If I understand “US Dollar is Global Currency” concept correctly, PART of that “dominance” relies on many countries’ holding US Dollars in their central reserves. And, using those dollars to trade amongst themselves.
If the debtor countries “swap” reserve dollars and replace the dollars with renmenbi/yuan, then US Dollar is weakened as “The Global Currency”.
The “pool” of US dollars gets smaller, and , eventually there are no more US dollars, and the countries are then forced to settle trade in some other “currency”.
In other words, China is using these currency swap tactics to elevate the renmenbi to “global currency” status.
And gain the “advantages” that accrue to the country that controls The Global Currency.
Is that a reasonable comment?
China is playing a long game.
Not to mention that China loans use Western LEGAL style contracts, that will be supported IN WESTERN COURTS, that back the loans with the natural resources the debtor nations.
China is using the US/West “Rule of Law” against the US/West.
ralph