Russia and others, move to use Yuan instead of dollar.

[Lida93]

This is what could be referred to in international politics as power tussle in terms of international levels of analysis. Haven such two conflicting countries like China and Russia coming together based on mutual economic interest against a common rival the USA is one that could be very frustrating for the US dollar with the unambiguous leverage and advantage the likes of Russia, China, Iran and Saudi Arabia have come together to give to the Chinese Yuan. With Russia in the forefront bent on the use of the Chinese Yuan instead of the US dollar in their country and in all of it's transactions and trades settlements with Latin America, Africa and Asia countries.
https://www.wsj.com/articles/russia-turns-to-chinas-yuan-in-effort-to-ditch-the-dollar-a8111457

What does this new development make for the US economy and the US dollar in the coming days and years to come.
Give your personal opinion on this development!

[1715009650]

1715009650

[Argoo]

There are also other reasons why Russia has tried to use the Chinese yuan instead of the dollar. Of particular importance here are the US sanctions imposed against Russia and the disconnection of almost all Russian banks from the SWIFT international payment system, which made it very difficult to use the dollar. In addition, Russia previously held a significant part of its foreign exchange reserves in yuan. But the Chinese yuan has fallen in price over the past year, and Russia has suffered significant losses because of this.
Experts believe that the popularity of the yuan in Russia is due to the adjustment of Russia's own policy and the constant development of Sino-Russian trade and economic cooperation. Yuan breaks trading records for
Moscow Exchange. However, the increasing role of the yuan only indicates that the currencies of unfriendly countries have been forced out or fled from Russia. Given that no one is talking about trading in rubles, it is the yuan that remains the means of payment, which allows you to somehow trade with the rest of the world, which has narrowed to China and India this year.

[CarnagexD]

The use of the yuan instead of the dollar by Russia and other countries can have some impact on the US economy depending on the reactions of other countries and financial markets. For example when yuan reduces the demand for the dollar, it can lead to a depreciation of the US currency and can make imports more expensive for US consumers and businesses. It will also make US exports more competitive in markets that use yuan. Use of yuan can also increase trade and investment flows between China and other countries which can create new opportunities for US businesses that are able to compete in these markets. If the yuan becomes more widely used in international transactions, it can become a reserve currency alongside the dollar, which can help to diversify the global financial system and reduce the dominance of the US currency, something that  is not favorable on the side of US dollar.

I think that  the power yuan has as a currency for China and Russia is still relatively limited compared to the dollar, and any shift in this direction for other countries will take time and will not be easy.

[stadus]

The use of the yuan instead of the dollar by Russia and other countries can have some impact on the US economy depending on the reactions of other countries and financial markets. For example when yuan reduces the demand for the dollar, it can lead to a depreciation of the US currency and can make imports more expensive for US consumers and businesses. It will also make US exports more competitive in markets that use yuan. Use of yuan can also increase trade and investment flows between China and other countries which can create new opportunities for US businesses that are able to compete in these markets. If the yuan becomes more widely used in international transactions, it can become a reserve currency alongside the dollar, which can help to diversify the global financial system and reduce the dominance of the US currency, something that  is not favorable on the side of US dollar.

I think that  the power yuan has as a currency for China and Russia is still relatively limited compared to the dollar, and any shift in this direction for other countries will take time and will not be easy.

This is inevitable and I think the US had it coming because they poured so much pressure towards the Russia which gave them pretty much no other choice than to lean on their ally which is China. And now, China and Russia have come together to use Yuan especially in trades and exports of black gold (oil) from Saudi Arabia.
Recently, the Russian and Chinese leader namely president Xi JinPing and Vladimir Putin have met recently in Moscow to discuss about some future developments of China-Russia relations and other strategic cooperations. In-fact it was reported that they both signed various documents about the trade and currency which will make a heavy impact towards US economy.

[Captain Corporate]

Won't work, they can try as much as they want, but it won't work. Russia has natural resources, china has cheap but quality manufacturing, but neither have a constant big economy that can sustain itself without the west. On the other hand, west could use some other nation, Bangladesh, or Pakistan or whatever they want, they don't care, and in 10 years they can get manufacturing to that level, and for the natural resources we are going towards the renewable stuff very quickly, which could make it a lot better. After all, neither the world can take it, nor the oil can continue to be found everywhere forever, it will end one day. All in all, west will continue to rule unfortunately, not that I like west neither, but I rather have the evil of west compared to evil or Russia or China.

[coupable]

https://www.wsj.com/articles/russia-turns-to-chinas-yuan-in-effort-to-ditch-the-dollar-a8111457

What does this new development make for the US economy and the US dollar in the coming days and years to come.
Give your personal opinion on this development!

We may have recently noticed an increase in the trend to reduce the use of the dollar, but this global trend had begun since the sixties of the last century and is the reason for the rise of the euro and the yuan. Recent global events have increased this trend, as Russia has become banned from using the dollar within the framework of the sanctions imposed on it. The economic war between China and America was also a direct cause.
On the other hand, we should not exaggerate too much, because some countries resorted to using the yuan because they complain of a lack of liquidity in dollars, in addition to the fact that the bulk of their reserves are in dollars, and they will not dare to exchange them for yuan in order to avoid a direct confrontation with America. According to World Bank reports, the Chinese yuan does not represent more than 12 percent of the global exchange volume.
So far, the dollar is not threatened, and I do not expect that the United States will remain a spectator if it feels that the status of the dollar is really in danger.

[Husires]

Without the existence of a parallel alliance of G7 or G20, the moves taken by China or Russia will not succeed because they represent a partial link and not an integrated economic structure far from the dollar.

Countries will succeed if global economies are affected by the dollar or the US Federal Reserve does not take into account the problems of other countries when it takes financial decisions such as raising or fixing interest, but complete replacement will not happen until after a world war.

How will the local currency be priced if the United States imposes sanctions on those countries that lead to its depreciation?

[Zaguru12]

Won't work, they can try as much as they want, but it won't work. Russia has natural resources, china has cheap but quality manufacturing, but neither have a constant big economy that can sustain itself without the west. On the other hand, west could use some other nation, Bangladesh, or Pakistan or whatever they want, they don't care, and in 10 years they can get manufacturing to that level, and for the natural resources we are going towards the renewable stuff very quickly, which could make it a lot better. After all, neither the world can take it, nor the oil can continue to be found everywhere forever, it will end one day. All in all, west will continue to rule unfortunately, not that I like west neither, but I rather have the evil of west compared to evil or Russia or China.

This isn’t about only Russia and China, I don’t think Russia is moving towards yen to make it an international currency because it will be absurd to move from one countries currency to another. Rather this are just moves taken to dampen US dominance beyond economical control probably it is has to do with politics. With the effect of US sanction on Russia many countries are seemingly wary of such future occurrences and are opening ways to other currencies to reduce the US dominance. Even Saudi Arabia has open up a way to sell their oil and gas in currencies outside dollars. Even African union has had a plan to create its on central currency to use to transact within Africa as this could strengthen local currencies against the dollar.

Nonetheless I don’t see the dollars losing much of its dominance just yet and this shouldn’t affect the country’s economy because it is not that US uses its Dollars as brokerage when every transaction takes to say that the lesser fee gotten from this brokerage will affect the economy.

[Dickiy]

Without the existence of a parallel alliance of G7 or G20, the moves taken by China or Russia will not succeed because they represent a partial link and not an integrated economic structure far from the dollar.

Countries will succeed if global economies are affected by the dollar or the US Federal Reserve does not take into account the problems of other countries when it takes financial decisions such as raising or fixing interest, but complete replacement will not happen until after a world war.

How will the local currency be priced if the United States imposes sanctions on those countries that lead to its depreciation?

That's what makes everyone think about how to get away from the influence of the US dollar and pressure, we have to realize that America always gives sanctions to countries that don't obey what they say either economically or politically, if you think about it it's quite logical for China and its allies at this time which has enough power to fight the American economy, is the right strategy in this case to gradually reduce the influence of the dollar in countries that are already capable such as Russia and China, I do not like America's non-arbitrary towards other countries and their words like god's words to do, the current situation is also the right time for those who disobey.
Countries are quite successful if they treat the masters of the dollar well, but maybe that was before, today the dollar is no longer of interest because a transaction can be declared legally valid globally if the two countries conducting the transaction agree to it.

[Oneandpure]

Russia have conflict with European countries and United State, seems they have planning for longer time move to use Yuan instead of using dollar, another good news from south asian or ASEAN zone try to use new payment system and move from dollar to other currency but still in progress not have final decision move from using dollar.

I don't know will bring positive or negative impact if many countries leave using dollar and move to other currencies kinds, however United State will not stop make war or anything else about how their currencies not adopted by many countries payment transaction. For Russia have planning last than one year after European countries suspend Russia due invasion war to Ukraine.

[be.open]

Won't work, they can try as much as they want, but it won't work. Russia has natural resources, china has cheap but quality manufacturing, but neither have a constant big economy that can sustain itself without the west. On the other hand, west could use some other nation, Bangladesh, or Pakistan or whatever they want, they don't care, and in 10 years they can get manufacturing to that level, and for the natural resources we are going towards the renewable stuff very quickly, which could make it a lot better. After all, neither the world can take it, nor the oil can continue to be found everywhere forever, it will end one day. All in all, west will continue to rule unfortunately, not that I like west neither, but I rather have the evil of west compared to evil or Russia or China.

I'm just wondering what your claim is based on? China has five thousand years of continuous national self-identity behind its back (and a development strategy for three hundred years ahead), Russia also has at least a thousand-year history. Western civilization also has its own history, Europe has a larger one (and is more closely intertwined with the history of Russia), the United States has a very small one (albeit enough to give rise to the myth of American exceptionalism). Let's look at things more realistically, the dollar has not always been the world's reserve currency, and will not always be.

[Die_empty]

Give your personal opinion on this development!

The move by these nations especially Russia, China, and Iran is 50% political and 50% economic. Russia and China are doing everything possible to gain more global political influence. That is why they are extending their hands of partnership to many nations and even offering loans and grants to developing nations all in a bid to gain more allies.

Russia was kicked out of SWIFT because of the invasion of Ukraine and China has been promoting the Yaun. China now sees this time as an opportunity to deepen its financial partnership with Russia which is desperately seeking alternative global payment systems.

Saudi Arabia is China's biggest trading partner in the Middle East and this nation is not pleased with the lack of attention it is receiving from Washington. The Kingdom is just playing its political-economic cards. I think Riyadh is just trying to show Washington that the nation has other options. Switching to the Yaun will benefit both trading partners because China is also willing to receive payments with Saudi Riyal.

For now, the dollar has no competition because it is the leading global currency. It will take many decades if not a century for China and its supporters to overtake the US dollar in the global market.

[Oilacris]

Russia have conflict with European countries and United State, seems they have planning for longer time move to use Yuan instead of using dollar, another good news from south asian or ASEAN zone try to use new payment system and move from dollar to other currency but still in progress not have final decision move from using dollar.

I don't know will bring positive or negative impact if many countries leave using dollar and move to other currencies kinds, however United State will not stop make war or anything else about how their currencies not adopted by many countries payment transaction. For Russia have planning last than one year after European countries suspend Russia due invasion war to Ukraine.

If ever that Dollar would be losing up that use case in between those known countries specially Russia and been hearing off that other western would be doing the the same which would be focusing to tie up
or making use of Yuan then it would be a sure hit and devastation to dollar but of course until it wasnt finalized then everything would really be still remain as a rumor. This is the first time in history
if ever USD would really be having that kind of situation because it wont really be that shocking that any country would really be following on what these big superpower countries
that been doing.

[tabas]

I think that this has been said many years ago and it has now come into reality.

What does this new development make for the US economy and the US dollar in the coming days and years to come.[/b]

The dominance of US dollar in the world's economy is going to be lessen by this. But let's see on how the USA will do things on their own just to make this alliance to be not impactful as it may be for their markets. Looking at it, these countries that will form this is up to something and it may not yet be threatening to the US but I guess the obvious is being seen on how aggressive they are with their moves.

[South Park]

Give your personal opinion on this development!

The move by these nations especially Russia, China, and Iran is 50% political and 50% economic. Russia and China are doing everything possible to gain more global political influence. That is why they are extending their hands of partnership to many nations and even offering loans and grants to developing nations all in a bid to gain more allies.

Russia was kicked out of SWIFT because of the invasion of Ukraine and China has been promoting the Yaun. China now sees this time as an opportunity to deepen its financial partnership with Russia which is desperately seeking alternative global payment systems.

Saudi Arabia is China's biggest trading partner in the Middle East and this nation is not pleased with the lack of attention it is receiving from Washington. The Kingdom is just playing its political-economic cards. I think Riyadh is just trying to show Washington that the nation has other options. Switching to the Yaun will benefit both trading partners because China is also willing to receive payments with Saudi Riyal.

For now, the dollar has no competition because it is the leading global currency. It will take many decades if not a century for China and its supporters to overtake the US dollar in the global market.

It is true that if China and other allied countries limit themselves to movements like this it will take a lot of time for them to rival the hegemony of the US dollar, but we need to wonder why do they feel the need to do this now? And I think they can see the weakness of the US dollar and the US in general, it seems they believe this is the golden opportunity they have been waiting for to give a strong blow to the US dollar, now whether or not they will be successful is anyone’s guess, but it seems they are preparing themselves for an open economic clash with the US and the west.

[Sarah Azhari]

Give your personal opinion on this development!

Nothing can be done if we still live in developing countries where still living aid from other (big) countries you were mentioned.
I am support and prefer them to continue a war like this when compared with a real war like Ukraine, because The economic war is not too affected in physical when compared face to face war., we still have house and do not flee to neighboring countries.

China and Russia think Dollar become a great hegemony to rule the world and print dollar at will without anything backed (gold), and because of that, they try to against that paper.

[Ozero]

I'm just wondering what your claim is based on? China has five thousand years of continuous national self-identity behind its back (and a development strategy for three hundred years ahead), Russia also has at least a thousand-year history. Western civilization also has its own history, Europe has a larger one (and is more closely intertwined with the history of Russia), the United States has a very small one (albeit enough to give rise to the myth of American exceptionalism). Let's look at things more realistically, the dollar has not always been the world's reserve currency, and will not always be.

In Russia there is not and never was a thousand-year history. She has now attacked Ukraine, among other things, because the Russian Federation wants to seize and, by forcibly annexing the territory of Ukraine, appropriate for itself the right to calculate its history with the appearance of Kievan Rus in the 9th century with its center in Kiev.
Even towards the end of the fifteenth century there was no Russian state and Russian people, but there was the Suzdal land - the land of Moksel, and later the Moscow principality, which was part of the Golden Horde - the state of the Genghisides. From the end of the thirteenth to the beginning of the eighteenth century. the people of this land were called Muscovites.
Prince Daniel, who was born in 1261, became the first appanage prince of Moscow approximately in 1277. This year can be considered the date of the formation of Muscovy, which is now called Russia. In 1319, Ivan, the fourth son of Daniel, later nicknamed Kalita, became the new Moscow prince. From that moment, Muscovy began to "grow in breadth", since then it has become famous. This is how Moscow and the Moscow principality appeared. Therefore, the history of present-day Russia does not reach the millennium.

[DrBeer]

This is what could be referred to in international politics as power tussle in terms of international levels of analysis. Haven such two conflicting countries like China and Russia coming together based on mutual economic interest against a common rival the USA is one that could be very frustrating for the US dollar with the unambiguous leverage and advantage the likes of Russia, China, Iran and Saudi Arabia have come together to give to the Chinese Yuan. With Russia in the forefront bent on the use of the Chinese Yuan instead of the US dollar in their country and in all of it's transactions and trades settlements with Latin America, Africa and Asia countries.
https://www.wsj.com/articles/russia-turns-to-chinas-yuan-in-effort-to-ditch-the-dollar-a8111457

What does this new development make for the US economy and the US dollar in the coming days and years to come.
Give your personal opinion on this development!

You probably read about the last phrase of Xi Jinping after the meeting in Moscow? He said the following: "We live in a time when we are waiting for changes that have not been seen in the last 100 years."
some were very happy, deciding that China was taking the side of "the fighters against the US and the dollar." NO !
China openly declared a couple of months ago that the world was bipolar, the world remains bipolar. And these poles of the world... USA AND China! Yes, you heard right, it is the USA and China! There is no Russia at the second pole!
China, logically, took on the role of the second pole, after it became clear that Russia is an empty shell, of which so far, of all its greatness, is only nuclear weapons from the times of the USSR. Nothing else !
And of course, China, within the framework of imperial concepts, is now gathering its satellites. More precisely, their appendages (economic, resource, political). And in order for them to be TOTALLY manageable, one thing remains to be done - to "cut off" their connection with the world economy, where "the dollar rules the ball." And to sit down, like a drug dealer, only not on drugs, but on the economy of the satellites and on the Yuan. All ! Their economies are constantly reducing dollar receipts, their economies are based on the Yuan, which means they are completely dependent on China. For one thing, China will solve the problem of inflation and giant long. Yes - if you don't know - China's external debt is almost 1.5 times larger than the American one. And debt in dollars. At the same time, China continues to increase gold reserves in USD. And not hiding it much, but actively supporting our appendages in the case of "giving up the dollar"
Wisdom and cunning are a feature of China!

[Darker45]

The process of dedollarization has been gaining momentum already. This doesn't look good for the US. The influence and power of the US dollar in global affairs is waning. The sad thing is that the strongest competitor is a currency of the enemy, not from an ally country. It would have been less troubling if the competitor is the euro or the pound or the yen, but it isn't.

The Chinese yuan is a considerable threat. Its growth is fueled not just by its strength but even more by its desire to dethrone the USD. Just recently, the BRICS alliance (Brazil, Russia, India, China, South Africa) will also start to replace the USD with the Chinese yuan.

[SyndicateLabs]

I see that the influence of the US and the dollar is gradually disappearing internationally. And I think it's a very good thing that alliances like the BRICS are showing their independence and growth, given the difficult economic situation and the barriers that the US has caused before.
I am not sure when economic competition will have to stop, but if it continues like this, it will bring other undesirable risks, possibly military war on a global scale.

[Bttzed03]

~
What does this new development make for the US economy and the US dollar in the coming days and years to come.[/b]

You can clearly see how US feels threatened with every move of China and Russia. Even Tiktok is not spared

I like to see how this turns out five to ten years from now. US and its allies are in a race with the BRICS in strengthening their influence over Asian and African countries. I am not sure but it looks like Africa has been fed up with the economic pressure and the lack of support from their former colonizers in developing their country. They seem to prefer China's friendly approach. In the middle east, I think Russia is gaining ground also.

[DrBeer]

The process of dedollarization has been gaining momentum already. This doesn't look good for the US. The influence and power of the US dollar in global affairs is waning. The sad thing is that the strongest competitor is a currency of the enemy, not from an ally country. It would have been less troubling if the competitor is the euro or the pound or the yen, but it isn't.

The Chinese yuan is a considerable threat. Its growth is fueled not just by its strength but even more by its desire to dethrone the USD. Just recently, the BRICS alliance (Brazil, Russia, India, China, South Africa) will also start to replace the USD with the Chinese yuan.

The United States, on the contrary, benefits - now there is no need to do business with a bunch of dubious countries and regimes. Give China a dollar - and it will do what it needs to, for one feel like it's in the place of the "second pole of the bipolar world"
Moreover, do not forget the most important thing - the Chinese economy is 80% dependent on exports to Western countries, and the United States is the largest buyer. Plus - China is completely dependent on US technology. Now he will sell to his "court" countries the "leftovers from his table", and they, being deprived of the dollar in reserves, will not be able to buy anything in the West themselves, but only through their "master" - CHINA! China is much more pragmatic, much more selfish, and has no "friends" - friendship with China comes down to China subordinating its friends.
I really feel sorry for the countries that will be globally cut off from the world economy....

[kryptqnick]

While China's president visiting Russia recently did show that China's willing to get closer to Russia, and China and Russia do sort of have a common rival in the USA, I don't think China will get particularly close with Russia. One thing is that Russia wants to store tactical nuclear weapons in Belarus, and China is explicitly against it. Also, I think China's playing an intermediary here, posing itself as a potential third party that may help Russia and Ukraine come to an agreement. To be an intermediary, you can't get close to either side, so partnering with Russia isn't going to roll. Moreover, China and the West have a difficult relationship, but it's one of mutual dependence. China is a manufacturer, but Western countries are the buyers of its products, at least a major part of its market. So it's not fully an enemy of the USA and isn't likely to step over some boundaries. Russia, meanwhile, probably likes its own fiat currency which is fairly strong, especially considering the heavy sanctions and a difficult economic situation caused by Russia's war against Ukraine.
So I'm not sure that they can all agree to move toward Yuan, to be honest, as there's a lot at play.

