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Title: China tells state banks to prepare for a massive dollar dump Post by: Hydrogen on October 03, 2022, 11:43:41 PM Quote
The People's Bank of China has told major state-run banks to prepare to shed dollar holdings while snapping up offshore yuan, which has continued to fall despite prior interventions, sources told Reuters. The scale of this latest effort to prop up the yuan will be big and could provide a floor to the Chinese currency, according to the report. The amount of dollars to be sold hasn't been decided yet, but Reuters said it will primarily involve the state banks' currency reserves. Their offshore branches, including those based in Hong Kong, New York and London, were ordered to review offshore yuan holdings and check to see that dollar reserves are ready. On Thursday, the yuan fell 0.9% to 7.1340 against the dollar and is on track for its worst annual decline since 1994, having lost more than 11% so far this year. Earlier this week, China's offshore yuan this week depreciated to a record-low against the greenback, and its domestic unit fell to its weakest level since the 2008 financial crisis. The Federal Reserve's hawkish policy path has bolstered the dollar to 20-year highs this year, putting pressure on other central banks and triggering a "reverse currency war." While a weaker currency can sometimes be beneficial, as it means exports get cheaper, the yuan's recent decline below the psychological threshold of 7-per-dollar has raised concerns. The People's Bank of China has consistently imposed a strong bias to its currency reference rate to help support the yuan. Central bank officials have also issued verbal warnings against speculating on the yuan and increased the cost of shorting the currency. But it has refrained from raising benchmark rates and instead has been easing them in an effort to spark growth in an economy that's been dragged down by COVID-19 lockdowns, a real estate crash, and supply chain snags. https://markets.businessinsider.com/news/currencies/china-bank-dollar-yuan-currency-markets-economy-beijing-fed-hike-2022-9 .... It appears china is dumping the US dollar to buy more of their own native currency the yuan. This approach contrasts sharply with china's past strategy of devaluing the yuan to boost chinese exports. Exports being the backbone of china's economy. Any move china makes which could carry negative effects on export markets bears watching. Rising fossil fuel prices also carry a negative impact on the shipping of chinese exports overseas. Would anyone here recommend selling the US dollar to buy the chinese yuan? If you dumped assets to fund purchasing something today. What would it be? Title: Re: China tells state banks to prepare for a massive dollar dump Post by: Don Pedro Dinero on October 04, 2022, 04:40:02 AM Would anyone here recommend selling the US dollar to buy the chinese yuan? That is kind of trying to time the market. The normal response to news like this is to expect the Yuan to rise against the dollar in the short term, so a priori a short move like the one you are talking about would make sense. But markets are very irrational and you never know what might happen. If I were to consider doing so, I would only do so with a small part of my portfolio. Title: Re: China tells state banks to prepare for a massive dollar dump Post by: pooya87 on October 04, 2022, 06:53:01 AM Would anyone here recommend selling the US dollar to buy the chinese yuan? There is definitely an economic war going on which is getting more intense and China has been attacking US in any form they can, so targeting the dollar is always on the agenda.But unless you can find a more reliable source than Reuters (which is well known for spreading propaganda), I'd say no. This approach contrasts sharply with china's past strategy of devaluing the yuan to boost chinese exports. Keep in mind that China only devalues Yuan as long as it keeps their prices competitive not indefinitely. These days that their competitors in other regions (specifically in EU) are struggling with the massively increasing production costs, that gives China a much better advantage where they don't need to devalue their currency as much to remain competitive. The winning of that competition is ensured as other currencies are heavily devalued.Title: Re: China tells state banks to prepare for a massive dollar dump Post by: Kakmakr on October 04, 2022, 07:10:59 AM China has also bought a LOT of Gold over several years, so you can see what direction they are going in with their plans for the future. ( Globally, China has the highest reserves of gold at $3.42 trillion. ) - Source : https://www.nasdaq.com/articles/which-nations-have-been-buying-gold
People seem to think that China are buying up their Yuan to boost the Chinese exports, but I think Russia and China are entering into a "Currency War" with the West. China had real concerns about the future of the Dollar and the euro, and that the trade war could descend into a currency war. (Buying Gold as a Store of value, seem to be the end goal for them to buffer them, in the event that the global markets will collapse in the future) Title: Re: China tells state banks to prepare for a massive dollar dump Post by: davis196 on October 04, 2022, 11:09:01 AM The economy of China isn't in it's best condition. I read news about the real estate bubble in China and the growing numbers of young people struggling to find jobs after they graduate. However, this might be western propaganda. I just don't trust any mainstream media anymore.
