Can the renminbi beat the dollar for currency supremacy?

China’s planned launch of an international payment system to process cross-border yuan transactions in September will challenge the US dollar’s dominance in global trade and help Beijing build a leading role in Asian and global financial markets.

The greenback’s dominance in global trade and financial markets has begun to weaken because of the currency’s co-dependence with US military power, which is seeing structural changes.

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American military power also ensures security at home and creates a safe environment that attracts foreign investment in US assets and bonds and a desire to hold the US dollar, which is accepted in most parts of the world.