China Seeks to Boost Yuan's Global Clout, Eyes Requiring Belt and Road Loan Repayments in Chinese Currency
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China launched the Belt and Road Initiative (BRI) in 2013 to finance infrastructure projects in 155 developing countries through loans.
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China may soon require BRI loan recipients to repay loans in Chinese yuan instead of US dollars to boost yuan internationalization.
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This could diminish the dominance of the US dollar in global trade if the 155 BRI countries switch to yuan for loan repayments.
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China is waiting for the digital yuan to launch before making yuan the default currency for BRI loans and repayments.
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Using BRI to boost yuan usage coincides with broader BRICS efforts to undermine dollar dominance in global finance and trade.