[mindrust]

This is what could be referred to in international politics as power tussle in terms of international levels of analysis. Haven such two conflicting countries like China and Russia coming together based on mutual economic interest against a common rival the USA is one that could be very frustrating for the US dollar with the unambiguous leverage and advantage the likes of Russia, China, Iran and Saudi Arabia have come together to give to the Chinese Yuan. With Russia in the forefront bent on the use of the Chinese Yuan instead of the US dollar in their country and in all of it's transactions and trades settlements with Latin America, Africa and Asia countries.
https://www.wsj.com/articles/russia-turns-to-chinas-yuan-in-effort-to-ditch-the-dollar-a8111457

What does this new development make for the US economy and the US dollar in the coming days and years to come.
Give your personal opinion on this development!

Another major blow to the US Dollar. The US sanctioned so many countries, now these countries are making their own deals between themselves and they are practically sanctioning the US back. The US Dollar is still the best currency out there but these countries aren't dumping the USD because they really want to, they have simply no other choice. They just can't make money and survive anymore if they bow down to the US.

Iran has lots of oil and the world needs oil. Russia has lots of gas and the world needs gas. What do you think these countries gonna do? Stop selling their commodities and starve to death just because some other country wanted that?

In this picture China has all the leverage over USA. Not looking good for the USD.

[Sterbens]

This is what could be referred to in international politics as power tussle in terms of international levels of analysis. Haven such two conflicting countries like China and Russia coming together based on mutual economic interest against a common rival the USA is one that could be very frustrating for the US dollar with the unambiguous leverage and advantage the likes of Russia, China, Iran and Saudi Arabia have come together to give to the Chinese Yuan. With Russia in the forefront bent on the use of the Chinese Yuan instead of the US dollar in their country and in all of it's transactions and trades settlements with Latin America, Africa and Asia countries.
https://www.wsj.com/articles/russia-turns-to-chinas-yuan-in-effort-to-ditch-the-dollar-a8111457

What does this new development make for the US economy and the US dollar in the coming days and years to come.
Give your personal opinion on this development!

America was tested with a big challenge in Russia and China openly stated that in front of all the international media. So what are the actions of the superpowers today, both Russia and China really underestimate. The use of the Yuan for transactions clearly provokes a reaction whether Biden has the power to compete in global markets amidst throwing dirt from his enemies. I think this is proof that what Putin is doing with China is nothing but wanting to bring down the existence of the US dollar. All we need to do is watch, and nothing more, as the global economy begins to march aggressively behind the facade of the Soviet Union.

[Merit.s]

I don't blame Russia on this because China has been there for Russia after the sanction of Russia from EU,and doing business with the western world due to the invasion of Ukraine. China is looking for a means to make sure its country is more influential in the world economy by making ally with Russia to support Russia's economy. If the dollar drops this will be a lesson for Americans not to see themselves as superior over any nation but work with other nation for growth in the world's economy. Maybe this was why the Chain president visited Russia last two weeks. If the yuan appreciates over dollar then America is loosing out in the world power race.

[Lida93]

~
What does this new development make for the US economy and the US dollar in the coming days and years to come.[/b]

You can clearly see how US feels threatened with every move of China and Russia. Even Tiktok is not spared

I like to see how this turns out five to ten years from now. US and its allies are in a race with the BRICS in strengthening their influence over Asian and African countries. I am not sure but it looks like Africa has been fed up with the economic pressure and the lack of support from their former colonizers in developing their country. They seem to prefer China's friendly approach. In the middle east, I think Russia is gaining ground also.

You may not be far from the truth concerning the lack of sincere developmental  support relations from the west and European countries towards her colonies but rather one tied to concealed selfish interest continuously for the past decades even after colonization thereby leading to the more and more of underdevelopment of these satellite countries of Africa and part of Asia rather than leading to fast growing economies like that of theirs it's just one of a dependence ties.

Recently one of Africa most populous nation Nigeria has shift part of it's economic relations ties to Asia with China unwavering providing relief loans and technological supports and currently gaining weight into the economy as this can be seen through the numerous infrastructural contracts that are being awarded to China companies with more imports rather focus on China than it were with the West in decades past. And if care is not taken, other African nations are convincingly going to follow in same line and this is gonna be a loss on the part of the West and Europe.

[Argoo]

While China's president visiting Russia recently did show that China's willing to get closer to Russia, and China and Russia do sort of have a common rival in the USA, I don't think China will get particularly close with Russia. One thing is that Russia wants to store tactical nuclear weapons in Belarus, and China is explicitly against it. Also, I think China's playing an intermediary here, posing itself as a potential third party that may help Russia and Ukraine come to an agreement. To be an intermediary, you can't get close to either side, so partnering with Russia isn't going to roll. Moreover, China and the West have a difficult relationship, but it's one of mutual dependence. China is a manufacturer, but Western countries are the buyers of its products, at least a major part of its market. So it's not fully an enemy of the USA and isn't likely to step over some boundaries. Russia, meanwhile, probably likes its own fiat currency which is fairly strong, especially considering the heavy sanctions and a difficult economic situation caused by Russia's war against Ukraine.
So I'm not sure that they can all agree to move toward Yuan, to be honest, as there's a lot at play.

The recent visit of the head of China to Russia did not bring what Putin expected from this meeting. As a result of this meeting, not a single agreement was signed, with the exception of two non-binding statements. Moreover, Putin immediately framed China, saying a few days after this meeting that he would transfer nuclear weapons to Belarus and thus negate China's peace initiatives.

But China has taken another step towards subordinating its interests to Russia, which will be highly dependent on this state. International sanctions are forcing Russia to use the Chinese yuan, because Russia's path to the dollar and the euro is cut off, and Russian rubles on the international market are simply toxic.

[Gyfts]

There are also other reasons why Russia has tried to use the Chinese yuan instead of the dollar. Of particular importance here are the US sanctions imposed against Russia and the disconnection of almost all Russian banks from the SWIFT international payment system, which made it very difficult to use the dollar. In addition, Russia previously held a significant part of its foreign exchange reserves in yuan. But the Chinese yuan has fallen in price over the past year, and Russia has suffered significant losses because of this.
Experts believe that the popularity of the yuan in Russia is due to the adjustment of Russia's own policy and the constant development of Sino-Russian trade and economic cooperation. Yuan breaks trading records for
Moscow Exchange. However, the increasing role of the yuan only indicates that the currencies of unfriendly countries have been forced out or fled from Russia. Given that no one is talking about trading in rubles, it is the yuan that remains the means of payment, which allows you to somehow trade with the rest of the world, which has narrowed to China and India this year.

Sanctions always backfire to some degree. It's about how well the sanctioning country can mitigate the side effects. The U.S. did not anticipate other countries following Russia and China and dumping their currency from reserves because the U.S. didn't foresee USD inflating at 40 year highs (ironic considering the money they printed in 2020-2021). So, they went heavy with sanctions/asset forfeitures, and to no ones surprise country's became concerned that USD was not stable enough.

Yuan might be better than USD in the short term, but what people don't realize is the long term strategy for China is to force dependence on Yuan and capture countries economies through this dependence. If China were to invalidate any country's reserves by not accepting Yuan, the country can bankrupt itself depending on what their reserves look like.

Bitcoin would solve the trust issue. Some politicians might learn this too late and jeopardize their economy by handing it over to Xi Jinping.

[LogitechMouse]

Just a few weeks ago, Chinese Prime Minister Xi Jin Ping went to Russia to have agreements (correct me with this one, but I've seen a video saying that it was at least 14 agreements that was signed). For sure, there was secret conversation between the 2 big countries, but I think it's pretty obvious that they are on their mission to just forget about using the Dollar, and move to another currency.

BRICS consists of Brazil, Russia, India, China, and Saudi Arabia. Saudi is the top producer of oil globally, Russia is one of the top if not the top in terms of energy, India's economy is starting to rise already, and many predicted that, they will have a better economy a decade from now. I mean just imagine these 3 countries alone, and how will it affects USA and maybe some other countries as well. I wonder what will be the aftereffects of these plans of BRICS towards US and other countries that against China and Russia primarily.

The sanctions that the US gave to Russia might be one reason why they are planning to do this aside from the fact that they really aren't in good terms already. How will this affect the US in 5 years? or in 10 years? If this will be a successful plan, I wonder what will the US be doing. I will not relate cryptocurrency with this one because it's all politics.

[Swordsoffreedom]

Won't work, they can try as much as they want, but it won't work. Russia has natural resources, china has cheap but quality manufacturing, but neither have a constant big economy that can sustain itself without the west. On the other hand, west could use some other nation, Bangladesh, or Pakistan or whatever they want, they don't care, and in 10 years they can get manufacturing to that level, and for the natural resources we are going towards the renewable stuff very quickly, which could make it a lot better. After all, neither the world can take it, nor the oil can continue to be found everywhere forever, it will end one day. All in all, west will continue to rule unfortunately, not that I like west neither, but I rather have the evil of west compared to evil or Russia or China.

It's just starting, so I won't jump to conclusions like you. I don't take sides, but I want our world to be multipolar and more egalitarian than dependent on just one country or bloc. They are not the center of the universe and do whatever they want, we need new nations to rise to balance world power to create a more just world. In the near future, the US and EU will still lead the world, but beyond that, the BRICS will be a new breeze in world politics.

[cabron]

If US will bring back the production and manufacturing companies in US soil, it wouldn't be this easy for Russia and China. But I think Trump had this plan before he was kicked by Joe.

Not everyone is on BRICS  side though so USD will not go to zero. Its a diffirrent fight this time now, its not just military but economics and they are losing in both these. Catching up will be a struggle while one by one the world unites for Yuan.

[mindrust]

If US will bring back the production and manufacturing companies in US soil, it wouldn't be this easy for Russia and China. But I think Trump had this plan before he was kicked by Joe.

Not everyone is on BRICS  side though so USD will not go to zero. Its a diffirrent fight this time now, its not just military but economics and they are losing in both these. Catching up will be a struggle while one by one the world unites for Yuan.

The US can’t bring the production back from China because they can’t afford pay their employees. The US is broke. They moved the production from the US to China years ago for this exact reason. They can’t pay. They thought, “Why should we pay the American employees $3k, while the Chinaman is doing the same work for us for $1k?” And that’s how the great empire of the United States lost its dollars&power to China.

If China stops sending their ships to the US, the US will go back to the stone age.

[DrBeer]

If US will bring back the production and manufacturing companies in US soil, it wouldn't be this easy for Russia and China. But I think Trump had this plan before he was kicked by Joe.

Not everyone is on BRICS  side though so USD will not go to zero. Its a diffirrent fight this time now, its not just military but economics and they are losing in both these. Catching up will be a struggle while one by one the world unites for Yuan.

The US can’t bring the production back from China because they can’t afford pay their employees. The US is broke. They moved the production from the US to China years ago for this exact reason. They can’t pay. They thought, “Why should we pay the American employees $3k, while the Chinaman is doing the same work for us for $1k?” And that’s how the great empire of the United States lost its dollars&power to China.

If China stops sending their ships to the US, the US will go back to the stone age.

Here you are wrong. To begin with, I recommend studying the export-import structure of the interaction between China and the United States.

I'll try to make it very simple.

For China USA it is:
The largest market for their products.
An almost monopoly supplier of high technology, thanks to which the Chinese industry of low-quality cooperative consumer goods has turned into an acceptable commodity for Western consumers.

For the US, China is:
A supplier of inexpensive all goods for the everyday life of the population.
A production area where it is cheap for American companies, high-tech American devices are assembled using American technology.

Their financial relationship is built on the dollar, because. The United States does not need the yuan from the word at all, and the dollar is CRITICALLY NECESSARY for China, because. developed countries for yuan, rupees, rubles - do not sell what China needs.


China is now doing everything to bind convenient raw material appendages to itself, make their economies dependent on China and the Yuan, remove the dollar from their pockets, and make money on it. Although the first task is not right - to migrate Chinese inflation and debts into the economies of their subordinates.
Think about this too - why didn’t the BRICS make their own monocurrency, like the Euro, for example, and China forced everyone to trade for the yuan?

PS And yes - the United States is withdrawing high-tech industries from China, and has imposed a ban on creating them there in the coming years ... Google the topic

[gaston castano]

it seems that China's strategy is quite good, they are cooperating but Russia has to use yuan for transactions, I think China will be superior, but will the US be silent about it, maybe in the near future things will change. if it continues like this I think the US dollar will weaken.

[jossiel]

It's interesting to see the development of this alliance and I've been seeing a lot of commentary videos that USA's dollar is being said that it's in the brink of death.

We still have to see the process on how things will go. Yeah, BRICS seems to be a powerful alliance that will revolutionize the a portion of world's economy.

But don't forget that USA also has some alliance in the EU and they have been in their place for so long and that's why they're doubling the effort of doing stuff right now.

I'm just stating what I observe and whoever wins this race, we'll see then. It's also said by around 2030, it's gonna be China's time to shine and will be on top. With all of these speculations and thoughts, we can just say what we're thinking but we will never know the outcome of its actuality.

[pooya87]

About half the world is abandoning US Dollar but they are not all filling the gap left with Yuan. For example BRICS is defining its own currency, ASEAN members are using their own fiat currencies to trade among themselves, and a lot more dollar dumping cases that I post in my topic when I find.

But also there are many countries replacing it with Yuan. The most recent case is surprisingly France

Things are getting so bad that US congress members are speaking out
https://twitter.com/RepMTG/status/1640003690638524418

[TheGreatPython]

This is what could be referred to in international politics as power tussle in terms of international levels of analysis. Haven such two conflicting countries like China and Russia coming together based on mutual economic interest against a common rival the USA is one that could be very frustrating for the US dollar with the unambiguous leverage and advantage the likes of Russia, China, Iran and Saudi Arabia have come together to give to the Chinese Yuan. With Russia in the forefront bent on the use of the Chinese Yuan instead of the US dollar in their country and in all of it's transactions and trades settlements with Latin America, Africa and Asia countries.

I've read somewhere a couple of days ago that China is making international trade with a number of countries using its own currency instead of the US Dollar and the reason they've given for this is to cut the costs of the trade, which can be true but we all know that it isn't the main reason behind this, there is probably a plot behind all this.

But, I believe that the US Dollar has a pretty strong influence on the world economy and is used almost everywhere, online as well, so it won't be an easy task for any country or a couple of countries to try and shatter this influence.

[be.open]

But, I believe that the US Dollar has a pretty strong influence on the world economy and is used almost everywhere, online as well, so it won't be an easy task for any country or a couple of countries to try and shatter this influence.

The problem for the US is that it is not necessary for China, Russia or anyone else to completely eliminate this influence, even the emerging downward trend in influence is very painful for the US. When the dollar's share of international trade shrinks, you can no longer routinely print trillions and export inflation to emerging economies. Now the inflation boomerang is coming back to the US.

[siniminomorocomunisakito]

But, I believe that the US Dollar has a pretty strong influence on the world economy and is used almost everywhere, online as well, so it won't be an easy task for any country or a couple of countries to try and shatter this influence.

The problem for the US is that it is not necessary for China, Russia or anyone else to completely eliminate this influence, even the emerging downward trend in influence is very painful for the US. When the dollar's share of international trade shrinks, you can no longer routinely print trillions and export inflation to emerging economies. Now the inflation boomerang is coming back to the US.

It is true that the US's influence in the global economy is tied to the dominance of the US dollar as the world's reserve currency. The decline of the dollar's share in international trade poses a significant challenge to the US, as it limits its ability to export inflation to emerging economies by printing trillions. This results in the boomerang effect, where inflation returns to the US, causing economic pain.

I Think As the world becomes increasingly multipolar, the US will need to adapt its monetary policies and engage in constructive dialogue with other countries to maintain its position in the global economy.

[DrBeer]

But, I believe that the US Dollar has a pretty strong influence on the world economy and is used almost everywhere, online as well, so it won't be an easy task for any country or a couple of countries to try and shatter this influence.

The problem for the US is that it is not necessary for China, Russia or anyone else to completely eliminate this influence, even the emerging downward trend in influence is very painful for the US. When the dollar's share of international trade shrinks, you can no longer routinely print trillions and export inflation to emerging economies. Now the inflation boomerang is coming back to the US.

It is true that the US's influence in the global economy is tied to the dominance of the US dollar as the world's reserve currency. The decline of the dollar's share in international trade poses a significant challenge to the US, as it limits its ability to export inflation to emerging economies by printing trillions. This results in the boomerang effect, where inflation returns to the US, causing economic pain.

I Think As the world becomes increasingly multipolar, the US will need to adapt its monetary policies and engage in constructive dialogue with other countries to maintain its position in the global economy.

In fact, the so-called "going countries away from the dollar" is just China's game. The game is that he has brought together a group of, no offense, not very smart countries, and replaces their international currency reserves, from a highly liquid dollar to his yuan. China has several goals here:
1. "Export inflation" of the yuan to other countries. Now they will pay for the depreciation of the yuan, at the expense of their citizens.
2. The flow of dollar reserves from non-smart countries to the bins of China. The dollar is critical for China, and China's rejection of the dollar is a synonym for "China is returning to the 70s of the last century. Peripheral, backward, agrarian country producing cheap consumer goods"
3. China recognizes the world as bipolar, where the first pole is the US, the second is China. And China needs to create a "servant environment, within the framework of the usual concept of empire. Someone will be a raw material appendage, and someone will be a" tame dog "who, having no dollar, i.e. the opportunity to buy on a civilized market, will be forced to buy only from China. And for this, all the "servants" of China should receive income and pay only in Yuan, and as a matter of fact, they should not have a dollar in their reserves.

If everything goes as China plans, in 5 years you will see how "partners in the fight against the dollar" will begin to squeal and return again to the international open economy and markets, where the currency of mutual settlements is the dollar. True, not everyone will return ... Someone will completely lose their independence and become a "region of China"

[slapper]

But, I believe that the US Dollar has a pretty strong influence on the world economy and is used almost everywhere, online as well, so it won't be an easy task for any country or a couple of countries to try and shatter this influence.

The problem for the US is that it is not necessary for China, Russia or anyone else to completely eliminate this influence, even the emerging downward trend in influence is very painful for the US. When the dollar's share of international trade shrinks, you can no longer routinely print trillions and export inflation to emerging economies. Now the inflation boomerang is coming back to the US.

It is true that the US's influence in the global economy is tied to the dominance of the US dollar as the world's reserve currency. The decline of the dollar's share in international trade poses a significant challenge to the US, as it limits its ability to export inflation to emerging economies by printing trillions. This results in the boomerang effect, where inflation returns to the US, causing economic pain.

I Think As the world becomes increasingly multipolar, the US will need to adapt its monetary policies and engage in constructive dialogue with other countries to maintain its position in the global economy.

In fact, the so-called "going countries away from the dollar" is just China's game. The game is that he has brought together a group of, no offense, not very smart countries, and replaces their international currency reserves, from a highly liquid dollar to his yuan. China has several goals here:
1. "Export inflation" of the yuan to other countries. Now they will pay for the depreciation of the yuan, at the expense of their citizens.
2. The flow of dollar reserves from non-smart countries to the bins of China. The dollar is critical for China, and China's rejection of the dollar is a synonym for "China is returning to the 70s of the last century. Peripheral, backward, agrarian country producing cheap consumer goods"
3. China recognizes the world as bipolar, where the first pole is the US, the second is China. And China needs to create a "servant environment, within the framework of the usual concept of empire. Someone will be a raw material appendage, and someone will be a" tame dog "who, having no dollar, i.e. the opportunity to buy on a civilized market, will be forced to buy only from China. And for this, all the "servants" of China should receive income and pay only in Yuan, and as a matter of fact, they should not have a dollar in their reserves.

If everything goes as China plans, in 5 years you will see how "partners in the fight against the dollar" will begin to squeal and return again to the international open economy and markets, where the currency of mutual settlements is the dollar. True, not everyone will return ... Someone will completely lose their independence and become a "region of China"

Oh, China, you sneaky little devil! Trying to replace the mighty dollar with your yuan? Good luck with that! You think you can just bully the non-smart countries into using your currency and exporting your inflation? Think again!

