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investopedia.com
Cross-Currency Swap: Definition, How It Works, Uses, and Example
A cross-currency swap is an agreement between two parties to exchange interest payments and principal denominated in two different currencies. These types of swaps are often utilized by large companies with international operations.
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China is pushing to reduce global reliance on the US dollar by expanding the use of the yuan in international trade. Efforts include growing bilateral currency swap agreements, developing a cross-border interbank payment system to compete with SWIFT, and encouraging oil and energy trade to be settled in yuan. Countries are moving away from the dollar due to rising US debt, declining purchasing power, and growing concerns over financial weaponization. The use of sanctions and threats to restrict
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