5 Countries That Use the Chinese Yuan a Lot, What Does It Mean for the US Dollar?

JAKARTA – China continue to send a strong message to make the use of yuan abroad a top priority in the face of US dollar hegemony.

This push has involved efforts to increase the yuan’s appeal as an alternative in international trade and as a reserve currency.

As a result, China has seen increased use of its currency in trade financing, international payments, foreign exchange transactions and central bank reserve assets.

In recent times, more and more countries have been dumping their US bonds, increasing their gold reserves and settling bilateral trade in local currencies.

According to SCMP, in March 2023, the yuan became the most widely used currency for cross-border transactions in China, overtaking the US dollar for the first time.

The following countries use the yuan extensively in trade transactions including oil and gas;

1. Russia

The conflict with Ukraine has forced Moscow to adopt wider use of the yuan as Washington-led restrictions have limited its access to US dollars.