But, let's be real here, who needs a reserve currency anyway? Why not just use Pokemon cards or Chuck E. Cheese tokens? That would be way more fun and exciting! And, if China wants to be the emperor of the world, why not just declare themselves the new Galactic Empire and force everyone to use Galactic Credits? I'd totally sign up for that!

[Bananington]

What does this new development make for the US economy and the US dollar in the coming days and years to come.[/b]
Give your personal opinion on this development!

The United States will soon loose the advantage it has with economic warfare. Many countries have observed how quickly the United States issues out economic sanctions and how deadly an effect it has had on the economies of the receiving country because of the dependence of these countries on the US dollar for international transactions. Russia is an example of one and how sanctions generally affected all its citizens.

This new development will be widespread soon because many countries want to reduce that advantage that the US has over them.

[Hispo]

To be honest, I don't think the Chinese currency has much future here in Latin America, historically we are under the sphere of influence of the American Dollar and the economic policies taken in Washington. I don't see why Brazil, Colombia, Peru or Chile would adopt the Yuan.

The only realistic candidates for it would be Argentina and Venezuela, since both have had suffered inflation problems to this day an the Yuan is relatively strong. In the case of Venezuela, people prefer to hold Dollars (for the influential aspects I already mentioned) and the government is never serious when they talk about dishing USD in favor of currencies from ally super-powers. I am very skeptical this has some room in Latam.

[Silberman]

What does this new development make for the US economy and the US dollar in the coming days and years to come.[/b]
Give your personal opinion on this development!

The United States will soon loose the advantage it has with economic warfare. Many countries have observed how quickly the United States issues out economic sanctions and how deadly an effect it has had on the economies of the receiving country because of the dependence of these countries on the US dollar for international transactions. Russia is an example of one and how sanctions generally affected all its citizens.

This new development will be widespread soon because many countries want to reduce that advantage that the US has over them.

It is interesting how the threat of a weapon many times is stronger than the weapon itself, the US when a country does something they do not like they use those sanctions to punish the country and force them to change their policies, however this has created the desire on many of those countries to create ways to avoid or reduce the impact of that weapon, so not only this will affect the power of those sanctions but at the same time it will weaken the dollar, a thing that is kind of dangerous at the moment.

[zasad@]

But, I believe that the US Dollar has a pretty strong influence on the world economy and is used almost everywhere, online as well, so it won't be an easy task for any country or a couple of countries to try and shatter this influence.

The problem for the US is that it is not necessary for China, Russia or anyone else to completely eliminate this influence, even the emerging downward trend in influence is very painful for the US. When the dollar's share of international trade shrinks, you can no longer routinely print trillions and export inflation to emerging economies. Now the inflation boomerang is coming back to the US.

It is true that the US's influence in the global economy is tied to the dominance of the US dollar as the world's reserve currency. The decline of the dollar's share in international trade poses a significant challenge to the US, as it limits its ability to export inflation to emerging economies by printing trillions. This results in the boomerang effect, where inflation returns to the US, causing economic pain.

I Think As the world becomes increasingly multipolar, the US will need to adapt its monetary policies and engage in constructive dialogue with other countries to maintain its position in the global economy.

In fact, the so-called "going countries away from the dollar" is just China's game. The game is that he has brought together a group of, no offense, not very smart countries, and replaces their international currency reserves, from a highly liquid dollar to his yuan. China has several goals here:
1. "Export inflation" of the yuan to other countries. Now they will pay for the depreciation of the yuan, at the expense of their citizens.
2. The flow of dollar reserves from non-smart countries to the bins of China. The dollar is critical for China, and China's rejection of the dollar is a synonym for "China is returning to the 70s of the last century. Peripheral, backward, agrarian country producing cheap consumer goods"
3. China recognizes the world as bipolar, where the first pole is the US, the second is China. And China needs to create a "servant environment, within the framework of the usual concept of empire. Someone will be a raw material appendage, and someone will be a" tame dog "who, having no dollar, i.e. the opportunity to buy on a civilized market, will be forced to buy only from China. And for this, all the "servants" of China should receive income and pay only in Yuan, and as a matter of fact, they should not have a dollar in their reserves.

If everything goes as China plans, in 5 years you will see how "partners in the fight against the dollar" will begin to squeal and return again to the international open economy and markets, where the currency of mutual settlements is the dollar. True, not everyone will return ... Someone will completely lose their independence and become a "region of China"

If you asked me 10-15 years ago what to keep your savings in, I would answer that in dollars. Now I wouldn't say that.
If you look at the statistics, the US produces 18% of world GDP, and consumes 2 times more because it prints dollars. The USA has a big debt, but it doesn't matter because the dollar printer is installed in the USA.
Every country wants to repeat this trick, but resources are limited. If it gets better in China, it will get worse in the US and Europe. China and India are half of the world's population, and it is impossible to ignore them.

[DrBeer]

If you asked me 10-15 years ago what to keep your savings in, I would answer that in dollars. Now I wouldn't say that.
If you look at the statistics, the US produces 18% of world GDP, and consumes 2 times more because it prints dollars. The USA has a big debt, but it doesn't matter because the dollar printer is installed in the USA.
Every country wants to repeat this trick, but resources are limited. If it gets better in China, it will get worse in the US and Europe. China and India are half of the world's population, and it is impossible to ignore them.

Keeping only in dollars was stupid even 15 years ago - diversification is what should be a mandatory approach in finance!

Concerning debts - I beg you! This topic has not looked attractive for a long time I explain - China has a debt almost 2 times MORE than that of the USA! At the same time, China can only print the yuan! That's exactly what the network is the reason for the inflated hysteria "we give up the dollar
Because China needs to EXPORT its inflation, and financial problems, to less smart "friends"
You may not have noticed it yet, but very soon everyone will see it. China's goal:
- "attach" their "friends" to the Yuan so that they "suck" China's inflation for their money.
- provide RMB DEPENDENT consumer markets
- continue to print yuan to cover their BIG internal problems, and secure their economy from the consequences of the "printing press", at the expense of "friends"
- remove the dollar from the economy of "friends" .. into YOUR pocket. And in the future to receive dollars, due to the role of "customs" between the normal world market and a bunch of fools who have only yuan, and they cannot buy anything in the USA, for example. The US does not sell for yuan. And here the role of the exchanger will be performed by China, earning DOLLARS

Regarding "China and India make up half of the world's population" is just a number. There is a huge gap between quantity and quality. If we lived in the Middle Ages - the number would have mattered, but now the world has moved away from primitive measures of "greatness", such as the number of population. Here is an example of "greatness" too - Russia 40% of the world's fossil reserves, the largest country in terms of territory .. And what is the result? In fact, an embittered, backward, depressive territory! For example, China, without Western technologies, will again slide into the "third world agricultural country" as it was 30-40 years ago ... Even if it has 2 times more population than in India

[rby]

This is what could be referred to in international politics as power tussle in terms of international levels of analysis. Haven such two conflicting countries like China and Russia coming together based on mutual economic interest against a common rival the USA is one that could be very frustrating for the US dollar with the unambiguous leverage and advantage the likes of Russia, China, Iran and Saudi Arabia have come together to give to the Chinese Yuan. With Russia in the forefront bent on the use of the Chinese Yuan instead of the US dollar in their country and in all of it's transactions and trades settlements with Latin America, Africa and Asia countries.
https://www.wsj.com/articles/russia-turns-to-chinas-yuan-in-effort-to-ditch-the-dollar-a8111457

What does this new development make for the US economy and the US dollar in the coming days and years to come.
Give your personal opinion on this development!

We all know that there is some kind of supremacy war between China and United States of America.
But this one is far from want China can win with their numerous strategies. The difficulty that China always face in achieving whatever they strategize is because United States has so many allies and friends around the world, this makes Chinese intentions always got frustrated at a particular time.
I have known about some countries who had decided to use the Chinese currency as their base currency in the exchange market but those plans did not work out at the long run because majority of these countries were the countries from the underdeveloped side of the world. So they always request aid and financial assistance for United States and the international monetary fund. That is why those plans were always frustrated at a particular time and I don't think this will be an exception.

[ElmedoRator]

Historically we have seen such interactions, when the opponent's opponent was a good ally. And the developments in the world over the years, the fact that countries like Russia and China do not want the US position to control everything. Personally, I see the escalating issues that may lead to China soon taking on the role of a country that directly affects and affects future problems in the world. Now the big event about the tension between Russia and Ukraine, but in my opinion the war now can widen the scope if some countries still keep the conservative stance.

[zasad@]

If you asked me 10-15 years ago what to keep your savings in, I would answer that in dollars. Now I wouldn't say that.
If you look at the statistics, the US produces 18% of world GDP, and consumes 2 times more because it prints dollars. The USA has a big debt, but it doesn't matter because the dollar printer is installed in the USA.
Every country wants to repeat this trick, but resources are limited. If it gets better in China, it will get worse in the US and Europe. China and India are half of the world's population, and it is impossible to ignore them.

Keeping only in dollars was stupid even 15 years ago - diversification is what should be a mandatory approach in finance!

Concerning debts - I beg you! This topic has not looked attractive for a long time I explain - China has a debt almost 2 times MORE than that of the USA! At the same time, China can only print the yuan! That's exactly what the network is the reason for the inflated hysteria "we give up the dollar
Because China needs to EXPORT its inflation, and financial problems, to less smart "friends"
You may not have noticed it yet, but very soon everyone will see it. China's goal:
- "attach" their "friends" to the Yuan so that they "suck" China's inflation for their money.
- provide RMB DEPENDENT consumer markets
- continue to print yuan to cover their BIG internal problems, and secure their economy from the consequences of the "printing press", at the expense of "friends"
- remove the dollar from the economy of "friends" .. into YOUR pocket. And in the future to receive dollars, due to the role of "customs" between the normal world market and a bunch of fools who have only yuan, and they cannot buy anything in the USA, for example. The US does not sell for yuan. And here the role of the exchanger will be performed by China, earning DOLLARS

Regarding "China and India make up half of the world's population" is just a number. There is a huge gap between quantity and quality. If we lived in the Middle Ages - the number would have mattered, but now the world has moved away from primitive measures of "greatness", such as the number of population. Here is an example of "greatness" too - Russia 40% of the world's fossil reserves, the largest country in terms of territory .. And what is the result? In fact, an embittered, backward, depressive territory! For example, China, without Western technologies, will again slide into the "third world agricultural country" as it was 30-40 years ago ... Even if it has 2 times more population than in India

Thanks to diversification, I was left with the old British pounds. Now I admire them
All countries want to live at the expense of others, and China is no exception.

Based on what data do you talk about China's debt?
https://en.wikipedia.org/wiki/List_of_countries_by_external_debt
How far is Russia behind the US and Europe? Gay parades are banned in Russia. We don't need it in Russia 

[Uruhara]

Actually, of course, we all have to realize today that the economic movement in Asia has been growing for the better over time. And China as the leading country in the economy in Asia is now starting to strengthen their economic resilience to more countries outside of Asia. And China is also trying to reduce their dependence on the US Dollar in international trade by making cooperation with more countries that have interests in China and using the Yuan as currency in their transactions. I even read news about France buying Natural Gas using Chinese currency, namely Yuan. I forgot to save the source of the news that I read. maybe I'll pin it when I find it again.

[woez]

Without the existence of a parallel alliance of G7 or G20, the moves taken by China or Russia will not succeed because they represent a partial link and not an integrated economic structure far from the dollar.

Countries will succeed if global economies are affected by the dollar or the US Federal Reserve does not take into account the problems of other countries when it takes financial decisions such as raising or fixing interest, but complete replacement will not happen until after a world war.

How will the local currency be priced if the United States imposes sanctions on those countries that lead to its depreciation?

The issue of switching from the US dollar to other currencies, such as the Chinese yuan, is a complex one involving many factors beyond just economic alliances. While it is true that countries such as Russia and China are trying to move away from the dollar, this move will not succeed without a greater global shift away from the dollar as the world's reserve currency.

Additionally, the issue of how local currencies will be valued in the face of US sanctions is a real concern, and underscores the challenges countries face in trying to move away from the dollar and it is good to note that any move away from the dollar will require careful planning and collaboration between countries, as well as broader shifts in the global economic fabric.

[FrozenBit]

I see that Russia and other countries switching to using RMB instead of dollars can be interpreted as wanting to reduce their dependence on the US currency and create diversification in international transactions. This can also help promote economic cooperation among regional countries and reduce dependence on Western Europe and North America. However, converting currencies is not easy and requires careful economic, political and legal preparation. In addition, the transition also needs to be done simultaneously with the agreement of the stakeholders and adjust the transition time to avoid adversely affecting the economies of the countries.

[bangjoe]

Without the existence of a parallel alliance of G7 or G20, the moves taken by China or Russia will not succeed because they represent a partial link and not an integrated economic structure far from the dollar.

Countries will succeed if global economies are affected by the dollar or the US Federal Reserve does not take into account the problems of other countries when it takes financial decisions such as raising or fixing interest, but complete replacement will not happen until after a world war.

How will the local currency be priced if the United States imposes sanctions on those countries that lead to its depreciation?

The G7 and G20 alliances have indeed had a significant impact on economic development and the influence of Russia and China in the international economy, especially in commodity trading, which aims to suppress the chain of dollar hegemony. I seem to have another picture in terms of the Russia-Ukraine conflict and the economic war between China and the US, it shows some of the shifting rhythms of the dollar and the resistance to the dollar initiated by China and Russia.

I thought that in the past, although maybe today it still applies to several countries with the influence of the dollar in the international economic world to advance the country, but after there are candidates who can be said to be capable of fighting US domination in the international economy, today some other countries have let go because maybe the dollar is no longer effective in helping the development of the country.
Yes, it will definitely happen soon, but will America or the Fed be that strong in imposing sanctions, after all, in fact, what sanctions have been imposed on the Russian state, they are still growing and there are still many countries that are cooperating with Russia and need them.

[Smack That Ace]

Another not-so-good news for USD. An Asian country is Malaysia, after declaring that it does not want to depend on the USD, recently, they are also been negotiating with China on establishing the Asian Monetary Fund.

The US domination is coming to an end, I know there are many US and Western fanatics, but I would like to reiterate no empire can stand aloft forever. There will come a time when another force replaces it, and everything begins.
https://www.bloomberg.com/news/articles/2023-04-04/malaysia-china-to-discuss-asian-fund-to-cut-dollar-dependency#xj4y7vzkg

[DrBeer]

....
Thanks to diversification, I was left with the old British pounds. Now I admire them
All countries want to live at the expense of others, and China is no exception.

Based on what data do you talk about China's debt?
https://en.wikipedia.org/wiki/List_of_countries_by_external_debt
How far is Russia behind the US and Europe? Gay parades are banned in Russia. We don't need it in Russia  

I answer:


About diversification - you can expand more
Dollars, euros, Swiss francs (I like it very much), gold, crypto, liquid real estate, land. This is my take on this solution


1. China, public debt to GDP - 76.9%
2. In physical terms - 2452.8 billion USD

On the one hand, China's external debt has SIGNIFICANTLY decreased since 2109
https://en.wikipedia.org/wiki/%D0%A1%D0%BF%D0%B8%D1%81%D0%BE%D0%BA_%D1%81%D1%82%D1%80%D0 %B0%D0%BD_%D0%BF%D0%BE_%D0%B2%D0%BD%D0%B5%D1%88%D0%BD%D0%B5%D0%BC%D1%83_%D0%B4 %D0%BE%D0%BB%D0%B3%D1%83

On the other hand, he "transformed".
The total volume of loans in the non-financial sector of China in the second quarter of 2022 reached $51.87 trillion, according to the Bank for International Settlements (BIS). The level of debt is almost three times the country's GDP (295%) and is the highest for China since 1995.
https://stats.bis.org/statx/srs/table/f1.1

This, of course, is not correct to refer to the external debt of the state, but this is the DEBT of the Chinese economy.

At the same time, you probably know that in 2022, a huge scandal and crisis broke out in China in the construction sector, which led to huge problems in other sectors of the economy, the total amount of unfulfillable obligations for only 3 leading construction companies amounted to more than 13 trillion dollars.

If compared with the external debt of the United States, then it is very much leveled by the obligations of other countries to the United States, where the balance is in favor of the United States.

And again - the debts of an export-oriented economy, which depends on the Western consumer market, and Western technologies, it is not correct to compare with the debt of the world's leading country in all respects, I agree with the nominal size of the public debt too But the United States can "print" as many dollars as they need, the surplus will be consumed by the same China, India and many other countries, whose economy without the dollar will stagnate and degrade.

Here I will add - this is in a situation with a functioning US economy. If in 2019-2021, after the covid pandemic, the US economy really "sank", and the printing of money led to noticeable inflation, now the economy is on its feet, and there are no such problems.


Regarding gay parades banned in Russia. Are these all indicators of greatness? Does Russia have any other competitive advantages? It looks like it's the only one!

https://www.tripadvisor.ru/Attractions-g298484-Activities-c20-t103-Moscow_Central_Russia.html - these are those that are officially on tripadvisor, in fact - much more And this is the situation in all cities of Russia up to the far north: )

By the way, there were interesting statistics of PornHub - in the top three / top five in terms of visiting gay content, there were ... residents of Russia. Missed parades - pay attention

[nimogsm]

I think it’s too early to draw conclusions, since the issue is actually quite complicated. As far as I understand, everything is at the contract stage but not yet applied. It will be about commodities that are mainly supplied by Russia, what payments will be for other services and sales is not completely clear. There is also a factor of sanctions that quite strongly affects their external economy and new packages can be announced at any time. Therefore, it is very difficult to predict what effect will be final in this situation.

[cabron]

Is Gay parade an advantage for a country?
Human rights laws is really messing up everything in this world. The gays got more rights to get fairness and justice and are allowed to party naked on the streets while people in Iraq can not even shout justice for those who are bombed.

Dedollarization is happening that even the NATO members are visiting China to make arrangements. Dollar is strong but its also the reason why they are ditching it.

In a way, the government will not force people to use CBDC after all, people would rather be using FEDnow or the CBDC than using the BRIC'S new currency.

[eaLiTy]

~
Oh, China, you sneaky little devil! Trying to replace the mighty dollar with your yuan? Good luck with that! You think you can just bully the non-smart countries into using your currency and exporting your inflation? Think again!

You better need to evaluate facts, dollar was considered as a global currency when they were literally backed by gold and it all happened after the second world war. Now look at the economical situation of US, banks failing left and right and the government is printing money out of thin air for decades and why would the rest of the world suffer due to their dumb economic policies and dollar is a tool to implement sanctions because they are not dancing to their tone, it has to change and change is happening with Saudi settling oil money in local currencies and there is a proposed gold backed currency in talks by BRICS.

US had the power for the longer period and before that it was the UK, the power dynamics changes if you look at history.

 We already suffered badly on a global scale in 2007 because of the dumb policies and we cannot take chance all the time and it is time to shift the power dynamics as they have many inner issues to sort before lecturing the world.

[Sarah Azhari]

What does this new development make for the US economy and the US dollar in the coming days and years to come

Maybe Dollar will be going to bankrupt?, but it looks impossible for the next 2 or 5 years because the dollar is ingrained in each country in the world. Other countries will not be easy to move or change the currency from Dollar to Yuan, As we know US won't just let those countries become world power to replace US hegemony so that mission will get obstacles from allies.

But if happen, and Yuan uses the same way (printing money without underlying) the result is the same as Dollar. there is no change whatsoever for developing countries.

[pooya87]

To be honest, I don't think the Chinese currency has much future here in Latin America, historically we are under the sphere of influence of the American Dollar and the economic policies taken in Washington. I don't see why Brazil, Colombia, Peru or Chile would adopt the Yuan.

Dumping dollar doesn't mean replacing it with Yuan. It just means different countries would stop using dollar as reserve currency and that would in time destroy US economy. Countries like Brazil, Colombia, etc. are also not adopting Yuan, they are using Yuan to trade with China replacing dollar and they are using other currencies to trade with other countries again replacing dollar in all those trades.

[Argoo]

I see that Russia and other countries switching to using RMB instead of dollars can be interpreted as wanting to reduce their dependence on the US currency and create diversification in international transactions. This can also help promote economic cooperation among regional countries and reduce dependence on Western Europe and North America. However, converting currencies is not easy and requires careful economic, political and legal preparation. In addition, the transition also needs to be done simultaneously with the agreement of the stakeholders and adjust the transition time to avoid adversely affecting the economies of the countries.

Russia had high hopes for Chinese support in its war to take over Ukraine, as well as for Chinese yuan to support the Russian economy, but these hopes were not destined to come true.

