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China's Concurrent Gradual Strategy of De-Dollarization and Internationalization of the Yuan
Abstract
When the United States froze the reserves of the Russian Central Bank following Moscow's invasion of Ukraine in February 2022, it raised concerns in China. Previously, Washington had used the dollar as a weapon against countries such as Iran, Venezuela, and Cuba. This “weaponization” of the dollar and manipulation of it for domestic economic purposes by the US seems to have prompted China to reduce its vulnerability to it. There is ample data showing that China has taken several measures to mitigate the risks associated with the U.S. dollar. This chapter examines the various measures taken by China toward de-dollarization and internalization of the Yuan simultaneously and its prospects. The research is conducted in a descriptive-analytical manner, based on data from library and internet sources.
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