China has been making strategic moves to shield its currency against sanctions imposed by the United States and other countries. The country has been diversifying its foreign exchange reserves and promoting the use of its own currency, the yuan, in international trade.
One of the key strategies that China has been using is to reduce its reliance on the US dollar. The country has been increasing its holdings of other currencies, such as the euro and the Japanese yen, to reduce its exposure to the US dollar. This move is aimed at reducing the impact of US sanctions on China’s economy.
Another strategy that China has been using is to promote the use of the yuan in international trade. The country has been encouraging its trading partners to use the yuan instead of the US dollar in their transactions. This move is aimed at reducing the dominance of the US dollar in international trade and increasing the use of the yuan.
China has also been promoting the use of its own payment system, the Cross-Border Interbank Payment System (CIPS), which allows for the direct exchange of yuan with other currencies. This move is aimed at reducing the reliance on the US-dominated SWIFT payment system.
China’s currency strategy is aimed at reducing its vulnerability to US sanctions and increasing its economic power. The country’s efforts to diversify its foreign exchange reserves and promote the use of the yuan in international trade are likely to continue in the coming years. As China’s economy continues to grow, its currency is likely to become more important in the global economy.