The results of Xi Jinping's visit to Russia turned out to be not even zero, but negative for her. China does not give Russia anything and will not even allow North Korea to help the Russians. Moreover, it became known that the Chinese Central Bank banned the import of cash yuan into Russia. Thus, Xi Jinping begins to slowly move away from the loser and criminal Putin, so as not to get himself dirty.

China is systematically distancing itself from the Russian Federation, cutting it off from itself, and the inhabitants of the Kremlin and ordinary Putinists are simply numb with horror looking at what is happening. Because all their hopes were connected with the People's Republic of China and some kind of lend-lease from there. In Russia, they said that without China it would be very difficult for them, in general, they would not be able to pull through without China. Now it turns out that they will not be pulled out.

[DrBeer]

Is Gay parade an advantage for a country?
Human rights laws is really messing up everything in this world. The gays got more rights to get fairness and justice and are allowed to party naked on the streets while people in Iraq can not even shout justice for those who are bombed.

Dedollarization is happening that even the NATO members are visiting China to make arrangements. Dollar is strong but its also the reason why they are ditching it.

In a way, the government will not force people to use CBDC after all, people would rather be using FEDnow or the CBDC than using the BRIC'S new currency.

Gay parades are not an advantage, I completely agree here. But their ban is not an indicator of greatness!
There are a lot of nuances in this subtle topic. For example, why does an open form of manifestation bother you, but, for example, hidden, but actually legalized pedophilia - no? Or, for example, are you not worried that many opponents of gay parades frolic with young boys in the baths?

By the way, this is also characteristic of those who squeal "give up the dollar", but at the same time stuff their pockets with dollars, hoping that no one will notice

For example, I'm more worried about moral monsters who are trying to get their ideas into my life, into my country, than people of a different orientation who do not force anyone to anything.

Concerning trips of representatives of NATO members to China. So their purpose of the trip is not about the dollar. Their purpose of the trip is to decide what to do with moral monsters, imposing their dubious values on neighboring countries, killing the population of these neighboring countries, under the idea of saving it is not clear what, and as a result, trying to unleash a third world war

[niko053]

how to legalize it through an individual entrepreneur?

[Ozero]

The process of dedollarization has been gaining momentum already. This doesn't look good for the US. The influence and power of the US dollar in global affairs is waning. The sad thing is that the strongest competitor is a currency of the enemy, not from an ally country. It would have been less troubling if the competitor is the euro or the pound or the yen, but it isn't.

The Chinese yuan is a considerable threat. Its growth is fueled not just by its strength but even more by its desire to dethrone the USD. Just recently, the BRICS alliance (Brazil, Russia, India, China, South Africa) will also start to replace the USD with the Chinese yuan.

In Russia, there is simply no other choice but to switch to Chinese yuan. In connection with the imposed international sanctions, Russia is cut off from the dollar and the euro. Rubles are no longer attractive to other countries and are even somewhat toxic. Therefore, Russia had to choose another currency. In this regard, they hoped for help from China, so the choice was made on the yuan. But in Russia with the Chinese yuan can lose. Let's see what will happen next.

[zasad@]

....
Thanks to diversification, I was left with the old British pounds. Now I admire them
All countries want to live at the expense of others, and China is no exception.

Based on what data do you talk about China's debt?
https://en.wikipedia.org/wiki/List_of_countries_by_external_debt
How far is Russia behind the US and Europe? Gay parades are banned in Russia. We don't need it in Russia  

I answer:


About diversification - you can expand more
Dollars, euros, Swiss francs (I like it very much), gold, crypto, liquid real estate, land. This is my take on this solution


1. China, public debt to GDP - 76.9%
2. In physical terms - 2452.8 billion USD

On the one hand, China's external debt has SIGNIFICANTLY decreased since 2109
https://en.wikipedia.org/wiki/%D0%A1%D0%BF%D0%B8%D1%81%D0%BE%D0%BA_%D1%81%D1%82%D1%80%D0 %B0%D0%BD_%D0%BF%D0%BE_%D0%B2%D0%BD%D0%B5%D1%88%D0%BD%D0%B5%D0%BC%D1%83_%D0%B4 %D0%BE%D0%BB%D0%B3%D1%83

On the other hand, he "transformed".
The total volume of loans in the non-financial sector of China in the second quarter of 2022 reached $51.87 trillion, according to the Bank for International Settlements (BIS). The level of debt is almost three times the country's GDP (295%) and is the highest for China since 1995.
https://stats.bis.org/statx/srs/table/f1.1

This, of course, is not correct to refer to the external debt of the state, but this is the DEBT of the Chinese economy.

At the same time, you probably know that in 2022, a huge scandal and crisis broke out in China in the construction sector, which led to huge problems in other sectors of the economy, the total amount of unfulfillable obligations for only 3 leading construction companies amounted to more than 13 trillion dollars.

If compared with the external debt of the United States, then it is very much leveled by the obligations of other countries to the United States, where the balance is in favor of the United States.

And again - the debts of an export-oriented economy, which depends on the Western consumer market, and Western technologies, it is not correct to compare with the debt of the world's leading country in all respects, I agree with the nominal size of the public debt too But the United States can "print" as many dollars as they need, the surplus will be consumed by the same China, India and many other countries, whose economy without the dollar will stagnate and degrade.

Here I will add - this is in a situation with a functioning US economy. If in 2019-2021, after the covid pandemic, the US economy really "sank", and the printing of money led to noticeable inflation, now the economy is on its feet, and there are no such problems.


Regarding gay parades banned in Russia. Are these all indicators of greatness? Does Russia have any other competitive advantages? It looks like it's the only one!

https://www.tripadvisor.ru/Attractions-g298484-Activities-c20-t103-Moscow_Central_Russia.html - these are those that are officially on tripadvisor, in fact - much more And this is the situation in all cities of Russia up to the far north: )

By the way, there were interesting statistics of PornHub - in the top three / top five in terms of visiting gay content, there were ... residents of Russia. Missed parades - pay attention

I'm tired of looking for proofs

https://www.chinabankingnews.com/2022/12/08/chinas-debt-ratio-rises-to-record-high-of-nearly-3-times-gdp-bis-data/
China’s Debt Ratio Rises to Record High of Nearly 3-times GDP: BIS Data
These are domestic loans, and according to the statistics of the situation in the US and Europe, the numbers are also large, but I agree that the US is in a better position.

the total amount of unfulfillable obligations for only 3 leading construction companies amounted to more than 13 trillion dollars.

Compare China's budget with this data. If this data is at the very top of the bubble, then it is wrong.

I even had to learn this shit. Where is Russia here?
https://www.pornhub.com/insights/2022-year-in-review#top-20-countries

[Alpha Marine]

This isn’t about only Russia and China, I don’t think Russia is moving towards yen to make it an international currency because it will be absurd to move from one countries currency to another. Rather this are just moves taken to dampen US dominance beyond economical control probably it is has to do with politics. With the effect of US sanction on Russia many countries are seemingly wary of such future occurrences and are opening ways to other currencies to reduce the US dominance. Even Saudi Arabia has open up a way to sell their oil and gas in currencies outside dollars. Even African union has had a plan to create its on central currency to use to transact within Africa as this could strengthen local currencies against the dollar.

I think Russia knows at this point not many countries will like the Russian Ruble to be a reserve currency so they are not even bothered about fighting for that. Their currency, economy, and political structure are not stable enough to sustain that. I mean, 1000 U.S. dollars is worth over 80000 Russian rubles. So yea I believe they're trying to move from one currency to another which is from the dollar to the yuan. They can achieve two things with one move; help depreciate the U.S. dollar and stop using the dollar for its international trade.

Nonetheless I don’t see the dollars losing much of its dominance just yet and this shouldn’t affect the country’s economy because it is not that US uses its Dollars as brokerage when every transaction takes to say that the lesser fee gotten from this brokerage will affect the economy.

If this goes on and more countries begin to buy into it, it might affect the U.S. dollar and furthermore the economy.
Demand for currency is one factor that affects the value of a currency. If a certain country exports what other countries demand, that country can ask for the other countries to pay in its local currencies. This will make that country's currency in demand on the international market.
The U.S. imports more than it exports, but its currency is the reserve currency, therefore it's always in demand on the international market so by the time countries no longer demand the dollar because they use yuan, the dollar value will drop while the value of the yuan will rise.

Anyway, I don't think this scheme of China and Russia will work because in this international politics they're playing, the U.S. ain't sleeping. They always find a way out of the corner.

[benalexis12]

This is what could be referred to in international politics as power tussle in terms of international levels of analysis. Haven such two conflicting countries like China and Russia coming together based on mutual economic interest against a common rival the USA is one that could be very frustrating for the US dollar with the unambiguous leverage and advantage the likes of Russia, China, Iran and Saudi Arabia have come together to give to the Chinese Yuan. With Russia in the forefront bent on the use of the Chinese Yuan instead of the US dollar in their country and in all of it's transactions and trades settlements with Latin America, Africa and Asia countries.
https://www.wsj.com/articles/russia-turns-to-chinas-yuan-in-effort-to-ditch-the-dollar-a8111457

What does this new development make for the US economy and the US dollar in the coming days and years to come.
Give your personal opinion on this development!

We all have the freedom to choose what currency we want to use when it comes to currency exchange. Because that's their choice we should respect. Maybe they saw something that wasn't good for the dollar so they did that. And if most countries will do that thing, I am pretty sure that it is not surprising that the value of the dollar will fall forever, and when that happens it will be a big crisis in the US because it is not supported by Gold unlike other countries country supported by gold.

[zasad@]

I do not believe that the ruble, yuan or any other currency can become a reserve. The USA consumes 2 times more than it produces, in Europe the situation is similar, although in other proportions, except for Germany and France. Japan has a similar situation.
This cannot go on for long. Either countries go back to gold or a new energy standard, or war will write off their debts.

[DrBeer]

In Russia, there is simply no other choice but to switch to Chinese yuan. In connection with the imposed international sanctions, Russia is cut off from the dollar and the euro. Rubles are no longer attractive to other countries and are even somewhat toxic. Therefore, Russia had to choose another currency. In this regard, they hoped for help from China, so the choice was made on the yuan. But in Russia with the Chinese yuan can lose. Let's see what will happen next.

The help and support of "fraternal China" is simply the best, according to Russia itself. Reality is always different
China is not siding with Russia in the Ukraine conflict, and some people are "deliberately misrepresenting" Beijing's stance due to the message of "borderless partnership" announced by the leaders of the two countries shortly before the start of the war. This was stated in an interview with The New York Times by Chinese Ambassador to the European Union Fu Kong.
He tried to make it clear that relations between Beijing and Moscow are not as close as is commonly believed, between Beijing and Kiev - not as far as supporters of Ukraine complain, and Europe should stop listening to the United States in everything and start pursuing an independent policy. Regarding the partnership between Russia and China, Fu Kong said:
"Boundless is nothing more than a rhetorical device." - he pointed out that China did not recognize Russia's annexation of Ukrainian territories, including Crimea and Donbass.

I immediately answer the question "so he could say that he was fit." NO. Autocratic China does not allow representatives of the country to say "anything for themselves." State officials say only what is agreed with the "party line"

https://www.nytimes.com/2023/04/05/world/europe/eu-china-embassador-russia-fu-cong.html

[darewaller]

What does this new development make for the US economy and the US dollar in the coming days and years to come

Maybe Dollar will be going to bankrupt?, but it looks impossible for the next 2 or 5 years because the dollar is ingrained in each country in the world. Other countries will not be easy to move or change the currency from Dollar to Yuan, As we know US won't just let those countries become world power to replace US hegemony so that mission will get obstacles from allies.

But if happen, and Yuan uses the same way (printing money without underlying) the result is the same as Dollar. there is no change whatsoever for developing countries.

I don't think this is the right term to use since they are not a business but they are only a currency although it's possible for it to become less valuable if many countries won't use it. It may take time because they will first consider if what are the consequences of doing it, if it's going to be beneficial in the long term or not and like you said, U.S won't let that easily happen.

The country might make some good deals about them only to remain on their side. If in case some will start using yuan, yuan might perform well but we don't know what can happen later on. Maybe what you said is true that they will end up like the dollar later on so it's still not beneficial in the long run. 

[Silberman]

Another not-so-good news for USD. An Asian country is Malaysia, after declaring that it does not want to depend on the USD, recently, they are also been negotiating with China on establishing the Asian Monetary Fund.

The US domination is coming to an end, I know there are many US and Western fanatics, but I would like to reiterate no empire can stand aloft forever. There will come a time when another force replaces it, and everything begins.

Humans have a short life span and as such they do not think on historical terms, while the US has been the most dominant country during the last century this was never meant to last forever, however US politicians seem to believe otherwise not realizing the US reached that position not only through a good management of its government, but also due to a very specific set of circumstances, but just as those circumstances can favor you they could also play against you, and it seems there is now enough interest from enough countries to try to challenge the hegemony of the US and the dollar.

[Wend]

Another not-so-good news for USD. An Asian country is Malaysia, after declaring that it does not want to depend on the USD, recently, they are also been negotiating with China on establishing the Asian Monetary Fund.

The US domination is coming to an end, I know there are many US and Western fanatics, but I would like to reiterate no empire can stand aloft forever. There will come a time when another force replaces it, and everything begins.
https://www.bloomberg.com/news/articles/2023-04-04/malaysia-china-to-discuss-asian-fund-to-cut-dollar-dependency#xj4y7vzkg

I also think that the US empire is entering a recession, they have stood on the top of glory for too long and it is time to give that position to someone else as they have taken from the British from 1920 to the present.
Recently, French President Emmanuel Macron, a close ally of the US, also made a statement that Europe should be less dependent on the dollar, not dependent on the US, and avoid following the US so as not to get caught up in wars that are not ours. They are slowly realizing how ridiculous and overbearing the US is in this crisis.
https://en.mehrnews.com/news/199275/Europe-must-reduce-dependence-on-US-dollar
https://www.reuters.com/world/macron-says-europe-should-not-follow-us-or-chinese-policy-over-taiwan-2023-04-09/

[el kaka22]

I wouldn't really debate which nation is doing better or worse, they are all doing terrible. It doesn't matter if it even looked better for a short period of time, it is always doing worse on the long run because inflation is a reality that we need to learn to live with. That's how we are going to end up with getting a better result in the crypto world and that's what we should do and that's what we should be approaching this issue as too.

Nations are bad, governments are bad, and crypto is better. Obviously not all crypto, there are some bad ones there too but if we focus on what we can do with bitcoin and eth and some other big good ones, then they are better than any government, USA or China, doesn't really matter.

[cafee_orange]

with the imposition of sanctions on Russia and the disconnection of almost all Russian banks from the SWIFT international payment system, from that moment Russia added to the attractiveness of the yuan, meaning that Russia is ready to turn away from the Dollar, but we need to know that Russia began to reduce its dependence on the dollar since 2014.
 https://www.wsj.com/articles/vladimir-putin-signs-treaty-to-annex-crimea-1395144516?mod=article_inline

[Silberman]

Another not-so-good news for USD. An Asian country is Malaysia, after declaring that it does not want to depend on the USD, recently, they are also been negotiating with China on establishing the Asian Monetary Fund.

The US domination is coming to an end, I know there are many US and Western fanatics, but I would like to reiterate no empire can stand aloft forever. There will come a time when another force replaces it, and everything begins.
https://www.bloomberg.com/news/articles/2023-04-04/malaysia-china-to-discuss-asian-fund-to-cut-dollar-dependency#xj4y7vzkg

I also think that the US empire is entering a recession, they have stood on the top of glory for too long and it is time to give that position to someone else as they have taken from the British from 1920 to the present.
Recently, French President Emmanuel Macron, a close ally of the US, also made a statement that Europe should be less dependent on the dollar, not dependent on the US, and avoid following the US so as not to get caught up in wars that are not ours. They are slowly realizing how ridiculous and overbearing the US is in this crisis.
https://en.mehrnews.com/news/199275/Europe-must-reduce-dependence-on-US-dollar
https://www.reuters.com/world/macron-says-europe-should-not-follow-us-or-chinese-policy-over-taiwan-2023-04-09/

It is going to be difficult for them to create a third block out of nowhere, western europe has been aligned with the interests of the US for far too long, so if they decide to try to move away from it then the US will retaliate with some of its economic weapons, after all for politicians there are no eternal friends, just eternal benefits, so the moment the governments of europe decide to take an independent stance that is the moment the US will change they way it treats them too.

[naira]

It is going to be difficult for them to create a third block out of nowhere, western europe has been aligned with the interests of the US for far too long, so if they decide to try to move away from it then the US will retaliate with some of its economic weapons, after all for politicians there are no eternal friends, just eternal benefits, so the moment the governments of europe decide to take an independent stance that is the moment the US will change they way it treats them too.

Then what will happen after policy after policy that President Biden has issued where they are actually soft in terms of economic strength? I know that the US will scare the global economic market like you said the weapon but unfortunately, the US is really running out of ways plus Europe is starting to look at the workings of the Russian alliance in solving the economy. We are talking about 26% of the world's GDP has now switched to the digital Yuan, and this will also reduce the demand for Dollars massively. It should be remembered that this is once again a challenge for the US, and if Biden thinks this is a joke, then the BRICS will have more freedom to control the global market, especially oil and gas imports.

[Sithara007]

I don't understand this. What is the point in using one manipulated fiat currency to replace another one? The only advantage is that China will end up as the major benefactor instead of the United States. Ideally for international trade, a neutral currency should be used and it should not be the national currency of any of the parties who are involved. In case of Chinese Yuan, it is known as one of the most manipulated currencies in the world. Every now and then, the Chinese government devalues the CNY, in order to help the exporters.

[Don Pedro Dinero]

What does this new development make for the US economy and the US dollar in the coming days and years to come.[/b]

What will happen if this trend continues is that the USA will no longer be able to continue to have the standard of living it has, which is based on exporting inflation to the rest of the world via dollars. Let us not forget that this departure from the dollar standard until not so long ago was life-threatening, like Gadaffi, who got into trouble when he said he would not accept dollars for his oil and wanted gold, and ended up dead. Or Saddam Hussein who started selling oil for euros.

I don't understand this. What is the point in using one manipulated fiat currency to replace another one? The only advantage is that China will end up as the major benefactor instead of the United States. Ideally for international trade, a neutral currency should be used and it should not be the national currency of any of the parties who are involved. In case of Chinese Yuan, it is known as one of the most manipulated currencies in the world. Every now and then, the Chinese government devalues the CNY, in order to help the exporters.

Well, it's not hard to understand. They are exchanging the fiat manipulated currency of others for their own. You really don't see it? I don't think there's much to explain here.

[Strongkored]

This change only changes the countries that benefit because their currency is used as a substitute for US Dollars and who is the winner of course China, not countries that change USD to Yuan, and China has succeeded in temporarily influencing these countries and because China has become a country with big trade, so like it or not these countries have to start using Yuan, this is just a form of Chinese invasion in the economy nothing else, but I doubt that they will fully use Yuan and leave the Dollar and when there is a change in world geo politics then everything will back to the origin that is USD.

[DrBeer]

I'm tired of looking for proofs

https://www.chinabankingnews.com/2022/12/08/chinas-debt-ratio-rises-to-record-high-of-nearly-3-times-gdp-bis-data/
China’s Debt Ratio Rises to Record High of Nearly 3-times GDP: BIS Data
These are domestic loans, and according to the statistics of the situation in the US and Europe, the numbers are also large, but I agree that the US is in a better position.

the total amount of unfulfillable obligations for only 3 leading construction companies amounted to more than 13 trillion dollars.

Compare China's budget with this data. If this data is at the very top of the bubble, then it is wrong.

I even had to learn this shit. Where is Russia here?
https://www.pornhub.com/insights/2022-year-in-review#top-20-countries

1. "Credit to China's non-financial sector totaled $51.87 trillion at the end of the first half of the year, equal to approximately 295% of national GDP, according to data released by BIS on Monday. This is the highest debt-to-GDP ratio for China since the beginning of the registrations in 1995, exceeding the previous peak reached at the end of 2020 by six percentage points" - and how? Is this indicator invisible? I emphasize that these are borrowings that they cannot solve on their own by printing the yuan (this will generally collapse the economy). And we also take into account that it all depends very much on external creditors, technologies and external sales markets ...
Compare with US figures: "In September 2020, the national debt rose to $26.9 trillion. On October 4, 2022, America's gross public debt exceeded $31 trillion for the first time and amounted to $31.12 trillion. Of which, $6.82 trillion is US intragovernmental debt . . another 24.29 trillion - to the public debt.". I think the numbers speak for themselves.
2. About pornhub - excuse me, the topic of the gay movement and around it is not so significant, I somehow didn’t think about it at all before your question I’ll clarify - once I came across in the news feed ... The data is not for 2022, it was about 2017- 2019. If you are very interested in this topic, you will definitely find information

[pooya87]

It is going to be difficult for them to create a third block out of nowhere, western europe has been aligned with the interests of the US for far too long, so if they decide to try to move away from it then the US will retaliate with some of its economic weapons, after all for politicians there are no eternal friends, just eternal benefits, so the moment the governments of europe decide to take an independent stance that is the moment the US will change they way it treats them too.

