Since China has become the largest customer for oil producers in the Middle East, the international environment has steered toward internationalization of the yuan.
Since Donald Trump became US president in January 2017, the dollar has been weakening. The US' move toward protectionism and anti-globalization has caused anger around the world and undermined confidence in the dollar among international investors. This represents an opportunity for the yuan.
Theoretically, trade policies have no direct causal relationship with short-term exchange rates. But the trend of the dollar is affected by many factors. One important factor is the degree of certainty about the currency issuer's political and economic policies. Unstable economic and political policy can cloud trade relations between countries, influencing nations' economies and the strength of their currencies...