Shift from Chinese Renminbi to US Dollar: Short-Term Trend or Long-Term Change?

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Many countries, including BRICS nations, aimed to increase their exposure to China's currency, the renminbi. However, due to concerns over China's economic outlook, market transparency, and geopolitical risks, a shift towards the US dollar has occurred. Despite the current trend, experts predict this shift to be short-lived as central banks are expected to move back to the renminbi for higher returns in the next few years. While the dollar's presence in FX reserves may diminish over the next decade, China's economy is displaying signs of recovery, and central banks still anticipate an increase in renminbi allocation in the long run.

Shari Redstone has ended talks with Skydance Media over a deal to control Paramount, the number of central banks seeking to increase their exposure to the US dollar has increased sharply this year, the EU plans to put hefty tariffs on Chinese electric vehicles, and the UK Tories' manifesto lays out billions in tax cuts. Plus, the FT’s Christine Murray explains why Mexico's peso slid after president-elect Claudia Sheinbaum proposed reforms.

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Rishi Sunak pledges £17bn in tax cuts to revive Tory election bid

Mexico’s president-elect vows to press ahead with controversial judicial overhaul

Shari Redstone ends talks with Skydance Media over deal to control Paramount

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Read a transcript of this episode on FT.com

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