INDIA , Russia, Brazil, China, and South Africa may soon consider creating their own currency for BRICS : FM Lavrov

[beijingwalker]

China won't do it, short and clear. China will never give up control of her currency, only fools believe otherwise.

 

[Abdul Rehman Majeed]

First of all, with this token, either China dropped Yuan completely or China have to be at least more freely tradable to other currency, that would put burden on demand of Yuan as currency.

On the other hand, you are assuming everyone play nice and of course, if that is the case, then 1 country 1 vote is not going to be a problem, but what if any one of the country do what they do now, and inflate or devaluate their own currency so to manipulate the price of the token? Say it was 81 INR to 1 Token and on the other hand the same Token get 7 RMB, what if India devalue INR and now you only need 53 INR to convert to 1 token? Effectively you can get more RMB, at least in value if you do that. How about if China do it in reverse?? Would you be okay with that??

For China, yes, it would free China from the need to cater to Western Demand (It doesn't actually because market share also play a role, but let's pretend it does) but what you are nominating is simply for China to bound by another demand, which is whoever going to be in charge of the token. Again, if you are China, would you agree to that?

There is nothing China would gain by making Yuan as world reserve currency.

Being a world reserve currency is a burden on a nation.

The current structure of US & China leading the world is a tested model.

Yuan is pegged to US Dollar

All Oil is sold in US Dollars

All Goods are made in China

 

[Reashot Xigwin]

LOL. Even if such currency exist the first thing on my mind is how much is the conversion rate to the $

 

[Abdul Rehman Majeed]

LOL. Even if such currency exist the first thing on my mind is how much is the conversion rate to the $

BRICS is a falied organization.

Except China, all the other countries are failed states.

China should dissolve BRICS.

G2 (US + China) will lead the world in the 21st century.

 

[beijingwalker]

BRICS is a falied organization.

Except China, all the other countries are failed states.

China should dissolve BRICS.

G2 (US + China) will lead the world in the 21st century.

Any China won't give up her currency for the other 4

GDP share of BRICS member states.

 

[Hecig]

First of all, with this token, either China dropped Yuan completely or China have to be at least more freely tradable to other currency, that would put burden on demand of Yuan as currency.

On the other hand, you are assuming everyone play nice and of course, if that is the case, then 1 country 1 vote is not going to be a problem, but what if any one of the country do what they do now, and inflate or devaluate their own currency so to manipulate the price of the token? Say it was 81 INR to 1 Token and on the other hand the same Token get 7 RMB, what if India devalue INR and now you only need 53 INR to convert to 1 token? Effectively you can get more RMB, at least in value if you do that. How about if China do it in reverse?? Would you be okay with that??

For China, yes, it would free China from the need to cater to Western Demand (It doesn't actually because market share also play a role, but let's pretend it does) but what you are nominating is simply for China to bound by another demand, which is whoever going to be in charge of the token. Again, if you are China, would you agree to that?

Yuan would continue to be the currency inside china.

The Token value w.r.t individual currency would be set by the independent body I mentioned earlier. Based on pre-determined and agreed upon parameters.

The organization to be controlled jointly by all members to avoid conflict of interest. I have mentioned all of this before. This was the traditional role of the IMF.

I do not know the challenges and risk and opportunities facing china. So I am in no position to make a claim for or against it for china.

For most part of your history your rate of growth was abysmal.

Democracy needs time to mature depending on the HDI of the Nation. Nations need to attain a certain "Critical mass" in terms of Education, social stability, opportunity, economic activity etc. before they can take off.

 

[Abdul Rehman Majeed]

Any China won't give up her currency for the other 4

GDP share of BRICS member states.
View attachment 913505

Exactly!

All the other BRICS Countries are failed / minuscule economies.

China should dissolve this nonsensical group and focus on G2 and partner with the US.

China and US will lead the 21st century.

 

[beijingwalker]

Yuan would continue to be the currency inside china.

In Russia too now

 

[Hecig]

LOL,, are you really serious or joking? sustainable? from GDP same as China's 70 years ago to one fifth of China today? how long do you like to "sustain" this?

Don't worry about us, We know where we come from and where we are going. Because unlike you, we get to choose our own destiny.
Now if only you could do that.

 

[beijingwalker]

China's yuan now accounts for nearly half of Moscow's currency market as Russian central bank calls for balanced transition to the redback

The yuan's share of the currency market jumped to 40%-45% from less than 1% at the start of the year, according to the Moscow Exchange.

markets.businessinsider.com

 

[jhungary]

Yuan would continue to be the currency inside china.

The Token value w.r.t individual currency would be set by the independent body I mentioned earlier. Based on pre-determined and agreed upon parameters.

The organization to be controlled jointly by all members to avoid conflict of interest. I have mentioned all of this before. This was the traditional role of the IMF.

I do not know the challenges and risk and opportunities facing china. So I am in no position to make a claim for or against it for china.

It does not matter if Yuan continue to be currency inside China, if you have the token in effect for foreign trade, you would have to be able to convert said token into Yuan or vice versa, which mean the token would affect Yuan and Yuan will affect the token.

And again, you are assuming that "independent" body can withhold its integrity. as I said, if everyone play nice then yes, it would not be an issue, but again, Russia and China already have seen manipulation of their currency in 2022 and 2019 respectively, would you risk that is another issue

And finally, what would China gain from this? You are essentially asking China to give up their advantage on their economy. I mean, the token has to be back by all the basket nation, 1 to 1 (as in 1 country 1 vote) means everyone would have to share the same backing, which does not reflect on the demand of each currency, because you are either asking every country to reach the level of backing China can offer or have China demote themselves and offer the same backing as everyone else, this will not be able to back the currency because of the trade imbalance, because again, China dominate the trade volume, the value of Trade for China is equal to the GDP of India, Russia and Brazil put together, there will be imbalance demand on Yuan to transfer to the token (because of this imbalance) and you are asking China to ignore the imbalance and let the other BRICS member to have a 1 to 1 right??

That is a tough ask for China to go with that.

 

[beijingwalker]

Don't worry about us, We know where we come from and where we are going. Because unlike you, we get to choose our own destiny.
Now if only you could do that.

You mean being poor and underdeveloped is your people's own choice? Stay poor, stay hungry.

 

[Hecig]

In Russia too now

For now.

 

[beijingwalker]

For now.

but you are still wrong, it's not only in China now.

 

[Abdul Rehman Majeed]

For now.

If India, Russia, Brazil and South Africa want to replace their currencies with the Chinese Yuan then China may agree.