The biggest problem for Europe is that the politicians have no backbone, so they have no will for change. Not to mention that US anticipated its European cash cows go rogue so they have been eliminating anybody who thought of independence over the years. Which is the whole political scene in Europe is a mess over the past couple of years with government in England falling apart 3 times in a row, in France with millions protesting against the government, and so on.

[Argoo]

Russia have conflict with European countries and United State, seems they have planning for longer time move to use Yuan instead of using dollar, another good news from south asian or ASEAN zone try to use new payment system and move from dollar to other currency but still in progress not have final decision move from using dollar.

I don't know will bring positive or negative impact if many countries leave using dollar and move to other currencies kinds, however United State will not stop make war or anything else about how their currencies not adopted by many countries payment transaction. For Russia have planning last than one year after European countries suspend Russia due invasion war to Ukraine.

If everything was good with the economy in Russia, then it would use its own ruble in trade relations with other states. But since the Russian ruble has become toxic and no one needs it, Russia has to support the economies of other countries using their national currencies. But Russia does not use the dollar or the euro, not because it does not want to, but because the imposed sanctions and the disconnection of its banking system from the international payment system SWIFT do not allow it to do so.
It is no coincidence that Russia is now demanding to reconnect Rosselkhozbank to the SWIFT system, in exchange for the extension of the "grain agreement" for the export of agricultural products from the ports of Ukraine.

[DrBeer]

I don't understand this. What is the point in using one manipulated fiat currency to replace another one? The only advantage is that China will end up as the major benefactor instead of the United States. Ideally for international trade, a neutral currency should be used and it should not be the national currency of any of the parties who are involved. In case of Chinese Yuan, it is known as one of the most manipulated currencies in the world. Every now and then, the Chinese government devalues the CNY, in order to help the exporters.

Well, you began to understand that the matter here is not simple
Yes, you are absolutely guaranteed to soon understand that this is not a "fight against the dollar" but "saving the Chinese economy" + "Formation of the belt of China's servants."

Believe me - all these BRICS will not affect the dollar in any way. These are countries that have no real influence on the world economy, and are dependent on the West, and primarily on the world economic system, which is based on the dollar as the main international reserve currency.
But China will have a very strong and negative impact on the economies of the countries participating in the BRICS. You will be able to observe this personally in the next few years. But it will be very difficult to escape from the "embrace of China" ...

[Bellarg]

Sounds like good news for any countries exept USA?

[DrBeer]

Sounds like good news for any countries exept USA?

1. Can you explain what is good about this? Tolko with specific examples?

2. And this is what reality looks like
“Friendly” states, following the “unfriendly” ones, refuse to import cash currency into Russia, Dmitry Tulin, First Deputy Chairman of the Central Bank of the Russian Federation, said on Wednesday.
According to him, we are talking, in particular, about the Chinese yuan, whose share in the foreign trade turnover of the economy increased by more than 30 times over the past year.
Although the yuan has become the leader in terms of trading volume on the Moscow Exchange, and China has become Russia's largest trading partner, the Chinese Central Bank, according to Tulin, "does not welcome" the circulation of cash yuan abroad.
As a result, according to the official, the central bank does not have the opportunity to ease restrictions on the withdrawal of cash currency from the accounts of individuals: dollars and euros are prohibited from being imported due to sanctions, and other currencies are also not received.
“Chinese yuan can be obtained in cash… They are not and will not be, and there will be no dollars in cash,” Tulin warned.
He recalls that the Central Bank itself did not impose any bans on the import of currency "cash".
“If someone brings dollars in cash and euros into the country for tens, hundreds of billions ... There are none, there are no restrictions (for import). They are not supplied to us, moreover, friendly or neutral states do not welcome the circulation of their currency in cash abroad, ”the official explained (quoted by Interfax).
The Central Bank of the Russian Federation until September 9 this year extended the restrictions on the withdrawal of cash foreign currency. You can withdraw no more than $10,000 from a foreign currency account or deposit opened before March 9, 2022. The rest of the funds can only be received in rubles.

https://www.moscowtimes.ru/2023/04/05/update-1-vtb-ne-planiruet-vykhod-iz-zernovykh-aktivov-i-ndeksa-nameren-razvivat-raschety-i-roznitsu-a39199

3. Doesn't it bother you that all the hysteria around "abandon the dollar" ends up with stable currencies disappearing from the country's gold reserves, and they are being replaced with beautiful Chinese candy wrappers? Guess what it would be for?

[worldofcoins]

This is what could be referred to in international politics as power tussle in terms of international levels of analysis. Haven such two conflicting countries like China and Russia coming together based on mutual economic interest against a common rival the USA is one that could be very frustrating for the US dollar with the unambiguous leverage and advantage the likes of Russia, China, Iran and Saudi Arabia have come together to give to the Chinese Yuan. With Russia in the forefront bent on the use of the Chinese Yuan instead of the US dollar in their country and in all of it's transactions and trades settlements with Latin America, Africa and Asia countries.
https://www.wsj.com/articles/russia-turns-to-chinas-yuan-in-effort-to-ditch-the-dollar-a8111457

The move by Russia and China to promote the use of the Chinese Yuan in international transactions and settlements is a significant development that could have implications for the US economy and the US dollar.

What does this new development make for the US economy and the US dollar in the coming days and years to come.[/b]
Give your personal opinion on this development!

It's important to note that the US dollar is still the most widely used currency in international trade and finance, and It remains to be seen how this development will impact the US ec

[DrBeer]

The move by Russia and China to promote the use of the Chinese Yuan in international transactions and settlements is a significant development that could have implications for the US economy and the US dollar.

Are we talking about the economy? Then we are talking about the economy of China and Russia
1. There is no Russian economy as such This is about 1% of world GDP. This is about nothing, and the Russian economy cannot have ANY significant or lasting impact on anything.
2. China - the Chinese economy is export-oriented, and completely dependent on 2 entities:
- Western market of consumers and secured currencies coming from them (dollar and euro)
  - Western technologies, thanks to which China is now China

After these facts, you can forget about the attempt to "replace the US / Dollar" with the yuan

PS. Do you seriously not understand what kind of game China is playing with the yuan and why? Do you seriously think that against the DOLLAR?

[Sithara007]

Both are fiat currencies controlled by the central banks of the respective countries. I am not sure whether anyone else other than China will benefit, if CNY is used more for international trade rather than USD. China will be able to take loans at extremely low interest rates, similar to what the USA is doing now. And it is going to benefit their citizens immensely. But then, what is the benefit in this for Russia and other countries? What we need is a "neutral" currency for international trade (i.e one that is not controlled by the central banks of any of the sovereign nations).

[DrBeer]

Both are fiat currencies controlled by the central banks of the respective countries. I am not sure whether anyone else other than China will benefit, if CNY is used more for international trade rather than USD. China will be able to take loans at extremely low interest rates, similar to what the USA is doing now. And it is going to benefit their citizens immensely. But then, what is the benefit in this for Russia and other countries? What we need is a "neutral" currency for international trade (i.e one that is not controlled by the central banks of any of the sovereign nations).

The yuan in international trade is nonsense, such as the ruble in international currency, or the Iranian real, or the Indian rupee, or the Brazilian real ...
The measure of value must have its own value, and the provision of this value ... And how can the listed currencies provide their value?
The answer is simple - at best - RESOURCES. Those. The "cost" of the countries of resource appendages .. And if the appendages ... So the lot of these countries is to use REAL CURRENCIES for international payments. Like dollar, euro, Japanese yen, Swiss franc,...
Dear Sithara007 - do you really not understand what China is doing now? No !? I do not believe ! You are a smart person! You must understand the real goals of the process

[Argoo]

Both are fiat currencies controlled by the central banks of the respective countries. I am not sure whether anyone else other than China will benefit, if CNY is used more for international trade rather than USD. China will be able to take loans at extremely low interest rates, similar to what the USA is doing now. And it is going to benefit their citizens immensely. But then, what is the benefit in this for Russia and other countries? What we need is a "neutral" currency for international trade (i.e one that is not controlled by the central banks of any of the sovereign nations).

Russia's position can be understood: they are trying to use any other currency that is in demand, since in this respect it has big problems with the ruble. But she was forbidden to use the dollar and the euro in international payments. Therefore, they are trying to use the yuan, hoping, moreover, for some help from China. But for other countries, the choice remains the same and it is unlikely that they will change anything in terms of the choice of currency.
  There can be no "neutral" currency for international trade (i.e. one that is not controlled by the central banks of any of the sovereign countries) in principle. Any currency issued by a state or a union of states will necessarily be controlled by them.

[Davian144]

It's understandable that you have reservations about the future adoption of the Chinese currency, the Yuan, in Latin America. The influence of the American Dollar has indeed been significant in the region, and economic policies from the United States have traditionally held sway.

The influence of the US dollar is still very large, especially in its own territory, but that does not mean that other currencies will not have an influence elsewhere because when big business people and big investors start to believe in several currencies other than the dollar, it will also create a bit of competition for each currency that some businessmen and investors will believe in or adopt.

In general, the Yuan is still less popular than the dollar, but it is only a matter of time for the Yuan to become popular and rival the dollar in the world's economic sector. Because according to the news circulating through cnbc.com at the end of April said that the Yuan has fallen about 3% this month because the US dollar strengthened, according to Wind Information. Prolonged Covid control and concerns about China's economic growth have also weakened sentiment towards the yuan.

[indo1]

I think this is related to the conflict between Russia and Europe. they don't want to use dollars as a transaction. well, this is actually an advantage for several eastern countries, even China, whose economy is likely to grow higher. I think that if Russia dominates many industries, it is likely that the yuan will be above the dollar if they continue to use the yuan as a transaction tool. I don't think that's bad either.

[be.open]

To be honest, I don't think the Chinese currency has much future here in Latin America, historically we are under the sphere of influence of the American Dollar and the economic policies taken in Washington. I don't see why Brazil, Colombia, Peru or Chile would adopt the Yuan.

The only realistic candidates for it would be Argentina and Venezuela, since both have had suffered inflation problems to this day an the Yuan is relatively strong. In the case of Venezuela, people prefer to hold Dollars (for the influential aspects I already mentioned) and the government is never serious when they talk about dishing USD in favor of currencies from ally super-powers. I am very skeptical this has some room in Latam.

As far as I understand, China has a rather interesting approach - it offers a country with which it has trade relations to open a bilateral swap in national currencies in an amount that does not exceed the minimum bilateral trade balance. And almost every country benefits because China is still the factory of the world and almost every country buys a lot of Chinese goods. Why not pay for them in your national currency in the amount that China also needs goods from this country? This is a win-win deal, especially if the national currency of the country is subject to fluctuations, as is often the case in Latin American countries.

This approach works well if there is no strong trade imbalance. Because neither China is interested in the excessive accumulation of the unstable national currency of another country, nor the other country is not interested in the excessive accumulation of the Chinese yuan. Thus, China's approach naturally entails the alignment and harmonization of the trade balance between countries within the framework of bilateral trade relations.

ps By the way, bitcoin is potentially well suited for the role of a universal politically neutral compensator of trade imbalances in such a scheme, and perhaps in the future we will see it in this new role for ourselves - a compensator of foreign trade imbalances (sorry for the spoiler for the next episode ).

[panganib999]

This is what could be referred to in international politics as power tussle in terms of international levels of analysis. Haven such two conflicting countries like China and Russia coming together based on mutual economic interest against a common rival the USA is one that could be very frustrating for the US dollar with the unambiguous leverage and advantage the likes of Russia, China, Iran and Saudi Arabia have come together to give to the Chinese Yuan. With Russia in the forefront bent on the use of the Chinese Yuan instead of the US dollar in their country and in all of it's transactions and trades settlements with Latin America, Africa and Asia countries.
https://www.wsj.com/articles/russia-turns-to-chinas-yuan-in-effort-to-ditch-the-dollar-a8111457

What does this new development make for the US economy and the US dollar in the coming days and years to come.
Give your personal opinion on this development!

Could have detrimental effects for sure, including the loss of trust for the USD within the circle of China and Russia, along with their political allies, as well as an economic effect considering this is one more country that's not using the global standard currency. In any case the change from USD to Yuan both have their political and economic reasons. Besides the barring of Swift to make transactions with Russia, as well as the ongoing tensions between Russia and the US-Allied Ukraine, there's also the fact that the USD is constantly bleeding due to hyperinflation, brought by the effects of the overprinting of money no thanks to COVID-19 and the belligerent leadership of Sleepy Joe. If all of this goes on we can say bye-bye to USD and the economy it has built within itself as we know it.

[coupable]

After reading many comments, I clearly noticed that there are actually people who think that the world is able to abandon the use of the dollar, and I mean here the countries that are waging an undeclared economic war against the United States. 
The strength of the dollar is not only in its adoption mainly in commercial exchanges, but also because it derives its strength from the centralization of the dollar in the world.  And as evidence is that those countries that want to get rid of the power of the dollar in their exchanges cannot get rid of their reserves in hard currency, of which the dollar represents the bulk.

[Andrija Branislav]

It is going to be difficult for them to create a third block out of nowhere, western europe has been aligned with the interests of the US for far too long, so if they decide to try to move away from it then the US will retaliate with some of its economic weapons, after all for politicians there are no eternal friends, just eternal benefits, so the moment the governments of europe decide to take an independent stance that is the moment the US will change they way it treats them too.

The biggest problem for Europe is that the politicians have no backbone, so they have no will for change. Not to mention that US anticipated its European cash cows go rogue so they have been eliminating anybody who thought of independence over the years. Which is the whole political scene in Europe is a mess over the past couple of years with government in England falling apart 3 times in a row, in France with millions protesting against the government, and so on.

That's right, on the other hand a significant power struggle in international politics will present new challenges to the US economy which could potentially impact the status of the US dollar as a global reserve currency due to which there is an increasing tendency for countries like Russia to move away from the US dollar in favor of the Yuan. China is increasing.

[DrBeer]

Both are fiat currencies controlled by the central banks of the respective countries. I am not sure whether anyone else other than China will benefit, if CNY is used more for international trade rather than USD. China will be able to take loans at extremely low interest rates, similar to what the USA is doing now. And it is going to benefit their citizens immensely. But then, what is the benefit in this for Russia and other countries? What we need is a "neutral" currency for international trade (i.e one that is not controlled by the central banks of any of the sovereign nations).

Russia's position can be understood: they are trying to use any other currency that is in demand, since in this respect it has big problems with the ruble. But she was forbidden to use the dollar and the euro in international payments. Therefore, they are trying to use the yuan, hoping, moreover, for some help from China. But for other countries, the choice remains the same and it is unlikely that they will change anything in terms of the choice of currency.
  There can be no "neutral" currency for international trade (i.e. one that is not controlled by the central banks of any of the sovereign countries) in principle. Any currency issued by a state or a union of states will necessarily be controlled by them.

Yes, it is, but... Like everything that Russia has been doing in recent years - this is "shooting itself in the knee"... Although objectively already in other parts of the body
From "successes":

- Settlements for oil with India - in Indian rupees. But! You can't exchange them for dollars, you can't return them, you can't buy something useful! Because there are restrictions from India. Best "friend" of Russia
- Settlements for oil with China - for Yuan! Which, by the way, cannot be exchanged for dollars either! And you can only buy a limited group of goods from China on them
- In addition, the Ministry of Finance of Russia officially announced the disappearance of many billions of dollars, which Russia expected to receive as part of the "circumvention of sanctions." Her "partners" received oil and gas, but money... was not paid. Officially. Although it is not excluded that it was simply stolen already on the territory of Russia

[AmoreJaz]

After reading many comments, I clearly noticed that there are actually people who think that the world is able to abandon the use of the dollar, and I mean here the countries that are waging an undeclared economic war against the United States.  
The strength of the dollar is not only in its adoption mainly in commercial exchanges, but also because it derives its strength from the centralization of the dollar in the world.  And as evidence is that those countries that want to get rid of the power of the dollar in their exchanges cannot get rid of their reserves in hard currency, of which the dollar represents the bulk.

that is true, let's be realistic with the world situation. there may be good alternatives, but it will be long before the USD will be replaced by another fiat currency. what you can think of when it comes to crypto is like this - can bitcoin be replaced by another alt anytime soon? i don't think so. how much more of the USD where it has been decades and decades that it is used as the primary reserve for the global economy. i don't know what other people are thinking but should see the bigger picture here.

[Captain Corporate]

People can criticize Russia and China without praising USA, you guys are aware of that right? All I have seen here is people saying either good things about USA and bashing Russia/China duo, or people who deny "allegations" and do the reverse. I am sorry but it is obvious from the start that we are talking about three nations that face trouble. USA with their debt situation and house not being able to pass a simple law, they are doing f-k all right now and they are in shambles and they are terrible, I'll give them this, they have democracy at least, Russia and China definitely doesn't have that, impossible for them to have another ruler for now. So all in all I am guessing that we are looking at bunch of nations whose currencies all will get worse, every single one of them, all have their trouble, all have different reasons, but I wouldn't hold dollars, yuans or rubles as my investment, they will all go down, short them if I would against bitcoin for sure.

[DrBeer]

People can criticize Russia and China without praising USA, you guys are aware of that right? All I have seen here is people saying either good things about USA and bashing Russia/China duo, or people who deny "allegations" and do the reverse. I am sorry but it is obvious from the start that we are talking about three nations that face trouble. USA with their debt situation and house not being able to pass a simple law, they are doing f-k all right now and they are in shambles and they are terrible, I'll give them this, they have democracy at least, Russia and China definitely doesn't have that, impossible for them to have another ruler for now. So all in all I am guessing that we are looking at bunch of nations whose currencies all will get worse, every single one of them, all have their trouble, all have different reasons, but I wouldn't hold dollars, yuans or rubles as my investment, they will all go down, short them if I would against bitcoin for sure.

The only problem is that some people are trying to manipulate information. And they are trying to pass off as "worldwide de-dollarization" - China's attempt to get itself "yuan slaves" to export inflation and the problems of the Chinese economy to these very "fighters against dollars". And the United States... The United States, as always, will go through this "standard procedure" about its national debt, and no one will suffer. As some would really like, those who do not understand how the world economy works and works

It is POSSIBLE to get away from the dollar, but a simple question: why, and how to change it - baffles everyone. No, there are certainly fervent dreamers who call the yuan, the rupee, almost the ruble! But we understand that this is just a cynical joke

[be.open]

The only problem is that some people are trying to manipulate information. And they are trying to pass off as "worldwide de-dollarization" - China's attempt to get itself "yuan slaves" to export inflation and the problems of the Chinese economy to these very "fighters against dollars". And the United States... The United States, as always, will go through this "standard procedure" about its national debt, and no one will suffer. As some would really like, those who do not understand how the world economy works and works

Well, that is, when the United States exports inflation and the problems of its economy around the world, this is normal, but when China tries to do the same, it is wrong. Quod licet Jovi, non licet bovi, do I understand your train of thought correctly?

It is POSSIBLE to get away from the dollar, but a simple question: why, and how to change it - baffles everyone. No, there are certainly fervent dreamers who call the yuan, the rupee, almost the ruble! But we understand that this is just a cynical joke

I think it’s worth waiting for the BRICS summer summit, where some kind of solution to this issue should be announced in the form of a synthetic token with a proportional weight of all emerging economies in the alliance, or with a link to a unit of energy, or something like that. The other day, the head of the Central Bank of the Russian Federation, Nabiullina, visited a colleague in Iran, where they also negotiated the future architecture of financial interactions.

[DrBeer]

The only problem is that some people are trying to manipulate information. And they are trying to pass off as "worldwide de-dollarization" - China's attempt to get itself "yuan slaves" to export inflation and the problems of the Chinese economy to these very "fighters against dollars". And the United States... The United States, as always, will go through this "standard procedure" about its national debt, and no one will suffer. As some would really like, those who do not understand how the world economy works and works

Well, that is, when the United States exports inflation and the problems of its economy around the world, this is normal, but when China tries to do the same, it is wrong. Quod licet Jovi, non licet bovi, do I understand your train of thought correctly?

