just over 2% of global reserves.

Will Yuan Dethrone The US Dollar?

Former US President Donald Trump has taken to his social media platform, Truth, to express his growing concerns about the state of the US dollar. In a recent statement, Trump stated that he believes the Chinese yuan could potentially displace the US dollar as the world’s top currency. He added that this catastrophe will „probably“ happen during Biden’s presidency and would be considered one of America’s greatest defeats in its history.

Nations Steering Away From The USD

It is true that several nations are currently steering away from using or relying on the US dollar. Recently, Malaysian Prime Minister suggested there is no reason to continue depending on it. China has also dethroned it to become the most traded currency in Russia, and even ASEAN nations are considering dropping out from using it for settlements.

Factors Affecting The USD

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Trump’s worries may not be unfounded at all since three congressmen recently proposed a “Gold Standard” bill which demands to re-peg their currency to a fixed weight of gold bullion. This type of action was taken due to Washington’s irresponsible spending habits and creation of money out of thin air. If this bill were passed then it would help their currency regain a stronger hold against other currencies such as Chinese yuan and euro.

Community Disagrees With Trump

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The wider community seems to disagree with Trump’s opinion by pointing out that yuan only accounts for just over 2%of global reserves while UDS accounts for around 60% of all foreign exchange reserves making them still have an edge against other currencies for now.

< h2 >Conclusion>
In conclusion, although certain nations have started moving away from UDS as their primary form of settlement we can see they still have an edge when compared with other currencies such as Chinese yuan and euro but if these bills proposed by congressmen get approved then we may soon see more countries joining in on moving away from UDS