The OPEC countries agreed to reduce their oil production, so the oil prices will stop decreasing. This combined with a strong dollar might lead to a global recession. I couldn't care less about the monetary policy of the People's Bank in China. I don't care if the yuan is going to have higher or lower value than the US dollar. Maybe we should ask someone, who lives in China about this topic. Title: Re: China tells state banks to prepare for a massive dollar dump Post by: palle11 on October 04, 2022, 11:30:00 AM Would anyone here recommend selling the US dollar to buy the chinese yuan? I don't know who wants to do that if not the few patriotic Chinese. I think it is just an ""economic war" that is still going on between China. This has been on for a while and China is finding means to pull the dollar down because it is a strong factor for international trade. Whoever would sell off dollar to buy Yuan in real life trade is only trying to export Chinese products and reasonable to convert into Yuan for trade but I don't know of who is hodling Yuan above the dollar. So it is just an exercise that is within the place of China. China is trying to protect her currency for further fall and the CBDC is all for giving the people that option for having trade with digital market. Title: Re: China tells state banks to prepare for a massive dollar dump Post by: stompix on October 04, 2022, 11:33:32 AM It appears china is dumping the US dollar to buy more of their own native currency the yuan. This approach contrasts sharply with china's past strategy of devaluing the yuan to boost chinese exports. Because it's one thing to devalue your currency by a few points to keep the balance between imports and exports, and it's a different thing when it dumps to the lowest value in 10 years and for a decade you've become a net food importer, importing 100 billion of food mainly from, guess who, the US. Chian is heavenly dependent on soybeans, corn, and pork, not even counting oil and other raw materials from Australia for example, but food security is the top priority for the CCP, the ghost of the 59-61 famine won't let them sleep at night if even a slight danger is threatening this. That's why they are auctioning stockpiles after a stockpile of soybeans and corn and pork to keep prices stable, Quote 18 Apr 2022 China auctions 502,900 mt of soybean imports from reserves On May 07, 2022 China to auction 314,000 tons of imported soybeans Sep 29, 2022 China would auction off 500,000 MT of imported soybeans from state-owned reserves Pork costs in China, the world’s biggest consumer, rose an average of 22.5% last month https://www.theguardian.com/world/2022/sep/13/chinese-pork-prices-surge-to-new-high-prompting-authorities-to-act Each country has its own priorities and each government sees different dangers and different things that might trigger the population to revolt, for some its a guy getting shot in the street because of his color, for others is the price of pork for others is a piece of cloth on women's head. Cina will sacrifice half or all of its growth to keep food prices at bay, that's a line nobody will dare cross. Title: Re: China tells state banks to prepare for a massive dollar dump Post by: Wind_FURY on October 04, 2022, 12:03:55 PM Although, isn't China still one of the largest HODLers of United State debt, and U.S. Dollars? Why would they start dumping an asset that they are largely exposed to, and crash the price of that asset? Do they truly want to crash the currency of U.S. economy, the largest importer of their exports?
