UK China Direct Trade Settlement

This has no effect on the U.S. dollar's status reserve currency. It does reduce the U.S. government's ability to punish China with economic sanctions.

China to start direct trade between yuan and British pound
China's Foreign Exchange Trade System (CFETS) said Wednesday the Asian nation would start direct trade between the renminbi and the British pound on Thursday.

Sterling and yuan would be directly swapped without using the US dollar as an intermediary, the trade platform noted.

"The move will promote the bilateral trade and investment between China and the United Kingdom and facilitate the use of renminbi and pound in the cross-border trade settlement," CFETS commented.

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