It is POSSIBLE to get away from the dollar, but a simple question: why, and how to change it - baffles everyone. No, there are certainly fervent dreamers who call the yuan, the rupee, almost the ruble! But we understand that this is just a cynical joke

I think it’s worth waiting for the BRICS summer summit, where some kind of solution to this issue should be announced in the form of a synthetic token with a proportional weight of all emerging economies in the alliance, or with a link to a unit of energy, or something like that. The other day, the head of the Central Bank of the Russian Federation, Nabiullina, visited a colleague in Iran, where they also negotiated the future architecture of financial interactions.

You are confusing, as the people say, "warm with soft"

In a sense, the US is of course exporting its inflation to the world. But this suits everyone and does not create problems for anyone. Moreover - due to the "smearing" of the problem - the dollar is the international reserve currency. And most importantly, giving the dollar the status of an international reserve currency had a completely different meaning! I'm sure you don't know, but you think that this is a conspiracy of "insidious imperialists"
And the story is this - at a time when the whole world was destabilized by the Second World War, it was necessary to become attached to something stable and liquid. At that time, Europe was in ruins, the leading economies were badly hit, and the only stable and secured currency was the dollar. Whether you like it or not. But that's the reality

And China has a primitive goal - to urgently save its economy by hanging its problems on its "partners", and build a monopolized channel for access to the dollar for these unfortunate people
Hope you feel the difference.

Nothing will happen about "waiting for the BRICS a bit"; China will forcibly pull the yuan for everyone, or some more cunning scheme, but so that these unfortunate fools give up the dollar and the opportunity to independently interact with the whole world is normal, because. In fact, no one needs the yuan, and the dollar is critically important to China! And China will attribute this binding "role" to itself

[coupable]

After reading many comments, I clearly noticed that there are actually people who think that the world is able to abandon the use of the dollar, and I mean here the countries that are waging an undeclared economic war against the United States.  
The strength of the dollar is not only in its adoption mainly in commercial exchanges, but also because it derives its strength from the centralization of the dollar in the world.  And as evidence is that those countries that want to get rid of the power of the dollar in their exchanges cannot get rid of their reserves in hard currency, of which the dollar represents the bulk.

that is true, let's be realistic with the world situation. there may be good alternatives, but it will be long before the USD will be replaced by another fiat currency. what you can think of when it comes to crypto is like this - can bitcoin be replaced by another alt anytime soon? i don't think so. how much more of the USD where it has been decades and decades that it is used as the primary reserve for the global economy. i don't know what other people are thinking but should see the bigger picture here.

Just as it was not easy for America to establish the power of the dollar, which requires terrorizing the world with two nuclear bombs, it will never be easy to remove that power from the dollar unless we remove America's dominant power over the world.

[Sithara007]

Just as it was not easy for America to establish the power of the dollar, which requires terrorizing the world with two nuclear bombs, it will never be easy to remove that power from the dollar unless we remove America's dominant power over the world.
In a statement to one of the economists, he stated that the United States does not pay attention to all attempts to get rid of the dollar because it knows that it is almost impossible (at least now) for them to do so, since international exchanges require both parties to be satisfied with the currency used, which cannot happen with Most countries in the world that do not want to replace the dollar.

I can agree. Exchange rates for most of the other fiat currencies, and even for cryptocurrencies such as Bitcoin is measured with respect to the United States Dollar. Even after so many years trying to replace USD as the global trade currency, China and it's allies have not managed to even take the share of CNY to double digit points. The argument is why USD should be replaced with CNY, when the latter is an even more manipulated fiat currency? All the negatives being said about the US Dollar are applicable to the Chinese Yuan as well.

[be.open]

The only problem is that some people are trying to manipulate information. And they are trying to pass off as "worldwide de-dollarization" - China's attempt to get itself "yuan slaves" to export inflation and the problems of the Chinese economy to these very "fighters against dollars". And the United States... The United States, as always, will go through this "standard procedure" about its national debt, and no one will suffer. As some would really like, those who do not understand how the world economy works and works

Well, that is, when the United States exports inflation and the problems of its economy around the world, this is normal, but when China tries to do the same, it is wrong. Quod licet Jovi, non licet bovi, do I understand your train of thought correctly?

It is POSSIBLE to get away from the dollar, but a simple question: why, and how to change it - baffles everyone. No, there are certainly fervent dreamers who call the yuan, the rupee, almost the ruble! But we understand that this is just a cynical joke

I think it’s worth waiting for the BRICS summer summit, where some kind of solution to this issue should be announced in the form of a synthetic token with a proportional weight of all emerging economies in the alliance, or with a link to a unit of energy, or something like that. The other day, the head of the Central Bank of the Russian Federation, Nabiullina, visited a colleague in Iran, where they also negotiated the future architecture of financial interactions.

You are confusing, as the people say, "warm with soft"

In a sense, the US is of course exporting its inflation to the world. But this suits everyone and does not create problems for anyone. Moreover - due to the "smearing" of the problem - the dollar is the international reserve currency. And most importantly, giving the dollar the status of an international reserve currency had a completely different meaning! I'm sure you don't know, but you think that this is a conspiracy of "insidious imperialists"

In a sense? In direct. And no, this does not suit everyone, and it creates problems for many people in the world.

And the story is this - at a time when the whole world was destabilized by the Second World War, it was necessary to become attached to something stable and liquid. At that time, Europe was in ruins, the leading economies were badly hit, and the only stable and secured currency was the dollar. Whether you like it or not. But that's the reality

That was the reality 70 years ago, a lot has changed since then. And the US has no one to blame but itself, look at the growth chart of US debt - recently it reflects the inadequacy and immoderation of the US in matters of consumption and fiscal discipline. The United States lives beyond its means, in fact they are engaged in robbery of the whole world. Here is the current reality.

And China has a primitive goal - to urgently save its economy by hanging its problems on its "partners", and build a monopolized channel for access to the dollar for these unfortunate people
Hope you feel the difference.

Nothing will happen about "waiting for the BRICS a bit"; China will forcibly pull the yuan for everyone, or some more cunning scheme, but so that these unfortunate fools give up the dollar and the opportunity to independently interact with the whole world is normal, because. In fact, no one needs the yuan, and the dollar is critically important to China! And China will attribute this binding "role" to itself

We'll see. A simple replacement of the dollar with the yuan is not a solution to the problem, in the case of Russia it is a forced and temporary solution due to economic sanctions.

[pooya87]

The argument is why USD should be replaced with CNY, when the latter is an even more manipulated fiat currency? All the negatives being said about the US Dollar are applicable to the Chinese Yuan as well.

This is exactly why the world is not replacing dollar with yuan, they are replacing dollar with bilateral agreements between countries to use other means of payment. For example among the ASEAN countries they have come up with agreements and infrastructure to use their own respective currencies (not USD and not CNY). Similarly if a country from ASEAN wants to trade with China they use similar bilateral agreements and use CNY and when they want to trade with US they use USD.
Either case, dollar is being abandoned at large.

[DrBeer]

...
1.In a sense? In direct. And no, this does not suit everyone, and it creates problems for many people in the world.
2.That was the reality 70 years ago, a lot has changed since then. And the US has no one to blame but itself, look at the growth chart of US debt - recently it reflects the inadequacy and immoderation of the US in matters of consumption and fiscal discipline. The United States lives beyond its means, in fact they are engaged in robbery of the whole world. Here is the current reality.
3.We'll see. A simple replacement of the dollar with the yuan is not a solution to the problem, in the case of Russia it is a forced and temporary solution due to economic sanctions.

Thanks for the answer !

1.In a sense? Direct. And no, this does not suit everyone, and it creates problems for many people in the world.

Always, in response to such an answer, I ask one thing - give examples from real life, where, how and to whom did this create problems? Especially "for many people"?

2.That was the reality 70 years ago, a lot has changed since then. And the US has no one to blame but itself, look at the growth chart of US debt - recently it reflects the inadequacy and immoderation of the US in matters of consumption and fiscal discipline. The United States lives beyond its means, in fact they are engaged in robbery of the whole world. Here is the current reality.

About "look at their public debt" - this mantra has been around for many decades. Tell me - when was this "problem" unresolved? Or led to real problems? The answer is simple - NO. Here is the current reality.

3.We'll see. A simple replacement of the dollar with the yuan is not a solution to the problem, in the case of Russia it is a forced and temporary solution due to sanctions economic.

So what did Russia get in the end? Huge deposits of yuan that cannot be turned into a dollar? The fact is that the Russian economy does not need the yuan. The Russian economy needs the dollar and the euro. What is happening now is simply "the use of Russia's resources" by China, for its own good.

It's like it was with the rupee - oil was sold, gold was sold - but there were no dollars. Plus, billions more from deals "to circumvent sanctions" just disappeared somewhere (easily googled) ...

[Crypt0Gore]

Why do I still feel like this whole hate on USD won't work? I have nothing much to say about this plan but I don't see USD getting taking over by Yuan, if fee countries decide to turn their back on the US dollars what about the rest of the world? This is going to fail woefully on the long run.

[Ayers]

Why do I still feel like this whole hate on USD won't work? I have nothing much to say about this plan but I don't see USD getting taking over by Yuan, if fee countries decide to turn their back on the US dollars what about the rest of the world? This is going to fail woefully on the long run.

No one is saying that the yuan will dominate or beat the dollar. It's all about the replace and finding a way out of the USD dependency. I don't know how far the new alliance led by Russia and China will go in rebalancing the world's balance of power. But I believe nothing in this world can last and be at the top forever. There will come a time when the US and the USD will be replaced by something stronger, like how the US beat the UK to become the world hegemon. It's just a law of nature, and it's bound to happen.

[stompix]

Why do I still feel like this whole hate on USD won't work?

Because it has never happened at any point in history where just hate and no actual economic reason have been able to trigger the downfall of a currency that besides a few haters is still used and seen as trustable by the majority of the world and not just majority in population but majority when in comes to economical means?

And you can see the irony right now right here, just check the signature of those that each day take a swing at the $, all are getting paid according to the $ value, there is no campaign on this forum paying a fixed sum in yuans or rubles or rial or any other kind of toilet paper money.
But as it is with every propaganda it all stops when it's personal, shouting against the $ might be trendy might be cool or gather you a fanbase but in the the end, when it comes to the banknotes you want in your wallet it's good old $ and nothing more.

[asyakashi]

yeah this is very profitable for china. they will most likely be international money on a yuan basis. I think this has something to do with Russia's conflict with Europe so that the dollar does not want to be used by Russia for transactions. the most important thing is, if one day the yuan really above the dollar we will likely see China will hold the first position in world economic power.

[darkangel11]

yeah this is very profitable for china. they will most likely be international money on a yuan basis. I think this has something to do with Russia's conflict with Europe so that the dollar does not want to be used by Russia for transactions. the most important thing is, if one day the yuan really above the dollar we will likely see China will hold the first position in world economic power.

To be exact, Russia isn't in a conflict with Europe. It's in a conflict with most of the world. Check which countries are imposing sanctions on Russia. It's the whole G7, so also the US and Canada, and many other countries like Japan and South Korea. Russia has put itself in a large disadvantage by attacking Ukraine. So far it hasn't achieved any of its military goals and destroyed its deals with many powerful countries, like the gas deal with Europe.
It will continue to trade with China, but don't be fooled by their friendship. China doesn't want strong Russia, which is why it isn't helping with the war against Ukraine. The best possible outcome for China would be a prolonged conflict that bleeds out both Russia and the US.

[Japinat]

People can criticize Russia and China without praising USA, you guys are aware of that right? All I have seen here is people saying either good things about USA and bashing Russia/China duo, or people who deny "allegations" and do the reverse. I am sorry but it is obvious from the start that we are talking about three nations that face trouble. USA with their debt situation and house not being able to pass a simple law, they are doing f-k all right now and they are in shambles and they are terrible, I'll give them this, they have democracy at least, Russia and China definitely doesn't have that, impossible for them to have another ruler for now. So all in all I am guessing that we are looking at bunch of nations whose currencies all will get worse, every single one of them, all have their trouble, all have different reasons, but I wouldn't hold dollars, yuans or rubles as my investment, they will all go down, short them if I would against bitcoin for sure.

That is normal mate, it's not a really a big deal because everyone are just expressing their thoughts and opinions about the matter, and we cannot really blame them if they are blinded by the term "middle class" as they have their own reasons why they loved that term in the first place. But know this, they will get an eye opener sooner or later because I believe these things will slowly happen in the middle of quarter three and quarter four this year as transition is taking place.

They may have no idea at all as of now but soon they will know the situation they are facing, just let them be if they don't want to know about the truth. They chose to be in that situation and we cannot force them to prepare for what's coming. As of now, the use of Chinese Yuan in the international market is just a beginning and when the second phase will begin, USA will probably suffer more when the BRICS will successfully launch a new reserve currency.

[redwine49]

interesting to read this debate. This is about money right, everything is only made on paper.

long time ago there are paper money backed by gold. which one is it? the USD.
then everycurrency around the world used to follow USD.
after the United States terminated convertibility of the US dollar to gold in 1971
our money became free floating (inflation)

[molsewid]

yeah this is very profitable for china. they will most likely be international money on a yuan basis. I think this has something to do with Russia's conflict with Europe so that the dollar does not want to be used by Russia for transactions. the most important thing is, if one day the yuan really above the dollar we will likely see China will hold the first position in world economic power.

And maybe they realize that goods and materials are good in China so using Yuan will decrease the amount they needed to convert in order for them to buy those things. And I also believe it has to do with their issues with Europe or US. And yes, supporting Yuan from one of the biggest continent and powerful country will make China dominate among all other countries.

[nesty]

Russia and others move to use Yuan is maybe because of the trade war between the US and China which i think affected the stability of the dollar. China's growing economic influence to internationalize the Yuan had made it attractive as an alternative for countries seeking to diversify their currency reserves. I think it is also because of the continuous economic growth of China more countries are now doing business with them and most likely they are using Yuan for transactions.

[Renampun]

This is what could be referred to in international politics as power tussle in terms of international levels of analysis. Haven such two conflicting countries like China and Russia coming together based on mutual economic interest against a common rival the USA is one that could be very frustrating for the US dollar with the unambiguous leverage and advantage the likes of Russia, China, Iran and Saudi Arabia have come together to give to the Chinese Yuan. With Russia in the forefront bent on the use of the Chinese Yuan instead of the US dollar in their country and in all of it's transactions and trades settlements with Latin America, Africa and Asia countries.
https://www.wsj.com/articles/russia-turns-to-chinas-yuan-in-effort-to-ditch-the-dollar-a8111457

What does this new development make for the US economy and the US dollar in the coming days and years to come.
Give your personal opinion on this development!

they (USA) think that they are a superpower country and can dictate all countries in the world with their sanctions and threats. they think that other countries are not brave enough to be able to tackle them in a way that is brave enough. switching currency from usd to yuan in their trading is just their first step, surely BRICS alliance and many other countries that are fed up with American and USD domination will lean to Russia and China and their grand alliance and will come with new attacks on America and the west.

the west and america will definitely be upset about this and let's just wait for america and the west to play the victim and accuse china and russia and their allies of trying to play unfairly and pose a threat to global stability.

[Sithara007]

Russia and others move to use Yuan is maybe because of the trade war between the US and China which i think affected the stability of the dollar. China's growing economic influence to internationalize the Yuan had made it attractive as an alternative for countries seeking to diversify their currency reserves. I think it is also because of the continuous economic growth of China more countries are now doing business with them and most likely they are using Yuan for transactions.

I have doubts about this "growing economic influence" of China. As per data from 2022, Chinese Yuan is the 8th most traded currency in the world with a share of 2.16% (now compare that with 44.15% for the USD and 16.14% for the Euro). Even the Swiss France is ranked above Chinese Yuan. For those who want to replace the US Dollar, CNY is a good option. But then in terms of basics, CNY is weaker than the USD. It is being heavily manipulated by the Chinese government and other countries should be cautious while using it.

[lixer]

yeah this is very profitable for china. they will most likely be international money on a yuan basis. I think this has something to do with Russia's conflict with Europe so that the dollar does not want to be used by Russia for transactions. the most important thing is, if one day the yuan really above the dollar we will likely see China will hold the first position in world economic power.

To be exact, Russia isn't in a conflict with Europe. It's in a conflict with most of the world. Check which countries are imposing sanctions on Russia. It's the whole G7, so also the US and Canada, and many other countries like Japan and South Korea. Russia has put itself in a large disadvantage by attacking Ukraine. So far it hasn't achieved any of its military goals and destroyed its deals with many powerful countries, like the gas deal with Europe.
It will continue to trade with China, but don't be fooled by their friendship. China doesn't want strong Russia, which is why it isn't helping with the war against Ukraine. The best possible outcome for China would be a prolonged conflict that bleeds out both Russia and the US.

Well, I do agree with you, China would probably not want Russia to be more powerful than it and all these trades and everything are obviously not aimed at that, China might be helping Russia or making trades with them so that they keep it against the US and Europe and if China becomes successful in that, he will probably abandon the friendship too when required.

No country will have love for any other country apart from their own benefits that they can get from each other and that is why they make friendships, otherwise, if one could survive without the other, no one would even ask each other at all.

[redwine49]

Russia and others move to use Yuan is maybe because of the trade war between the US and China which i think affected the stability of the dollar. China's growing economic influence to internationalize the Yuan had made it attractive as an alternative for countries seeking to diversify their currency reserves. I think it is also because of the continuous economic growth of China more countries are now doing business with them and most likely they are using Yuan for transactions.

the long standing US Dollar vs the use of chinesse yuan still long way to go for international transaction.
news is just news and implementing it takes a long time or it's just a plan, it may work or maybe it's just a plan that maybe just a discourse

[DrBeer]

Russia and others move to use Yuan is maybe because of the trade war between the US and China which i think affected the stability of the dollar. China's growing economic influence to internationalize the Yuan had made it attractive as an alternative for countries seeking to diversify their currency reserves. I think it is also because of the continuous economic growth of China more countries are now doing business with them and most likely they are using Yuan for transactions.

I have doubts about this "growing economic influence" of China. As per data from 2022, Chinese Yuan is the 8th most traded currency in the world with a share of 2.16% (now compare that with 44.15% for the USD and 16.14% for the Euro). Even the Swiss France is ranked above Chinese Yuan. For those who want to replace the US Dollar, CNY is a good option. But then in terms of basics, CNY is weaker than the USD. It is being heavily manipulated by the Chinese government and other countries should be cautious while using it.

Very accurate comment!

Replacing the dollar with the yuan is an extremely stupid exercise.
It's like replacing the dollar, well, let it be with the Iranian real, or the Brazilian real ... Well, they replaced it, and then what? Instability of the economy, lack of provision with real economic power, a huge number of negative factors influencing the value of the currency, .. What BENEFITS will the one who will change the STABLE dollar to the UNSTABLE yuan/real/... get? Actions must have a clearly defined goal that brings benefits or benefits or solves some problem! But today, no matter how much anyone would like, there is NO ALTERNATIVE to the dollar.

PS About the "success of Russia" with the transition to settlements in yuan and rupees, I hope you don't need to tell?
Now China and India have what they wanted and for cheap, while Russia has a bunch of colorful papers, and the inability to exchange them for something Russia really needs

[Lamkuthang]

In my view, This development represents a shift in global economic dynamics and challenges the US dollar's longstanding dominance as the world's reserve currency. This poses a potential risk to the US economy, as reduced demand for the dollar could weaken its value and impact the country's ability to finance its first ever deficit.

What this will bring for the coming days and years I think this move could reduce the influence of the United States in global financial affairs and potentially lead to a redistribution of power on the international stage. While the full ramifications are yet to be seen, it is clear that this development signals a changing economic landscape and requires careful attention and a strategic response from US policymakers.

[bittraffic]

In my view, This development represents a shift in global economic dynamics and challenges the US dollar's longstanding dominance as the world's reserve currency. This poses a potential risk to the US economy, as reduced demand for the dollar could weaken its value and impact the country's ability to finance its first ever deficit.

What this will bring for the coming days and years I think this move could reduce the influence of the United States in global financial affairs and potentially lead to a redistribution of power on the international stage. While the full ramifications are yet to be seen, it is clear that this development signals a changing economic landscape and requires careful attention and a strategic response from US policymakers.

