The UAE is considering moving away from the US dollar to the Chinese yuan amid rising regional tensions and economic instability, challenging traditional alliances.
The EUR absolutelly is - the EU is a big stable open economy with large Financial Markets a freely trading currency and deep Treasuries markets.
It’s not by chance that over the last 2 decades mainly the EUR has taken a bigger and bigger slice of foreign exchange reserves away from the USD, with by 2025 the EUR being roughly 1/3 the amount of USD reserves (see here).
(That said, looking at that data, the EUR and USD foreign currency reserves have barelly moved since 2017)
Agree on the RNB not being ready - China’s currency isn’t freely traded and neither are their treasuries, and access to mainland Financial Markets is highly restricted. That’s reflected on the above mentioned foreign exchange reserves where the RNB is but 1/10 of the EUR reserves.
The EUR absolutelly is - the EU is a big stable open economy with large Financial Markets a freely trading currency and deep Treasuries markets.
It’s not by chance that over the last 2 decades mainly the EUR has taken a bigger and bigger slice of foreign exchange reserves away from the USD, with by 2025 the EUR being roughly 1/3 the amount of USD reserves (see here).
(That said, looking at that data, the EUR and USD foreign currency reserves have barelly moved since 2017)
Agree on the RNB not being ready - China’s currency isn’t freely traded and neither are their treasuries, and access to mainland Financial Markets is highly restricted. That’s reflected on the above mentioned foreign exchange reserves where the RNB is but 1/10 of the EUR reserves.