Title: Re: China tells state banks to prepare for a massive dollar dump Post by: stompix on October 04, 2022, 12:29:16 PM Why would they start dumping an asset that they are largely exposed to, and crash the price of that asset? Do they truly want to crash the currency of U.S. economy, the largest importer of their exports? They are not dumping it to crash the USD, as obviously they can't do that, they are desperately selling $ for yuan to stop the yuan from crashing, a completely different story in reality! It's literally in the first line: Quote Reuters reported that China told state-owned banks to get ready to sell dollars and buy yuan in an effort to prop up the local currency. and a little more down the article:Quote On Thursday, the yuan fell 0.9% to 7.1340 against the dollar and is on track for its worst annual decline since 1994, having lost more than 11% so far this year. Earlier this week, China's offshore yuan this week depreciated to a record-low against the greenback, and its domestic unit fell to its weakest level since the 2008 financial crisis. They are dumping reserves and that's what every country would do in such situations and that's the main reason foreign currency reserves are held in the first place, when you're own currency is in trouble you increase demand by buying it with reserves when you want to devalue it you buy $ or Euros and weaken it. It's all a matter of how big those are and if it's worth long term to do it, as numerous countries have failed, and some have decided it's not worth it and they can't stop it anyhow so they nearly gave up on this method, like Turkey for example. Title: Re: China tells state banks to prepare for a massive dollar dump Post by: pooya87 on October 04, 2022, 01:13:44 PM Although, isn't China still one of the largest HODLers of United State debt, and U.S. Dollars? Why would they start dumping an asset that they are largely exposed to, and crash the price of that asset? Do they truly want to crash the currency of U.S. economy, the largest importer of their exports? Good questions and I'm afraid we will have a better answer for them in the future. For now it is worth knowing that China has been slowly pulling out of US economy for months now. A large number of businesses already left US, a lot of Chinese companies pulled out of US stock exchange and investors also pulled their money out.It is also worth knowing that if they go ahead with the plans to bring Taiwan back to China, most probably US is going to do the same they did to Russia which is to sanction them! In which case US will no longer be "largest importer of their exports" and the incentive to baghold USD is no longer there for the Chinese. Title: Re: China tells state banks to prepare for a massive dollar dump Post by: bittraffic on October 04, 2022, 01:37:09 PM Although, isn't China still one of the largest HODLers of United State debt, and U.S. Dollars? Why would they start dumping an asset that they are largely exposed to, and crash the price of that asset? Do they truly want to crash the currency of U.S. economy, the largest importer of their exports? Good questions and I'm afraid we will have a better answer for them in the future. For now it is worth knowing that China has been slowly pulling out of US economy for months now. A large number of businesses already left US, a lot of Chinese companies pulled out of US stock exchange and investors also pulled their money out.It is also worth knowing that if they go ahead with the plans to bring Taiwan back to China, most probably US is going to do the same they did to Russia which is to sanction them! In which case US will no longer be "largest importer of their exports" and the incentive to baghold USD is no longer there for the Chinese. Economic war still for both countries seems to be in constant bitter to each other. This will also result in China's demand for its importer to use Yuan for thier transaction. It could be beneficial to them but will also cripple other economies. It would only appear US and China are destroying the value of the currencies of other countries. If we are in crypto where do you suggest buying Yuan? I was hoping to actaully get some RMB or Yuan stablecoin but there is none even the p2p in binance. Title: Re: China tells state banks to prepare for a massive dollar dump Post by: Obito on October 04, 2022, 02:21:41 PM They're dumping dollar because they're experiencing a housing market crisis and I think that going back to yuan and making it more valuable might be their solution to this problem because I mean in an economic perspective, US dollar is a reserve currency right? And wouldn't accumulating as many of it would be the best course of action?