Anyone could see where this going since we're not gonna accept China to be in the equal footing of US when it comes to making policy. Its only the BRICS countries that see China to be the soon world leader which could lead to war to settle this as part of that strategic responce.

I don't really China the world leader but its still the alternative to US since many countries wants independence from US like the African countries which they will be using Yuan for their trades.

[Sithara007]

Anyone could see where this going since we're not gonna accept China to be in the equal footing of US when it comes to making policy. Its only the BRICS countries that see China to be the soon world leader which could lead to war to settle this as part of that strategic responce.

I don't really China the world leader but its still the alternative to US since many countries wants independence from US like the African countries which they will be using Yuan for their trades.

Argentina has become the latest country to use CNY for international trade. They decided to replace USD with CNY for making payments for Chinese imports. Brazil is also taking steps to settle some of the trade with China in CNY. So it is not just the African countries that are using CNY for international trade. Also, recently Pakistan entered in to a deal with Russia, to import Urals crude and the settlement will be done with CNY. India is one of the few third world nations still refusing to use the Chinese Yuan. But that has more to do with the ongoing border tensions with China. 

[sana54210]

Anyone could see where this going since we're not gonna accept China to be in the equal footing of US when it comes to making policy. Its only the BRICS countries that see China to be the soon world leader which could lead to war to settle this as part of that strategic responce.

I don't really China the world leader but its still the alternative to US since many countries wants independence from US like the African countries which they will be using Yuan for their trades.

I think they are not really alternative to anyone considering the fact that they are so much in debt. I mean sure they have aggressively expending the nation by investing into other nations as well but they are making themselves weaker that way, just one governmental outreach and suddenly all of their situation would be gone.

I think it is going to be a tough situation to handle for them, between so much debt within the nation and so much lesser control of their investments outside of their nation, it is going to be a pretty difficult thing. Think about what happened to Russia, so many rich Russians had investments in other nations, and one sanctions and suddenly they are all gone, so if China attacks Taiwan, all their foreign investments will be suddenly gone.

[DrBeer]

The same will happen with the Yuan
The only difference is that India is not calling to get rid of the dollar, understanding the nonsense of the decision. China really wants to replace normal currencies in the reserves of countries with yuan, which will give in to their "call" and give up the dollar.


"Russia does not know what to do with $147bn in rupees it has amassed.
India has emerged as one of the top buyers of Russian oil after Moscow invaded Ukraine. Historically allies, the two countries are settling a greater share of the trade in national currencies after Russia was cut off from the US dollar-dominated global payments systems. Though it seems like a win-win situation for everybody, there is a problem. Russia does not know how to reap the benefits of this trade.

Moscow is currently accumulating $1 billion in rupee assets each month that remain stranded outside the country, primarily due to the lopsided trade relationship, a Bloomberg report has claimed.

Every quarter, the trade imbalance is likely to generate the equivalent of $2 billion to $3 billion that Russia can't use. Over the course of 2022, the amount would have added to an estimated $147 billion in net foreign assets built up abroad, the report added.

The sum stuck is huge and it can be gauged by the fact that Russia spent 5.51 trillion rubles or $68 billion on defence in 2022, according to a Reuters report. "

https://www.wionews.com/world/russia-does-not-know-what-to-do-with-147bn-in-rupees-it-has-amassed-599540

[Sithara007]

^^^ ₹147 billion translates to $1.78 billion US Dollars. That is around 5% of the annual trade turnover between India and Russia. And moreover, this surplus was accumulated in the first few months of the war, when the Russian traders failed to notice that the Indian Rupee is not fully convertible. Now all the trades between India and Russia are being settled in United Arab Emirates Dirham or the US Dollar. For the Rupees that has been accumulated earlier, Russia can use them to pay for Indian exports. Exports from India to Russia amount to around $3.5 billion per year.

[Uruhara]

Russia and others move to use Yuan is maybe because of the trade war between the US and China which i think affected the stability of the dollar. China's growing economic influence to internationalize the Yuan had made it attractive as an alternative for countries seeking to diversify their currency reserves. I think it is also because of the continuous economic growth of China more countries are now doing business with them and most likely they are using Yuan for transactions.

the long standing US Dollar vs the use of chinesse yuan still long way to go for international transaction.
news is just news and implementing it takes a long time or it's just a plan, it may work or maybe it's just a plan that maybe just a discourse

Some countries already use Yuan for transactions between countries. But only a few countries are BRICS members in it. So it is still too early to exaggerate about the impact of this movement. It's just that the economies of Asian countries are gradually improving and continue to experience extraordinary increases. even now Germany, Britain and America are haunted by recession. But not with several countries in Asia like my country, for example, Indonesia. here the economy is increasingly stable and continues to improve from time to time.

[woez]

I think it's too early to fully understand the impact of this trend. While it is true that the role of the yuan in global transactions is increasing, the US dollar remains the dominant global reserve currency. The stability and liquidity of the US dollar contributed to its widespread use. Although several Asian countries, including Indonesia, have stable and improving economies, this does not apply universally to all countries in this region and True, the international use of the yuan is growing, it has not significantly changed the dominance of the US dollar. Economic conditions differ from country to country, and not all Asian countries have the same economic situation.

[CPNpr]

It is only a matter of time before the use of the Chinese yuan in international transactions becomes complete. But I don't think anyone would agree to go so easily to Yuan.  But I think this is a big strategy of China from my point of view. Once the use of the yuan is fully implemented, China will be on the way to great progress.  But I don't think the US will sit idly by as the yuan replaces the dollar. I heard something a long time ago. By using your own country's currency instead of the US dollar. A few countries are connected to develop an international structure

[DrBeer]

I think it's too early to fully understand the impact of this trend. While it is true that the role of the yuan in global transactions is increasing, the US dollar remains the dominant global reserve currency. The stability and liquidity of the US dollar contributed to its widespread use. Although several Asian countries, including Indonesia, have stable and improving economies, this does not apply universally to all countries in this region and True, the international use of the yuan is growing, it has not significantly changed the dominance of the US dollar. Economic conditions differ from country to country, and not all Asian countries have the same economic situation.

Cheap, and not really secured by a stable economy, the Yuan has no INTERNATIONAL application. There is only REGIONAL use, and only in those unfortunate countries that have not understood the intent and purpose of China. And they are not about "dedollarization" at all.
You don't believe me? I can prove it very easily, but first, here's a question for you: what are the arguments, facts and financial justification of the benefits: either the rejection of the dolar, or the transition to the yuan? Will you try to give a logical answer? Well try, it will be very interesting to listen to your arguments. The problem is that trying to give a logical answer, you yourself will come to the understanding that in the above processes there is no sense, no logic or any benefits, except for the realization of "painful complexes and resentments"

[Argoo]

^^^ ₹147 billion translates to $1.78 billion US Dollars. That is around 5% of the annual trade turnover between India and Russia. And moreover, this surplus was accumulated in the first few months of the war, when the Russian traders failed to notice that the Indian Rupee is not fully convertible. Now all the trades between India and Russia are being settled in United Arab Emirates Dirham or the US Dollar. For the Rupees that has been accumulated earlier, Russia can use them to pay for Indian exports. Exports from India to Russia amount to around $3.5 billion per year.

Your example once again proves that it is very difficult to get rid of generally recognized currencies for international trade. But Russia simply has no other choice than to try to trade with other countries using their national money. After all, international sanctions have cut Russia off from the dollar and the euro. At this forum, there were suggestions that Russia could switch to the use of cryptocurrencies, in particular, bitcoin. But for this, it is necessary that the partner state also agrees to trade in cryptocurrency. And this seems to be a big problem. Probably, in Russia now there is hope for the currency of the BRICS countries, time will tell how this issue will be resolved.

[Sithara007]

Your example once again proves that it is very difficult to get rid of generally recognized currencies for international trade. But Russia simply has no other choice than to try to trade with other countries using their national money. After all, international sanctions have cut Russia off from the dollar and the euro. At this forum, there were suggestions that Russia could switch to the use of cryptocurrencies, in particular, bitcoin. But for this, it is necessary that the partner state also agrees to trade in cryptocurrency. And this seems to be a big problem. Probably, in Russia now there is hope for the currency of the BRICS countries, time will tell how this issue will be resolved.

As far as I know, Russia has stopped using western currencies such as USD, EUR, GBP and JPY. Most of the trade is now being conducted using Chinese Yuan. And trade with countries that are opposed to the usage of CNY is conducted using neutral currencies such as the United Arab Emirates Dirham (AED) and Swiss Franc (CHF). But I agree that in the end, it is near impossible to get rid of USD. Even while using CNY, AED and CNF, the traders are calculating the invoice first in United States Dollar, and then converting them to the neutral currencies.

[fruktik]

Very accurate comment!

Replacing the dollar with the yuan is an extremely stupid exercise.
It's like replacing the dollar, well, let it be with the Iranian real, or the Brazilian real ... Well, they replaced it, and then what? Instability of the economy, lack of provision with real economic power, a huge number of negative factors influencing the value of the currency, .. What BENEFITS will the one who will change the STABLE dollar to the UNSTABLE yuan/real/... get? Actions must have a clearly defined goal that brings benefits or benefits or solves some problem! But today, no matter how much anyone would like, there is NO ALTERNATIVE to the dollar.

PS About the "success of Russia" with the transition to settlements in yuan and rupees, I hope you don't need to tell?
Now China and India have what they wanted and for cheap, while Russia has a bunch of colorful papers, and the inability to exchange them for something Russia really needs

          Do you really think that "managers" from the Russian Federation are capable of taking such a step? Yes, this is sheer nonsense. They're not exactly complete idiots. All these fairy tales are aimed at the internal consumer and nothing more. Some citizens have already fallen for this chatter and threw off their dollars, replacing them with yuan. In the end, everything went, as always, not according to plan. China is on its own. He will not indulge those who are not able to deal with the problems in their own country.
        How many such processes have already been to eradicate the "green paper", but things are still there. Nothing good came of it. Indeed, to date, no country can abandon the US dollar. This will bring an incredible amount of problems with sad consequences.

[DrBeer]

Very accurate comment!

Replacing the dollar with the yuan is an extremely stupid exercise.
It's like replacing the dollar, well, let it be with the Iranian real, or the Brazilian real ... Well, they replaced it, and then what? Instability of the economy, lack of provision with real economic power, a huge number of negative factors influencing the value of the currency, .. What BENEFITS will the one who will change the STABLE dollar to the UNSTABLE yuan/real/... get? Actions must have a clearly defined goal that brings benefits or benefits or solves some problem! But today, no matter how much anyone would like, there is NO ALTERNATIVE to the dollar.

PS About the "success of Russia" with the transition to settlements in yuan and rupees, I hope you don't need to tell?
Now China and India have what they wanted and for cheap, while Russia has a bunch of colorful papers, and the inability to exchange them for something Russia really needs

          Do you really think that "managers" from the Russian Federation are capable of taking such a step? Yes, this is sheer nonsense. They're not exactly complete idiots. All these fairy tales are aimed at the internal consumer and nothing more. Some citizens have already fallen for this chatter and threw off their dollars, replacing them with yuan. In the end, everything went, as always, not according to plan. China is on its own. He will not indulge those who are not able to deal with the problems in their own country.
        How many such processes have already been to eradicate the "green paper", but things are still there. Nothing good came of it. Indeed, to date, no country can abandon the US dollar. This will bring an incredible amount of problems with sad consequences.

unfortunately you have a poor idea of the real level of idiocy of the top management of Russia! You are simply confusing the familiar concept of a "manager" with those who pretend to be them in Russia - primitive THIVES and embezzlers of public funds Yes, there is still an amazing line - this is self-hypnosis! They can inspire themselves with some kind of idiotic idea so much that they will begin to believe in it as a real, very "cool solution", and will strive to implement it!

You don’t have enough of an example with a step towards the ruble “rejection of the dollar”, when Russia gave tens of billions of dollars to China, which surprisingly promotes the topic of abandoning the dollar and yuanization, while collecting “a dollar that no one needs” from everyone
In the end, do you know what happened? China has sharply devalued the Yuan, Russia's losses amounted to many billions of dollars.

And as for the fact that Russia has turned out to be a completely idiotic situation with yuans and rupees, you can easily see for yourself by reading specialized resources.
I'll even tell you what topic to look for:
1. Russia sells oil to India, for rupees. Which, for the most part, were blocked by Indian banks. Those. oil sold - no money. I'm not even talking about dollars - they can't even get rupees.
2. Those rupees that MANAGED to receive - Russia is forbidden, INDIA, to exchange them for dollars in the Indian banking system
3. A similar situation with the Yuan and China.

Believe me, in order to understand the full meaning of the word "idiots" - you need to familiarize yourself with what TOP managers of roshii are doing

[icalical]

Tho specifically for Russia, they move to Yuan because of the US Sanction, China has really huge producing power, most of things are now made in China, so no wonder that they have the power to led other country to directly use Yuan instead of trading with them with USD.
USD clearly won't be as influential as before, so this might not as strong as before it will be more volatile. This will also affect America's political power, they used to have much influence to the global politic as other countries preferring their currency, their embargo won't be as feared as in the past. So yeah, mostly they will lose their power, but to be honest, I think they will find a way to avoid this. Don't get me wrong, I am not a US fan, its just, they have been global power for long, and they always manage to avoid their fall. One of the policy that has been applied was import band from several Chinese company, tho their saying is related to Uighur but it still has economic impact.

[fruktik]

unfortunately you have a poor idea of the real level of idiocy of the top management of Russia! You are simply confusing the familiar concept of a "manager" with those who pretend to be them in Russia - primitive THIVES and embezzlers of public funds Yes, there is still an amazing line - this is self-hypnosis! They can inspire themselves with some kind of idiotic idea so much that they will begin to believe in it as a real, very "cool solution", and will strive to implement it!

You don’t have enough of an example with a step towards the ruble “rejection of the dollar”, when Russia gave tens of billions of dollars to China, which surprisingly promotes the topic of abandoning the dollar and yuanization, while collecting “a dollar that no one needs” from everyone
In the end, do you know what happened? China has sharply devalued the Yuan, Russia's losses amounted to many billions of dollars.

And as for the fact that Russia has turned out to be a completely idiotic situation with yuans and rupees, you can easily see for yourself by reading specialized resources.
I'll even tell you what topic to look for:
1. Russia sells oil to India, for rupees. Which, for the most part, were blocked by Indian banks. Those. oil sold - no money. I'm not even talking about dollars - they can't even get rupees.
2. Those rupees that MANAGED to receive - Russia is forbidden, INDIA, to exchange them for dollars in the Indian banking system
3. A similar situation with the Yuan and China.

Believe me, in order to understand the full meaning of the word "idiots" - you need to familiarize yourself with what TOP managers of roshii are doing

         Unfortunately or fortunately, I understand perfectly well what kind of people (if you can call them that) govern (pretend to be) the country. For more than a year I have been following all the events in the Russian Federation every day and I am fully aware of all the incredible insanity.
       I'm going off topic a bit. I have a conviction that this territory was seized by sectarians. Well, how else to explain that they agree with the "chief shepherd" in absolutely everything? If we draw an analogy with other sects, then all the signs are on the face.
        I sometimes find it funny even to hear the idea that they want to abandon the dollar. Especially in those moments when the next official finds cash in euros and dollars. There's a curtain...
         Indeed, this whole state apparatus is so stupid that the most ridiculous and reckless proposal is embodied in reality in the form of a bill.
         Recently, Russia is being bred and thrown even by small countries. This is the result of the rule of incompetent people.

[Sithara007]

I am worried about one factor. One of the advantages with the US Dollar is that it is more or less immune from market meltdowns. Because if there is a recession in the United States, then the markets around the world will get impacted. If the USD gets weak, then other fiat currencies will also go down. That is not the case with Chinese Yuan. If there is a localized market meltdown in China/Hong Kong, it will not have any impact in other markets. If the CNY goes down against the US Dollar, then those countries that have Yuan in reserves will see their net worth getting reduced.

[DrBeer]

unfortunately you have a poor idea of the real level of idiocy of the top management of Russia! You are simply confusing the familiar concept of a "manager" with those who pretend to be them in Russia - primitive THIVES and embezzlers of public funds Yes, there is still an amazing line - this is self-hypnosis! They can inspire themselves with some kind of idiotic idea so much that they will begin to believe in it as a real, very "cool solution", and will strive to implement it!

You don’t have enough of an example with a step towards the ruble “rejection of the dollar”, when Russia gave tens of billions of dollars to China, which surprisingly promotes the topic of abandoning the dollar and yuanization, while collecting “a dollar that no one needs” from everyone
In the end, do you know what happened? China has sharply devalued the Yuan, Russia's losses amounted to many billions of dollars.

And as for the fact that Russia has turned out to be a completely idiotic situation with yuans and rupees, you can easily see for yourself by reading specialized resources.
I'll even tell you what topic to look for:
1. Russia sells oil to India, for rupees. Which, for the most part, were blocked by Indian banks. Those. oil sold - no money. I'm not even talking about dollars - they can't even get rupees.
2. Those rupees that MANAGED to receive - Russia is forbidden, INDIA, to exchange them for dollars in the Indian banking system
3. A similar situation with the Yuan and China.

Believe me, in order to understand the full meaning of the word "idiots" - you need to familiarize yourself with what TOP managers of roshii are doing

        Unfortunately or fortunately, I understand perfectly well what kind of people (if you can call them that) govern (pretend to be) the country. For more than a year I have been following all the events in the Russian Federation every day and I am fully aware of all the incredible insanity.
       I'm going off topic a bit. I have a conviction that this territory was seized by sectarians. Well, how else to explain that they agree with the "chief shepherd" in absolutely everything? If we draw an analogy with other sects, then all the signs are on the face.
        I sometimes find it funny even to hear the idea that they want to abandon the dollar. Especially in those moments when the next official finds cash in euros and dollars. There's a curtain...
         Indeed, this whole state apparatus is so stupid that the most ridiculous and reckless proposal is embodied in reality in the form of a bill.
         Recently, Russia is being bred and thrown even by small countries. This is the result of the rule of incompetent people.

As a former resident of the USSR, I will explain
Sectarians against the background of those who seized this territory are lovely, friendly, smart people!
The fact is that, in order to understand the structure of power, and most importantly - the GOALS of power, it is necessary to study the history of the formation of the USSR, from about 1917, from the moment of the Revolution. There was a short period when a "provisional government" was in power, and then it was replaced by the so-called "proletariat". In fact, this is an absolutely marginalized group of people who are thirsty for power, total, eager to realize their sadistic fantasies - from bastard control of the masses to trivial violence against those who cannot defend themselves, plus total lies, meanness and cowardice. Read about the concept of the "red terror" of the ideologist of the USSR - Lenin. Parts of this theory were then used in Kompuchia, and in North Korea, and all other bastard regimes of the world. Even Nazism, against the background of the "Soviet system" (and now it is officially called RASHISM), was a "cute regime." Just pick up the data on how many people were destroyed by Nazism, and how much the communist plague that the USSR spread. And as a result - what do you think - such a regime can generate and bring to the top smart, developed, pragmatic, educated people? Of course not - and now we are seeing it. The only thing that saved them was the huge deposits of oil and gas that provided them with a comfortable life, even if they were idiots. Oil and gas sales plummeted, and "all the nonsense became visible"

[pooya87]

Maybe just coincidence but ever since France made some trades with China using Yuan instead of dollar the country has been burning in a wave of protests, riots and unrest. As we speak the armed French forces with armored vehicles are in the streets of France suppressing people protesting police brutality with nearly 1000 people arrested and hundreds of police forces wounded (no solid civilian casualties reported). The curfew, strict restrictions on social media and the heavy censorship of the mainstream media prevents further details from coming out.

Granted for the past ~5 years there has been large protests in France (mostly Yellow Vests) but things got worse from the day Macron got closer to China, specially after his visit and his speech where he declared that France has to become more independent from US

[DrBeer]

I am worried about one factor. One of the advantages with the US Dollar is that it is more or less immune from market meltdowns. Because if there is a recession in the United States, then the markets around the world will get impacted. If the USD gets weak, then other fiat currencies will also go down. That is not the case with Chinese Yuan. If there is a localized market meltdown in China/Hong Kong, it will not have any impact in other markets. If the CNY goes down against the US Dollar, then those countries that have Yuan in reserves will see their net worth getting reduced.

Dear Sithara007 ! You are making amazing discoveries !
It is true that the world came to this long ago, and that is why it chose the dollar as the currency of international settlements!
Once again I repeat: you can not take any piece of paper (rouble, yuan, real, rupee, peseti, ....) and make it international currency!
To do this a currency must have a large set of characteristics !
I will just start to list them:
- world weight
- economy
- political weight
- army
- technologies
- ....

