Will the dollar be dethroned by the yuan? Not in the near term
SCMP Opinion
23-05-22 16:30
The US dollar remains expensive, despite the Fed's interest rate pause in May and possible cuts later this year, according to David Chao, a global market strategist for Invesco. Chao argues that the yuan is the clear challenger to dethrone the US dollar, as past challengers, the Japanese yen and euro, never managed to do so due to the US continuing to outcompete both economies from a macro perspective. Recent events suggest major developing economies are eager to shift away from the US dollar, such as Russia and China trading gas in yuan and roubles.