Title: Re: China tells state banks to prepare for a massive dollar dump Post by: DrBeer on October 04, 2022, 06:57:44 PM It's no secret that:
1. The domestic economy of China is now going through a very difficult period, and the crisis has not gone away, moreover, it is artificially contained. "Coercion" to the yuan is most likely aimed at stabilizing internal problems. Wherein.. 2. ... the state really needs the dollar, because China's economy is tied to Western technologies, investments, and for the next 10 years the West (read the United States) will not only withdraw its production from China, but will also prohibit the construction of any production in China for the next 10 years. One simple question - how will China cope with these problems without a stable currency? With this manipulation, China does not give up the dollar, because. without it, the Chinese economy will collapse quickly and with certainty. But he is trying with one easy manipulation to solve 2 of his problems - artificially raise the value of the falling yuan, and fill the "bins" of the state with dollars, which in any case will not lose their value, and will support both the government and the economy There was a topic - something from the field "More than 20 countries abandoned the dollar" - ask which countries made such a "smart step" :) Threat and their rulers for some reason, quietly, keep their not the most honest income in the same dollar. Well, everything is as always, for the fighters with the dollar and the USA :) Title: Re: China tells state banks to prepare for a massive dollar dump Post by: Vinaa77 on October 04, 2022, 08:28:10 PM Would anyone here recommend selling the US dollar to buy the chinese yuan? If you dumped assets to fund purchasing something today. What would it be? One of the advantages of China is that it can use the yuan to buy goods from other countries. In contrast to other countries in general, which have to exchange into dollars to buy goods from abroad. In this case, international transactions run smoothly against China. However, small countries or developing countries cannot take aggressive decisions, because their currencies do not apply to international transactions. But the Dollar remains the number one currency in force throughout the world, so we cannot switch to using Yuan. USA forces countries to use dollars. Of course in this case we have to see how far the influence of Yuan on global business. Title: Re: China tells state banks to prepare for a massive dollar dump Post by: tabas on October 04, 2022, 10:49:30 PM IIRC, on 2020 during the pandemic's height they bought a lot of US stocks because many of them were on a plunge. And they're on the headlines that 10 years from now, they'll be having the super economy that will surpass even US. But as I thought that they're thriving during these crises, they're also being hit by various of it badly and they can't skipit.
Would anyone here recommend selling the US dollar to buy the chinese yuan? Depends on the goal, short term it could be a good plan but we don't know what's going to be the result of it in the future. It's hard to guess and time what will happen to the economy of China but with what they've been doing, my opinion is that they're really trying to be on top of everything in the next couple years. China is still one of the huge source for most products and labor, they've got the manufacturers inside them and that's one factor that they can sustain themselves and if they do a massive dump for the dollar, it's okay because they're trying to be unreliant to it.Title: Re: China tells state banks to prepare for a massive dollar dump Post by: $anounimus$ on October 05, 2022, 05:16:50 AM Would anyone here recommend selling the US dollar to buy the chinese yuan? Personally, I only hold a few USD and my National Currency at the same time, along with a few bitcoins as well. It doesn't seem like a good idea to sell US dollars. If you have access to dollars and yuan, it depends on what you want from them. Apart from Bitcoin, the Yen is the only global currency that is not shrinking at the moment. If you prefer Chinese products and want to buy a lot (not just invest in them), then buying yuan will be a better choice. Title: Re: China tells state banks to prepare for a massive dollar dump Post by: Z390 on October 05, 2022, 06:06:07 AM My National currency keeps dipping almost every week, the safest option for people in my country like me is US Dollars that's why I converted all my Fiat into BUSD, Robert Kiyosaki keeps warning us that USD will collapse by first quarter of 2023 what impact will this have on stable coins like USDT and BUSD? Also where are you guys getting Yuan or Yen from?
Title: Re: China tells state banks to prepare for a massive dollar dump Post by: Wind_FURY on October 05, 2022, 07:54:08 AM Although, isn't China still one of the largest HODLers of United State debt, and U.S. Dollars? Why would they start dumping an asset that they are largely exposed to, and crash the price of that asset? Do they truly want to crash the currency of U.S. economy, the largest importer of their exports? Good questions and I'm afraid we will have a better answer for them in the future. For now it is worth knowing that China has been slowly pulling out of US economy for months now. A large number of businesses already left US, a lot of Chinese companies pulled out of US stock exchange and investors also pulled their money out.It is also worth knowing that if they go ahead with the plans to bring Taiwan back to China, most probably US is going to do the same they did to Russia which is to sanction them! In which case US will no longer be "largest importer of their exports" and the incentive to baghold USD is no longer there for the Chinese. I misunderstood China's intentions, but stompix posted a very good point on why China is preparing for a "massive U.S. Dollar dump". It's just to prop up it's own currency, the Yuan. Perhaps the Fed's tightening to stop, and reverse inflation in the country is having a negative effect from China's point of view. Because through a strong Dollar, and from China's point of view, it might be that inflation is also being exported to them. Haha. Title: Re: China tells state banks to prepare for a massive dollar dump Post by: pooya87 on October 05, 2022, 01:23:27 PM If we are in crypto where do you suggest buying Yuan? I was hoping to actaully get some RMB or Yuan stablecoin but there is none even the p2p in binance. Even if you were a million percent sure that RMB and Yuan were going to the moon, you should still not buy stablecoins because they are shady centralized shitcoins that can freeze your money or simply scam and run away.