Dollar Hegemony Is Under Fire From China’s Rapid Growth Recovery
- Citi says the yuan could touch strongest in almost 30 years
- China sees record capital inflows into stock and bond markets
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China’s light-speed recovery from the pandemic has reignited the perennial debate about how long the dollar’s 50-year dominance of global markets can persist.
The U.S.’s struggle to control the coronavirus and revive its economy contrasts sharply with the Asian nation, where growth has roared back. That divergence -- which saw the greenback’s worst performance since 2017 as the yuan advanced -- has bolstered China’s tilt at dollar hegemony, with investors flocking to onshore assets, trying out the renminbi for trade, and even giving it another look as a reserve currency.