It is a matter of fact that in recent years, many major world economies have stopped reinvesting their current account surpluses precisely in US government bonds and are rather starting to buy physical gold to a greater extent. China, for instance. The demand for US government bonds is therefore very likely to be significantly weaker now than it was 10 or 20 years ago, which can also be seen in the fact that the share of dollar foreign exchange reserves from an overall global perspective has been steadily declining in recent years. At the same time, it is one of the manifestations of the so-called dedollarization. Another manifestation of dedollarization is observed within the international payment system in international trade, primarily in developing economies that are gradually switching from the dollar to local regional currencies, especially the Chinese yuan.

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What economies have switched to yuan? They don't have open capital markets, so that would be quite stupid. Many failing economies have in turn switched to usd (dollarization). Zimbabwe, Venezuela for example. Argentina is de facto dollarized.

Here are official reserves. The proportion of usd is not going down much. These include claims in different currencies. Renmibi is definitely not going up, the total amount of reserves is going down as an absolute number.

https://data.imf.org/?sk=e6a5f467-c14b-4aa8-9f6d-5a09ec4e62a4

Here's devaluation of currencies against usd. If you want foreign reserves, would you hold renmibi or usd?

I am not a super fan of usd (Bitcoin and gold for the win), but let's be realistic. What are real alternatives for central banks? Especially usable on international markets as collateral.

https://nostrcheck.me/media/public/nostrcheck.me_9485108349053656351687201357.webp