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China Pushes Yuan as BRICS Reserve Currency, Faces Resistance
China is advancing efforts to position the yuan as the reserve currency of BRICS, challenging the dominance of the U.S. dollar. However, resistance from fellow BRICS members threatens to stall Beijing’s ambitions.
China’s Push for the Yuan
Beijing has steadily promoted the yuan for trade, cross-border payments, and central bank reserves, especially during the 2023 and 2024 BRICS summits.
Russia and Brazil have increasingly settled oil and commodity trades in yuan, largely due to U.S. sanctions on Moscow.
India briefly used yuan for settlements but later stopped.
Through the New Development Bank (NDB), China has also encouraged lending in yuan, with countries such as Pakistan, Sri Lanka, and several African nations receiving loans denominated in the currency.
These moves, though not officially branded as a “reserve currency initiative,” underscore China’s intent to reduce reliance on the U.S. dollar and elevate the yuan’s global role.
Growing Resistance Inside BRICS
Despite Beijing’s push, divisions within BRICS remain clear:
India and South Africa have consistently opposed making the yuan the bloc’s reserve currency.
Brazil has recently joined their stance, signaling concern over China’s dominance.
Instead, these nations favor a multicurrency system—a basket of local currencies that can collectively compete with the U.S. dollar, rather than relying on one nation’s currency.
Why It Matters
The internal split highlights a key challenge for BRICS: while members agree on reducing dependence on the dollar, they do not agree on letting the yuan replace it.
Without consensus, China’s vision of a yuan-centered BRICS reserve faces significant hurdles, leaving the bloc’s true de-dollarization strategy still in flux.
@ Newshounds News™
Source: Watcher.Guru
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