~ The exchange rate charts don't show any major change though. I misunderstood China's intentions, but stompix posted a very good point on why China is preparing for a "massive U.S. Dollar dump". It's just to prop up it's own currency, the Yuan. Perhaps the Fed's tightening to stop, and reverse inflation in the country is having a negative effect from China's point of view. Because through a strong Dollar, and from China's point of view, it might be that inflation is also being exported to them. Haha. In any case, if you look at the act alone this conclusion (strengthen their currency) makes sense and it may very well be one of the motivations; but I believe there is a bigger picture here. China is not doing ONLY that, there is a lot of other steps they are taking. Like the ones I listed, and I clearly see a trend. Title: Re: China tells state banks to prepare for a massive dollar dump Post by: lixer on October 05, 2022, 05:12:53 PM Depends on the goal, short term it could be a good plan but we don't know what's going to be the result of it in the future. It's hard to guess and time what will happen to the economy of China but with what they've been doing, my opinion is that they're really trying to be on top of everything in the next couple years. China is still one of the huge source for most products and labor, they've got the manufacturers inside them and that's one factor that they can sustain themselves and if they do a massive dump for the dollar, it's okay because they're trying to be unreliant to it. That's easy. We can just follow the news related to it and then we must watch the movement of the currency. If it's slowly going down followed by some negative news then we may need to sell before the decline continues. Local currencies like that are I think not really great in terms of investing, I mean they don't always pump like what we have here in cryptos which have a bear and bull cycles.The country of China are known to strive hard only to become the best among the rest. They have a mindset similar to Russia which thinks they are too powerful. No wonder why they are dumping the dollar to make their own currency strong. Title: Re: China tells state banks to prepare for a massive dollar dump Post by: Sithara007 on October 06, 2022, 02:20:08 AM Measures such as this one won't achieve anything. Capital controls are a thing of the past. Chinese Yuan is already one of the most manipulated currencies in the world. And they can't boost up the exchange rates with these half hearted measures. This is similar to what the authorities did in Russia. In order to prop up the Ruble, they asked the businesses to convert 75% of their foreign revenues to local currency. It had a short term impact, but in the long term it achieves nothing. If the national currency need to be strengthened, there are other ways to do it. But the governments don't want to spend their funds on doing it.
Title: Re: China tells state banks to prepare for a massive dollar dump Post by: Wind_FURY on October 06, 2022, 08:12:05 AM ~ I misunderstood China's intentions, but stompix posted a very good point on why China is preparing for a "massive U.S. Dollar dump". It's just to prop up it's own currency, the Yuan. Perhaps the Fed's tightening to stop, and reverse inflation in the country is having a negative effect from China's point of view. Because through a strong Dollar, and from China's point of view, it might be that inflation is also being exported to them. Haha. The exchange rate charts don't show any major change though. Because Forex is a more sophisticated animal, and to attack it is to use a different strategy. It isn't like cryptocurrencies that plebs and whales click the maximum amount, then click the market-buy button. Hahaha. Like QT, QE, and BRRR-Money prints it takes time to see the effects. Quote In any case, if you look at the act alone this conclusion (strengthen their currency) makes sense and it may very well be one of the motivations; but I believe there is a bigger picture here. China is not doing ONLY that, there is a lot of other steps they are taking. Like the ones I listed, and I clearly see a trend. From the point of view of the United States, China needs to export more products to them to get the U.S. Dollars to replace that that they have dumped. No country can continue to play the macro-economics game without U.S. Dollars. Title: Re: China tells state banks to prepare for a massive dollar dump Post by: posi on October 06, 2022, 09:00:21 AM Although, isn't China still one of the largest HODLers of United State debt, and U.S. Dollars? Why would they start dumping an asset that they are largely exposed to, and crash the price of that asset? Do they truly want to crash the currency of U.S. economy, the largest importer of their exports? If rather it's not China trying to dump the dollar they're trying to find a way to save their yuan, avoid letting it drop too deeply, seriously affecting the national economy. Japan and other countries are also planning to find solutions to prevent the devaluation of their national currencies to avoid creating a serious economic crisis in their countries. The dollar is at a 20-year high and this is good for the US but for the countries that are borrowing money from the US, which depend on the US, they are having a hard time repaying the US government and do business with America. Title: Re: China tells state banks to prepare for a massive dollar dump Post by: el kaka22 on October 06, 2022, 05:53:22 PM I believe that they are going to be forced to sell dollars eventually, what are you going to do with trillions of dollars that you can't use, and still have a financial break in your nation? We have seen the huge real estate bubble bursting in China just a year ago, and that means they need to get some more yuan, and value their own money a bit more in order to protect its citizens.
