The US Treasury department weaponised the US dollars and handed China a great win. Yes, with sanctions into and within US dollars, some auxiliary countries like Russia were rattled. The Euro joined the sanction party. But because it does not have the depth the US economy has, the Chinese Yuan has overtaken the Euro in global trade.
The state: “According to the latest data from the International Interbank Payment System (Swift), the Chinese currency has surpassed the euro to become the world’s second largest trade settlement currency. This milestone signifies the growing status of the renminbi in international financial markets and reflects the importance of the Chinese economy in global trade.
“Recently, the People’s Bank of China announced that the exchange rate of the Chinese yuan against the US dollar has reached 6.35, a new high in nearly a decade. This means that the international purchasing power and influence of the Chinese yuan is also increasing, even surpassing the euro to become the second largest international currency after the US dollar.”
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In the Igbo Nation, the elders will say that when you hold a child on the ground, you are also holding yourself since when you leave the child, the child will rise up. So, the only way to keep him or her down is to keep holding him/her on the ground. Indeed, why score an own-goal when the world uses your currency, by telling them NOT to use it? You will hurt them, but you will also hurt yourself.
That was why I protested when Nigeria closed its land borders thinking it was punishing those countries without knowing that it was accelerating deindustrialization in Nigeria. During the border closure, Nigeria experienced one of the largest deindustrialization phases in the last 23 years. Why? Most producers in Nigeria focus on those countries, and when we closed the borders, they closed shops!
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