The Liechtenstein-based Geopolitical Intelligence Services published on 21 August 2023 an analysis titled "Prospects for the Yuan Unseating the Dollar" by Junhua Zhang.
The recent BRICS summit in South Africa gave rise to renewed discussion of replacing the US dollar with another global reserve currency such as the Chinese yuan. During the first quarter of 2023, 59 percent of the world's foreign exchange reserves were held in dollars and 20 percent in Euros. Only 3 percent were held in Chinese yuan.
The BRICS (Brazil, Russia, India, China, and South Africa) agreed in Johannesburg to add 6 more countries (Argentina, Egypt, Ethiopia, Iran, Saudi Arabia, and the UAE) on 1 January 2024, resulting in 3 African members in the 11 member organization. While China has made significant progress in strengthening the yuan's status, it will not soon become the dominant global reserve currency. The yuan's progress in this regard will depend on the stable growth of the Chinese economy.
