[Phoenix]

De-dollarisation is not so simple as close to $30 Trillion in debt is denominated in USD. As interest rate has risen the demand for USD has risen to service this rising debt.

Unfortunately developing countries attempting to break from the US dollar are those with highest debt like Argentina, Brazil etc and they need US$ to service their debt.

What is happening is they are taking advantage of China's dedollarisation efforts to dump their weak currencies that nobody wants in exchange for Yuan. They then selloff the Yuan to get USD to service their debts.

While the media entertain us with dramatic dedollarisation stories , the forex market tells us what is really going on. Even as USD falls against Yen and Euros, it is rising fast against Yuan. The reason is Yen and Euros are also major currencies use for debt financing.

Sorry, I do not quite find this thing plausible about selling emerging currencies into USD and then using the USD to buy the Yuan and then to sell the Yuan for USD to repay their USD debts.

This is too much of a round-about way, which could cause quite a fair bit of losses taken on spreads.  Why cant they just sell their emerging currencies to USD and use that to repay their debts?

They are being hit with a double whammy in terms of a strengthening USD which they have to buy to repay their loans as well as enduring servicing high interest rates  and will not have the appetite to do the first line above.

I think the Yuan weakening against the USD may have other factors than what you mentioned.