It sounds like you're already aware of this, but since there was a lot of speculation about the Yuan earlier:
Note that while the chart Bloomberg used makes it look like the Yuan is poised to take over from the dollar, it's not. It's gone up... to 2.69%. This is how the currencies stacked up in Q4 2022 according to the IMF[0]:
* the US dollar (58.36%)
* the Euro (20.47%)
* the Yen (5.51%)
* the Pound (4.95%)
* the sum of all currencies not in the top 8 (3.45%)
* the Yuan/Renmibi (2.69%)
* the Canadian dollar (2.38%)
* the Australian dollar (1.96%)
* the Swiss franc (0.26%)
So it's not that the Yuan is becoming the world reserve currency, it's that countries are avoiding relying on a single reserve currency. The lesson from the Ukraine sanctions wasn't to avoid the dollar, it was that relying too much on any outside country's currency puts your sovereignty at risk, so they're diversifying.
If you look at the chart in the link below, the gains from the dollar's loss are spread out pretty evenly.
The figure is clear. There is NOTHING even comes close to replace $ in terms of volume. Remeber, also took US Dollar a long time to replace the Pound as the reserve currency.
Whenever country like Japan stops using dollar to settle oil purchase, it is another step. With currently development around the multi-polar world, it is likely not one single currency, rather several regional block reserve currencies will arise to replace the Dollar.
Note that while the chart Bloomberg used makes it look like the Yuan is poised to take over from the dollar, it's not. It's gone up... to 2.69%. This is how the currencies stacked up in Q4 2022 according to the IMF[0]:
* the US dollar (58.36%)
* the Euro (20.47%)
* the Yen (5.51%)
* the Pound (4.95%)
* the sum of all currencies not in the top 8 (3.45%)
* the Yuan/Renmibi (2.69%)
* the Canadian dollar (2.38%)
* the Australian dollar (1.96%)
* the Swiss franc (0.26%)
So it's not that the Yuan is becoming the world reserve currency, it's that countries are avoiding relying on a single reserve currency. The lesson from the Ukraine sanctions wasn't to avoid the dollar, it was that relying too much on any outside country's currency puts your sovereignty at risk, so they're diversifying.
If you look at the chart in the link below, the gains from the dollar's loss are spread out pretty evenly.
[0] https://data.imf.org/?sk=c22e624f-ce09-4c9e-a70b-647defa5215...