USA should start to move their manufacturing to other places gradually as a response to make sure that nobody has a lot of dollar to devalue it whenever they want to. If you are dependent on just one nation to build everything for you, then you are going to eventually lose its value. Title: Re: China tells state banks to prepare for a massive dollar dump Post by: DrBeer on October 06, 2022, 09:55:46 PM I believe that they are going to be forced to sell dollars eventually, what are you going to do with trillions of dollars that you can't use, and still have a financial break in your nation? We have seen the huge real estate bubble bursting in China just a year ago, and that means they need to get some more yuan, and value their own money a bit more in order to protect its citizens. USA should start to move their manufacturing to other places gradually as a response to make sure that nobody has a lot of dollar to devalue it whenever they want to. If you are dependent on just one nation to build everything for you, then you are going to eventually lose its value. Absolutely right ! China's export-oriented economy cannot live without the Euro and the Dollar. The euro is not in the best position right now. So it is replaced by the dollar, where the euro has become uncompetitive. This means that the status of the dollar is getting higher .. Which, in general, perfectly shows the current cross-rate of the dollar / euro. Regarding the transfer of production - 2 months ago, the United States banned American companies for the next 10 years from placing new high-tech production in China. Moreover, a significant part of high-tech industries is beginning to migrate back to the United States. We will see the results of this very soon ... And this is clearly not to the benefit of China, which will soon burst the bubble of its artificially inflated economy ... PS. The state ban on the transfer of large amounts of money from China is already working. Many understand what this means .... Title: Re: China tells state banks to prepare for a massive dollar dump Post by: Wind_FURY on October 07, 2022, 11:52:12 AM Although, isn't China still one of the largest HODLers of United State debt, and U.S. Dollars? Why would they start dumping an asset that they are largely exposed to, and crash the price of that asset? Do they truly want to crash the currency of U.S. economy, the largest importer of their exports? If rather it's not China trying to dump the dollar they're trying to find a way to save their yuan, avoid letting it drop too deeply, seriously affecting the national economy. Japan and other countries are also planning to find solutions to prevent the devaluation of their national currencies to avoid creating a serious economic crisis in their countries. The dollar is at a 20-year high and this is good for the US but for the countries that are borrowing money from the US, which depend on the US, they are having a hard time repaying the US government and do business with America. The situation in Japan is their central bank's fault, the Bank of Japan. They planned, and purposefully printed trillions, and more TRILLIONS of Yen to buy shares of private companies to save them from failure. The effect which we're seeing is a weaker currency. Because of the Fed's strenghtening of the U.S. Dollar, I believe it will give them some capacity to do the same when the recession has done its worst. The Fed will be "investing", and will be buying shares of failing American companies/banks. The U.S. government will literally OWN a large slice of the U.S. economy. Title: Re: China tells state banks to prepare for a massive dollar dump Post by: goldkingcoiner on October 07, 2022, 01:55:00 PM In the long run, this is a good thing. Especially for Bitcoin. China becomes less reliant on the US, the US becomes less reliant on China. We all stop trying to politically control each other and China can keep on quietly torturing, enslaving, killing and organ-harvesting the "unwanted" peoples of their population.
