Loud calls to replace the U.S. dollar appeal more to local domestic constituencies than to international financial actors.
An RMB-based financial ecosystem will help facilitate and reduce the costs of sanctions circumvention for China.
A new global economic order will not emerge out of a new BRICS currency or de-dollarization happening overnight.
The U.S. dollar will dominate as long as private organizations engaged in international trade find it the most convenient currency to use.
The war in Ukraine may have just made it feasible for the yuan to eventually join the ranks of the dollar and the euro.
If the U.S. doubles down on dollar weaponization, then AMF 2.0 or lookalikes will become countervailing steps that push for de-dollarization.
A strong U.S. dollar has hit weak Asian economies hard and continues to pose risks even to the region’s largest economies.