Can the yuan dethrone the US dollar as the world’s reserve currency?

[Mista]

It's about international trade, not China's domestic growth, China is the world biggest trader and top trading partner of most countries in the world, China is working on getting more countries to do trade with China with Yuan, one country at a time.

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Lol if it's just about international trade, why with China as the largest trading nation the world has only 2.76% of reserve currency held in RMB? Barely half of the JPY, on par with the likes of Australian and Canadian dollar?

Again, people like you who spout neoliberal tropes do not get what is happening.

I work in the financial industry, and I know my shit. Do you?

Why does the CNY has only 2% share in the global reserve currency despite being the world's largest trading nation? Why does China restrict capital outflow? Why did the Chinese rich moved their capital out of China when Xi starts talking about common prosperity? That's all signs of confidence in an emerging global reserve currency, right?

 

[beijingwalker]

Lol if it's just about international trade, why with China as the largest trading nation the world has only 2.76% of reserve currency held in RMB? Barely half of the JPY, on par with the likes of Australian and Canadian dollar?

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Are you for real? we all know that trend just started for a couple or years , don't we? China is shifting so the rest of the world, you expect dollar to collapse overnight? China has trillions of dollars accumulated over the past 50 years and is not in a hurry to dump them all in a year or two like what Russia did.

 

[F-22Raptor]

Where is the rule of law and market transparency when the US unilaterally weoponizes the dollar seizing assets both linked to foreign governments and private citizens? Also, what is more important to purchase, commodities and manufactured goods or stocks and bonds?

Again, people like you who spout neoliberal tropes do not get what is happening. No one is saying that the USD is going to disappear but it’s overarching hegemony is coming to an end and with that will come an end to the US govts ability to sanction others and create growth by inflation. The foolish and extremely aggressive foreign policy carried out by the neocons have created great distrust in using the dollar and swift system and that is why the world is looking for alternatives.

Dozens of major countries have signaled they will be diversifying their trade. This is a momentous event. Dollar dominance will only decline in the future not increase.

Do you know how many times I’ve heard this over the last 15 years?

The world is not PDF. US financial markets and companies are too powerful. Hundreds of billions of dollars are traded everyday in US markets alone. Businesses don’t care about your political views.

 

[beijingwalker]

Do you know how many times I’ve heard this over the last 15 years?

15 years? it just started for a couple of years, after US tariffs against China and Ukraine war.

 

[tower9]

Do you know how many times I’ve heard this over the last 15 years?

The world is not PDF. US financial markets and companies are too powerful. Hundreds of billions of dollars are traded everyday in US markets alone. Businesses don’t care about your political views.

Do you know how things have dramatically changed over the last few weeks? Over the last ten years, it has changed gradually but the Ukraine war and the US’s anti China crusade are now creating the perfect storm accelerating these trends.

You’re paying 2.5x to get dinner and you’re acting like nothings changed lol

 

[tower9]

Lol if it's just about international trade, why with China as the largest trading nation the world has only 2.76% of reserve currency held in RMB? Barely half of the JPY, on par with the likes of Australian and Canadian dollar?

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I work in the financial industry, and I know my shit. Do you?

Why does the CNY has only 2% share in the global reserve currency despite being the world's largest trading nation? Why does China restrict capital outflow? Why did the Chinese rich moved their capital out of China when Xi starts talking about common prosperity? That's all signs of confidence in an emerging global reserve currency, right?

Yes you work in the financial industry that has overseen some of the most calamitous disasters over the past two decades. That’s why you parrot the Wall Street journal.

China has only recently decided to shift away from the USD publicly and what have you seen over the past few weeks? Saudi Arabia, which controls the global supply of oil and has the petrodollar by the balls, following suit. Brazil, one of the worlds top commodities producers also following suit. ASEAN saying the same thing, various African states as well and let’s not forget Russia and Iran which are already on the sanctions list.

So you’re finally getting a critical mass of countries who are shifting away from the dollar, which has never happened before. And you’re thinking this doesn’t portend a major global shift just because you see a few Chinese billionaires buy overseas assets lol you’re not seeing the forest for the trees.