What a fun time to be alive. Russia is probably going to never touch the dollar again and Bitcoin will finally show itself for what it is. Namely a third option. One which remains stable as the one global money. Title: Re: China tells state banks to prepare for a massive dollar dump Post by: pooya87 on October 09, 2022, 07:27:31 AM Those who claim China is trying to save its own economy are ignoring one simple question: where do all those dollars go? ;)
They won't just vanish into thin air, they go back to United States. Now the increased "supply" means only one thing, more inflation as dollar loses its value. In other words China dumped an "asset" at its ATH thanks to FED increasing the interest rate and consequently increasing the exchange rate of dollar. This is as I said another step in the ongoing global economic war. P.S. Something interesting to point out is that China is filling that small gap left in its economy by abusing the failing EU economy and attracting the investors, companies, factories, etc. US is doing the same but the difference is that China still has access to cheap energy while US is not and US is also hit with inflation and recession. In any case in this war EU is screwed! It doesn't have that energy, the inflation is high, production cost is extremely high and investors are fleeing. High unemployment rates in near future in EU is very likely too. Title: Re: China tells state banks to prepare for a massive dollar dump Post by: blue_hurricanger on October 09, 2022, 10:47:53 AM In the long run, this is a good thing. Especially for Bitcoin. China becomes less reliant on the US, the US becomes less reliant on China. We all stop trying to politically control each other and China can keep on quietly torturing, enslaving, killing and organ-harvesting the "unwanted" peoples of their population. Nope, not good for the long run. If superpowers like China and US were less reliant on each other, the whole world become more fragile. Think about if both have less stake in each other, would they really care if the other goes on full rampant or war with their neighbor? No, right? The thing about it is if countries start to become more isolated, more shit will happen without anyone batting an eye. I'm not a globalist, but I do see the benefit from it to keeping countries in check, from going to the rampant mode. US and China are reliant on each other and will keep each other in check, that is my point. The same as nukes in the cold war when superpowers like the US and Soviet only dared to pull proxy war at each other sphere of influence. Title: Re: China tells state banks to prepare for a massive dollar dump Post by: DrBeer on October 09, 2022, 05:03:57 PM Not subsiding, while artificially hidden crisis reminds itself of Yuan/Dollar quotes. In this situation, "throwing away the dollar" is a really good solution? :) Well, the Russian Federation transferred a significant part of its gold reserves to the Yuan, so what? Net LOSS - billions of dollars. China will "merge" its dollars, print a lot of Yuan and ... WHAT?
Let's look at the chart: https://i.ibb.co/mqbsYZG/2022-10-09-20-00-58-CNY-USD-Investing-com.png Title: Re: China tells state banks to prepare for a massive dollar dump Post by: kryptqnick on October 09, 2022, 05:13:16 PM I think that China's move makes sense because they want to strengthen their fiat. Just half a year ago, Russia did something similar by forcing banks and, I think, corporations, to sell 80% of their foreign reserves for local fiat to make it stronger. That, with some other actions, did manage to stabilize ruble. So the idea of selling USD to make yuan stronger makes sense, and if someone wants to support China, I guess they can do the same. But let's not forget that the USD is devaluating as well, and so are other major fiat currencies. So IMO if one wants to avoid devaluation and is willing to take a risk and do long-term hodling, now is the time for Bitcoin.
Title: Re: China tells state banks to prepare for a massive dollar dump Post by: Wakate on October 09, 2022, 05:32:40 PM I think China is really experiencing a difficult time now that time look very tough and the country economy seems to be falling. China taking a bold step to sell part of there dollars reserve could be an alternative to boost there economy and make it stronger. I hope this will have a significant effect on there prospect for long since they want people to keep buying yaun to make it stronger to be able to withstand the difficult time that the county is facing. China is trying to use this strategy to bring back the economy to recovery position.
Title: Re: China tells state banks to prepare for a massive dollar dump Post by: xiao20002 on October 09, 2022, 07:00:44 PM I think China is really experiencing a difficult time now that time look very tough and the country economy seems to be falling. ... Aren´t their economic difficulties self-inflicted at least to some degree? I imagine that their very restrictive corona measures (e.g. locking down entire cities like Shanghai for weeks) have harmed the local economy. |
