The Rise and Impact of Chinese Yuan

Abstract

This article discusses the recent surge of the Chinese Yuan rivaling against the US dollar. Even though, the US dollar has been unchallenged in dominating the global stage as the world’s primary currency for many years; the rapid growth of the Chinese Yuan has sparked an international rivalry, that will, certainly, impact the future of the global economy. As China’s impact and influence on the global economic stage continues to tremendously increase, the Yuan, simultaneously, becomes more powerful. We are already seeing the effects of this; such as, the change in the policies of BRICS nations, (regarding Russia’s current global economic situation). Furthermore, this rivalry also has massive effects on ASEAN nations, such as Thailand. If ASEAN nations decide to adapt the Chinese Yuan as their central currency, then it would definitely strengthen their relations with China. However, the decision these countries have to make regarding the Yuan-Dollar conflict is incredibly difficult; Because some countries are also currently dependent on the US dollar (such as, Thailand, who uses the dollar as their foreign reserve). This makes third-party countries deciding on which superpower to support very wary. Due to, being stuck in a paradox; no matter which side they choose it contradicts the other, and most countries, especially in Asia are dependent on both the US and China. In conclusion, the immense increase in the strength of China’s economic power is starting to rival that of the US. On the other hand, the US dollar has recently been weak and unstable, the United States, is still a global superpower. The conflict between these two superpowers has pressured other countries into a conundrum, supporting either side comes with both positive and negative consequences.