 

[F-22Raptor]

15 years? it just started for a couple of years, after US tariffs against China and Ukraine war.

Do you know how things have dramatically changed over the last few weeks? Over the last ten years, it has changed gradually but the Ukraine war and the US’s anti China crusade are now creating the perfect storm accelerating these trends.

You’re paying 2.5x to get dinner and you’re acting like nothings changed lol

No, nothing has changed. If US dollar reserves were to drop by another 10% it would STILL remain the dominant currency. In foreign exchange markets, 90% of all transactions are in dollars.

I don’t think you grasp how powerful US financial markets are.

 

[tower9]

No, nothing has changed. If US dollar reserves were to drop by another 10% it would STILL remain the dominant currency. In foreign exchange markets, 90% of all transactions are in dollars.

I don’t think you grasp how powerful US financial markets are.

You have experienced wild inflation with housing costs, food costs, fuel costs 3x it was fifteen years ago and you think nothing has changed?

The USD is going to remain dominant for a while but it’s dominance will recede and as it recedes so will the US govts ability to print money without causing inflation and also gone will the US govts ability to sanction more countries without causing more to flee from the USD.

 

[beijingwalker]

No, nothing has changed. If US dollar reserves were to drop by another 10% it would STILL remain the dominant currency. In foreign exchange markets, 90% of all transactions are in dollars.

I don’t think you grasp how powerful US financial markets are.

As long as more and more countries agree on trading with China with Yuan, China'll be happy and would settle for it.

 

[Mista]

Are you for real? we all know that trend just started for a couple or years , don't we? China is shifting so the rest of the world, you expect dollar to collapse overnight? China has trillions of dollars accumulated over the past 50 years and is not in a hurry to dump them all in a year or two like what Russia did.

Yes you work in the financial industry that has overseen some of the most calamitous disasters over the past two decades. That’s why you parrot the Wall Street journal.

China has only recently decided to shift away from the USD publicly and what have you seen over the past few weeks? Saudi Arabia, which controls the global supply of oil and has the petrodollar by the balls, following suit. Brazil, one of the worlds top commodities producers also following suit. ASEAN saying the same thing, various African states as well and let’s not forget Russia and Iran which are already on the sanctions list.

So you’re finally getting a critical mass of countries who are shifting away from the dollar, which has never happened before. And you’re thinking this doesn’t portend a major global shift just because you see a few Chinese billionaires buy overseas assets lol you’re not seeing the forest for the trees.

I mean if you guys really believe so, we can come back a few months and see the statistics for next quarter. Or better still, prove it with your action by shorting the USD and longing the CNY.

 

[beijingwalker]

I mean if you guys really believe so, we can come back a few months and see the statistics for next quarter. Or better still, prove it with your action by shorting the USD and longing the CNY.

As long as more and more countries agree on trading with China with Yuan, China'll be happy and would settle for it. China doesn't want to replace dollar with yuan in the first place, China just wants to weaken it.

 

[tower9]

I mean if you guys really believe so, we can come back a few months and see the statistics for next quarter. Or better still, prove it with your action by shorting the USD and longing the CNY.

The real test is seeing what happens in five years not two months, lmao this is the problem with you naysayers you think if it doesn’t happen in one day it won’t happen.

And yes I’m buying other assets to hedge.

 

[F-22Raptor]

You have experienced wild inflation with housing costs, food costs, fuel costs 3x it was fifteen years ago and you think nothing has changed?

The USD is going to remain dominant for a while but it’s dominance will recede and as it recedes so will the US govts ability to print money without causing inflation and also gone will the US govts ability to sanction more countries without causing more to flee from the USD.

USD dominance isn’t going anywhere.

 

[tower9]

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USD dominance isn’t going anywhere.

China was a big part of supporting USD dominance. Until the US govt started to become hysterically anti China. China has only recently started to publicly announce a shift away from the USD, literally just in the past month and you’re grasping onto graphs from past data that have no relation to the massive policy shifts happening today in a critical mass of massive countries.

 

[beijingwalker]

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USD dominance isn’t going anywhere.

But it goes up fast year on year, dollar goes the opposite direction