11:34 - 15.09.2025

---

September 15, Fineko/abc.az. The Chinese leadership believes that a historic chance is near.

ABC.AZ informs that the unstable trade policy of U.S. President Donald Trump, the huge budget deficit and threats aimed at the independence of the Federal Reserve System can seriously weaken the dollar's position.

Since January, the value of the US dollar has fallen by 7% in line with trading figures, which is considered the worst start since 1973. In contrast, China's highly regulated currency, the yuan, peaked in November after Trump's re-election. Foreign investors are also paying attention to this. Like many governments, they are looking for an alternative to the US dollar.

This interest is not new. The same can be said about China's desire to internationalize the yuan. The first steps were taken in 2009, which led to loosening of capital flow controls. But the stock market crash and the devaluation of the national currency in 2015 caused massive outflow of capital. This again caused tight controls and halted the international expansion of the yuan. This time, officials sought both to make steady progress and to maintain strict control over capital flows.

Chinese leaders believe that the adoption of the yuan worldwide will protect exporters from the volatility of the dollar exchange rate and reduce the risk of US financial sanctions. Some officials hope that foreign companies and investors will ignore strict government controls and even accept the yuan as an investment instrument. In recent years, progress in this direction has been noticeable: the share of the yuan in invoices and external lending has increased, and development of financial infrastructure that is not pegged to the dollar has attracted attention. However, now foreign investors need stronger incentives to choose the yuan.