BRICS member China is making strategic moves to curb the US dollar’s rise. Chinese investors sell a record $5.1 billion in US stocks in August 2023, possibly to protect the Yuan’s value.
China, a prominent BRICS member, is employing various tactics to counter the dominance of the US dollar and the ascent of American stocks. In August 2023, Chinese investors, both institutional and governmental, collectively unloaded a staggering $5.1 billion worth of US stocks, as data reveals. This significant sell-off aligns with China’s broader strategy to safeguard the value of the Chinese Yuan. It’s not a standalone move; during the same month, China parted ways with $21.2 billion in US treasuries and stocks to prevent the dollar from gaining more ground. This aligns with BRICS’ collective effort, with the alliance witnessing a combined $123 billion sell-off in US government bonds and treasuries this year. China, in particular, is spearheading BRICS’ pursuit to reduce the US dollar’s supremacy globally.
The escalating pattern of China’s actions raises questions about the potential emergence of the Chinese Yuan as a global currency. This speculation is further fueled by China’s status as the top buyer of gold in 2023, a significant move in the global financial landscape.