And the problem is that all of these characteristics correspond ONLY to the U.S. DOLLAR ! Imagine - we're back to what I've been writing about for a long time - just "wanting" and replacing the dollar is NOTHING. There is no substitute for it yet ! And even the EURO - does not have such a set of characteristics!
And now you understand that those who squeal "we're changing from the dollar to something else" are either idiots, or want to set someone up, or, as China does - to deceive their not smart "friends" and sell them their own "shitcoincurrency"

[speeder]

I don't think using the yuan instead of the dollar will be as successful. Among other countries, China has temporarily influenced some countries in this regard. China is one of the most commercially successful countries in the world. China is trying to use the yuan to take over the economy. I have heard that some countries have started using the yuan commercially. However, not all countries seem to accept the use of the yuan. The use of the yuan is a political issue. If the political environment eases, the dollar will hold its own value again

[iv4n]

I don't think using the yuan instead of the dollar will be as successful. Among other countries, China has temporarily influenced some countries in this regard. China is one of the most commercially successful countries in the world. China is trying to use the yuan to take over the economy. I have heard that some countries have started using the yuan commercially. However, not all countries seem to accept the use of the yuan. The use of the yuan is a political issue. If the political environment eases, the dollar will hold its own value again

In the end, Dollars, Rubles, Euros, Yuans, and all other fiat currencies are almost the same. Replace one shit with another... I don't think it will work fine, at least not for most of us ordinary people. I think we can do better...

The big picture is clear... fiat currencies are made by people who did some horrible things in the past, and they are still doing so many bad things around, why would we still trust them? The fortune of some big countries and players is made on blood. Simple as that...

It's why I like crypto, I think it's the chance that the world needs for a better future.

[Smartprofit]

I don't think using the yuan instead of the dollar will be as successful. Among other countries, China has temporarily influenced some countries in this regard. China is one of the most commercially successful countries in the world. China is trying to use the yuan to take over the economy. I have heard that some countries have started using the yuan commercially. However, not all countries seem to accept the use of the yuan. The use of the yuan is a political issue. If the political environment eases, the dollar will hold its own value again

The Chinese Yuan is a very poor store of value.  This is because China is a country that mainly exports goods abroad. 

Chinese companies are not interested in strengthening the Chinese yuan.  This will lead to an increase in the cost of goods and make the export product uncompetitive. 

However, the Chinese yuan can be used in cross-border transactions, as many useful Chinese goods can be bought with this currency. 

This is the difference between the Chinese yuan and other regional currencies (for example, the Indian rupee).

[DrBeer]

I don't think using the yuan instead of the dollar will be as successful. Among other countries, China has temporarily influenced some countries in this regard. China is one of the most commercially successful countries in the world. China is trying to use the yuan to take over the economy. I have heard that some countries have started using the yuan commercially. However, not all countries seem to accept the use of the yuan. The use of the yuan is a political issue. If the political environment eases, the dollar will hold its own value again

The Chinese Yuan is a very poor store of value.  This is because China is a country that mainly exports goods abroad.  

Chinese companies are not interested in strengthening the Chinese yuan.  This will lead to an increase in the cost of goods and make the export product uncompetitive.  

However, the Chinese yuan can be used in cross-border transactions, as many useful Chinese goods can be bought with this currency.  

This is the difference between the Chinese yuan and other regional currencies (for example, the Indian rupee).

Yes, it is convenient to buy Chinese goods from China, saving only the Chinese economy... I.e. we get - what they are trying to accuse the U.S. - allegedly the dominance of the dollar and the work of the dollar only on the U.S. economy
True, the U.S. dollar allows you to buy ANY goods, any country, anywhere you choose. And that's a huge difference. By the way, that's exactly what China is aiming for - the yuanization of its partners, who are not the smartest. India has also succeeded in this business, and is also playing a fun game with Russia Now when Russia sells oil for rupees it does not understand where a significant portion of funds went, why there is a catastrophic shortage of dollars, and what to do with the rupees it has!   As it turned out - India does not sell all of its goods to Russia for its rupees! What a beauty, right? The most demanded and competitive ones are welcome ... for dollars or euros

[Sithara007]

✂✂✂
India has also succeeded in this business, and is also playing a fun game with Russia Now when Russia sells oil for rupees it does not understand where a significant portion of funds went, why there is a catastrophic shortage of dollars, and what to do with the rupees it has!   As it turned out - India does not sell all of its goods to Russia for its rupees! What a beauty, right? The most demanded and competitive ones are welcome ... for dollars or euros

The usage of Rupee in international trade between India and Russia was discontinued sometime back. Now the majority of the trade is being conducted using the US Dollar, and a part of the trade is being done using the AED (United Arab Emirates Dirham). And this month, some of the Indian refineries have purchased a few Russian crude oil cargoes using CNY (Chinese Yuan). Details can be found here:

https://www.bloomberg.com/news/articles/2023-07-03/india-state-refiners-consider-paying-in-yuan-for-russian-crude

BPCL and HPCL want to continue with their payments in USD/AED, but the emergence of new sanctions have made this much harder now. Obviously CNY is an attractive option, but the government is not that excited.

[pooya87]

If bloomberg is to be believed, that still doesn't change anything about the main subject here which is "dedollarisation". There may be some conflicts of interests between countries about what currency to use but they still are not going back to dollar. As the article also claims that the Indian refineries are using Yuan and Derham (not dollar) to purchase Russian oil.

[Pierre 2]

I still feel like people are exaggerating dedollarisation process. Well yeah people are using dollar like %5-10 less but what do they use instead? Euros. Pounds. etc. Yuan can't be competitive against Dollar in near future period. United States is still owning financial markets literally. It can create nearly unlimited debt. People care about currencies that will not constantly experience devaluations, USD is still the best one along with Swiss Franc in that topic in my opinion. Ask Russians if they prefer ruble to usd honestly. Most will not.

[Wimex]

This year there has been a situation of tension with the US dollar, the debt controversy that it faces together with events such as the bankruptcy of recognized banking centers, has called into question whether even the currency of this country is solid enough to to continue using it as a global investment, it is due to these events that a controversy began to seek other fiat currency alternatives that can step on the heels of the dollar and be just as effective in terms of stability against inflation, the result of this was directed towards China's yuan as a possible replacement, and seeing the union of certain countries to make payment in this asset instead of using the one that for many years has led the market, causes tension and instability between nations…. Because let's be clear, what happens to the dollar affects all those regions that still use it, generating a chain of instability in a general way.

These three world powers, China, Russia and the United States, have always competed to keep the throne and be the most powerful in all senses...... the union of two great pillars can defeat and underestimate the power that their rival has had for so long common…..that is why I consider that this action between russia and china is a possible strategy to destabilize the united states and to athose who support this country.

[DrBeer]

✂✂✂
India has also succeeded in this business, and is also playing a fun game with Russia Now when Russia sells oil for rupees it does not understand where a significant portion of funds went, why there is a catastrophic shortage of dollars, and what to do with the rupees it has!   As it turned out - India does not sell all of its goods to Russia for its rupees! What a beauty, right? The most demanded and competitive ones are welcome ... for dollars or euros

The usage of Rupee in international trade between India and Russia was discontinued sometime back. Now the majority of the trade is being conducted using the US Dollar, and a part of the trade is being done using the AED (United Arab Emirates Dirham). And this month, some of the Indian refineries have purchased a few Russian crude oil cargoes using CNY (Chinese Yuan). Details can be found here:

https://www.bloomberg.com/news/articles/2023-07-03/india-state-refiners-consider-paying-in-yuan-for-russian-crude

BPCL and HPCL want to continue with their payments in USD/AED, but the emergence of new sanctions have made this much harder now. Obviously CNY is an attractive option, but the government is not that excited.

Oh dear Sithara007 , what went wrong?! ))
After all, everything was so good, without the dollar, very profitable, in "strong and secure rubles, yuan and rupees" ! What "broke"?
 And as always, why are you silent about the real picture ? About the blocking of Russian funds by India, about the ban on the exchange of rupees for dollars, which Russia was asking for so much!  About the restrictive measures to sell many groups of goods for rupees in russia ? Why are you silent about these "little nuances"? The fact that India bought oil from russia for yuan speaks of many negative factors for both India and russia ! By the way - can you tell me what for yuan russia can buy in china ? Maybe servers ? Or equipment for 5G networks , or maybe industrial equipment ? Most likely... nails and cheap cell phones Because for the rest China demands... DOLLARS ! Surprising, right ?!

[Uruhara]

I still feel like people are exaggerating dedollarisation process. Well yeah people are using dollar like %5-10 less but what do they use instead? Euros. Pounds. etc. Yuan can't be competitive against Dollar in near future period. United States is still owning financial markets literally. It can create nearly unlimited debt. People care about currencies that will not constantly experience devaluations, USD is still the best one along with Swiss Franc in that topic in my opinion. Ask Russians if they prefer ruble to usd honestly. Most will not.

The process of dedollarization does require a long process. and I also agree that it's not going to happen anytime soon. Because the dominance of the dollar has been very strongly attached to the global economic order and in current global transactions. In fact, several countries also use the US Dollar as currency because they no longer have their own country's currency due to extreme inflation in the past. but in the future I think de-dollarization will really materialize if the US is negligent and does not strengthen its position in the eyes of the world.

[Sayeds56]

What does this new development make for the US economy and the US dollar in the coming days and years to come.[/b]
Give your personal opinion on this development!

I think the primary reason for Russia to consider accepting Chinese currency Yuan for international transactions of its oil sales, is to bypass US financial system and reduce its vulnerability to Economic sanction imposed following the Ukraine war. It can provide an alternative avenue for conducting business and lessen the impact of sanctions. Secondly, it can help Russia to diversify its foreign exchange reserves which are currently heavily weighted towards US dollar and Euro. By doing so Russia can mitigate the impact of fluctuations of these currencies on its economy.

[Sithara007]

Oh dear Sithara007 , what went wrong?! ))
After all, everything was so good, without the dollar, very profitable, in "strong and secure rubles, yuan and rupees" ! What "broke"?
 And as always, why are you silent about the real picture ? About the blocking of Russian funds by India, about the ban on the exchange of rupees for dollars, which Russia was asking for so much!  About the restrictive measures to sell many groups of goods for rupees in russia ? Why are you silent about these "little nuances"? The fact that India bought oil from russia for yuan speaks of many negative factors for both India and russia ! By the way - can you tell me what for yuan russia can buy in china ? Maybe servers ? Or equipment for 5G networks , or maybe industrial equipment ? Most likely... nails and cheap cell phones Because for the rest China demands... DOLLARS ! Surprising, right ?!

Well.. it is unfortunate that the Indian government hasn't made the INR fully convertible. As a result, the Russians don't want to trade using this currency. It benefits no one, as the traders are being forced to use currencies such as Chinese Yuan, United Arab Emirates Dirham and Swiss Franc along with the US Dollar. The fact that the Russian traders prefer CNY (despite strong resistance by Indians) prove that they don't have any issues in accepting this currency. And from what I have heard, they are preferring CNY instead of US Dollar.

[DrBeer]

Oh dear Sithara007 , what went wrong?! ))
After all, everything was so good, without the dollar, very profitable, in "strong and secure rubles, yuan and rupees" ! What "broke"?
 And as always, why are you silent about the real picture ? About the blocking of Russian funds by India, about the ban on the exchange of rupees for dollars, which Russia was asking for so much!  About the restrictive measures to sell many groups of goods for rupees in russia ? Why are you silent about these "little nuances"? The fact that India bought oil from russia for yuan speaks of many negative factors for both India and russia ! By the way - can you tell me what for yuan russia can buy in china ? Maybe servers ? Or equipment for 5G networks , or maybe industrial equipment ? Most likely... nails and cheap cell phones Because for the rest China demands... DOLLARS ! Surprising, right ?!

Well.. it is unfortunate that the Indian government hasn't made the INR fully convertible. As a result, the Russians don't want to trade using this currency. It benefits no one, as the traders are being forced to use currencies such as Chinese Yuan, United Arab Emirates Dirham and Swiss Franc along with the US Dollar. The fact that the Russian traders prefer CNY (despite strong resistance by Indians) prove that they don't have any issues in accepting this currency. And from what I have heard, they are preferring CNY instead of US Dollar.

Sithara007 you are a smart man, it is pleasant to communicate with you! That's right - local currencies for international settlements turn out to be inconvenient and limited in application. And that is why the world uses the convenient U.S. DOLLAR. Not the rupee, not the yuan, but the DOLLAR ! Because it is the only currency with which it is EASY to buy everything the world economy produces. That's why trying to create the appearance of "dedolarization" is the way into this kind of inconvenience ! And you will soon realize that the yuanization of your "foolish" neighbors is not synonymous with dedolarization ! China is not abandoning the dollar, just like the terrorist country russia, they are critically dependent on international currency revenues, because they depend on the world market, not the other way around !

[Sithara007]

Sithara007 you are a smart man, it is pleasant to communicate with you! That's right - local currencies for international settlements turn out to be inconvenient and limited in application. And that is why the world uses the convenient U.S. DOLLAR. Not the rupee, not the yuan, but the DOLLAR ! Because it is the only currency with which it is EASY to buy everything the world economy produces. That's why trying to create the appearance of "dedolarization" is the way into this kind of inconvenience ! And you will soon realize that the yuanization of your "foolish" neighbors is not synonymous with dedolarization ! China is not abandoning the dollar, just like the terrorist country russia, they are critically dependent on international currency revenues, because they depend on the world market, not the other way around !

I don't think that the Russians are facing any issue in using Chinese Yuan, because CNY is easily convertible with other currencies and also China is the no.1 trade partner of Russia. And more importantly, unlike the case with Russia-India trade, the trade relation between Russia and China is more asymmetric with trade balance being almost equal. Russia imports a lot of stuff from China, including electronics, automobiles, textiles, medicines, chemicals, fruits and vegetables. And most of this trade has shifted to CNY.

[flyingcarpet]

What does this new development make for the US economy and the US dollar in the coming days and years to come.[/b]
Give your personal opinion on this development!

I think the primary reason for Russia to consider accepting Chinese currency Yuan for international transactions of its oil sales, is to bypass US financial system and reduce its vulnerability to Economic sanction imposed following the Ukraine war. It can provide an alternative avenue for conducting business and lessen the impact of sanctions. Secondly, it can help Russia to diversify its foreign exchange reserves which are currently heavily weighted towards US dollar and Euro. By doing so Russia can mitigate the impact of fluctuations of these currencies on its economy.

When a country is embargoed, it suffers economically. Since Russia is at war and embargoed, it has to protect its economy. There are various ways to do this. It is trying to take certain steps to reduce the influence of the dollar. Russia is trying to get closer to China to disable the US financial system. It's a logical move for Russia. At the same time, it is necessary to prevent the negative effects of dollar fluctuations in many countries. Wars are now fought over the economy.

[Sayeds56]

When a country is embargoed, it suffers economically. Since Russia is at war and embargoed, it has to protect its economy. There are various ways to do this. It is trying to take certain steps to reduce the influence of the dollar. Russia is trying to get closer to China to disable the US financial system. It's a logical move for Russia. At the same time, it is necessary to prevent the negative effects of dollar fluctuations in many countries. Wars are now fought over the economy.

The sanctions and embargoes can yield targeted outcomes in the short term, however their extensive use compels the affected entities to find alternatives and become more reliant on their local resources.
It is also important to note that characterizing wars as conflicts fought over economy is over simplification. While economic factors can play significant role in geopolitical conflicts, wars often involve complex dynamics, that includes political, ideological, territorial and historical factors. Economic factors alone don't fully capture the complexities of wars.

[DrBeer]

Sithara007 you are a smart man, it is pleasant to communicate with you! That's right - local currencies for international settlements turn out to be inconvenient and limited in application. And that is why the world uses the convenient U.S. DOLLAR. Not the rupee, not the yuan, but the DOLLAR ! Because it is the only currency with which it is EASY to buy everything the world economy produces. That's why trying to create the appearance of "dedolarization" is the way into this kind of inconvenience ! And you will soon realize that the yuanization of your "foolish" neighbors is not synonymous with dedolarization ! China is not abandoning the dollar, just like the terrorist country russia, they are critically dependent on international currency revenues, because they depend on the world market, not the other way around !

I don't think that the Russians are facing any issue in using Chinese Yuan, because CNY is easily convertible with other currencies and also China is the no.1 trade partner of Russia. And more importantly, unlike the case with Russia-India trade, the trade relation between Russia and China is more asymmetric with trade balance being almost equal. Russia imports a lot of stuff from China, including electronics, automobiles, textiles, medicines, chemicals, fruits and vegetables. And most of this trade has shifted to CNY.

Here I support you, assess you as very smart, and then you are such a bah, and with all my might prove that you are not!

Well, let's take the long way. A simple question - you ask yourself - what does China sell for Yuan to Russia? And try to answer it yourself by researching the subject area?

What you have listed - thank you for your work, everything is correct. But with a little clarification, which for some reason you "chronically dislike"

I will return for a second to my post, which you did not deny, and you silently accepted it, because you understand that it is true, and easily provable.

The post was about a terrorist country having a problem in trade relations with India. And the problem is that Russia, selling oil to India at a bargain price, not only doesn't get any of the money in supplies, but it can't use the money it gets as it wants. Let me make it clear again - India has banned the sale of many critically important and competitive goods to Russia for RUPIs. But it has allowed it to sell from... FOR DOLLARS

Do you think China is stupider than India? Shall I tell you what products from china come to russia in exchange for yuan ? Which Chinese products are sold to Russia only FOR DOLLARS? 
Or you'll pretend you don't know what I mean?

[Sithara007]

^^^ You assume that China has a deep love affair with US Dollar. Then why they are offloading a part of their reserves in US treasury bonds? Why they have given their approval for the common BRICS currency, which as CNY having the highest weightage? China is trying to move away from USD and there is no confusion related to this. But they are intelligent enough to understand that doing so takes a lot of time and it can't be done in a fortnight. And also, even for trade using CNY/RUR, values are first calculated in USD and then converted to the other currency.

[karabiber]

What does this new development make for the US economy and the US dollar in the coming days and years to come.[/b]
Give your personal opinion on this development!

I think the primary reason for Russia to consider accepting Chinese currency Yuan for international transactions of its oil sales, is to bypass US financial system and reduce its vulnerability to Economic sanction imposed following the Ukraine war. It can provide an alternative avenue for conducting business and lessen the impact of sanctions. Secondly, it can help Russia to diversify its foreign exchange reserves which are currently heavily weighted towards US dollar and Euro. By doing so Russia can mitigate the impact of fluctuations of these currencies on its economy.

It is almost impossible to destroy the dominance of the ABD Dollar. Russia and China which are opposite the NATO Bloc, can make an agreement between them and trade in Yuan and they have already implemented this. It is also quite impossible for Russia to sell energy, which is one of the biggest sources of income in exchange for Yuan. There is no dominance of national currencies in world trade. Because countries are not self-sufficient as before and they need US Dollars for foreign trade. If Russia makes its energy exports by buying Yuan, it may enter into a payments crisis. This is because most of their income will be in Yuan and their payments will be in US Dollars. First of all, it is necessary to reduce the dependence on the US Dollar over time in order to end this order and this is a process that will take many years.

[DrBeer]

^^^ You assume that China has a deep love affair with US Dollar. Then why they are offloading a part of their reserves in US treasury bonds? Why they have given their approval for the common BRICS currency, which as CNY having the highest weightage? China is trying to move away from USD and there is no confusion related to this. But they are intelligent enough to understand that doing so takes a lot of time and it can't be done in a fortnight. And also, even for trade using CNY/RUR, values are first calculated in USD and then converted to the other currency.

Here everything is very simple.
1. You can neither prove nor deny any information about China's foreign exchange reserves, including the amount of treasury bills. China has CLOSED and CLOSED this data. The data released to the public is sometimes very vague and cannot be used to get a complete picture.
2. China sells most of its most demanded goods - ONLY FOR THE DOLLAR !
3. China's economy, as much as you don't like it, is totally dependent on Western technology. No - China can produce its own consumer goods. But competitive goods with high added value. china cannot produce without western technology ! That's why, after the migration of Western technology from China has begun, China is hysterically looking for a way out, including through "pressure and agreement. This is what I mean: From August 1, 2023, gallium and germanium, as well as their chemical compounds, will be subject to export controls. According to the Chinese side, the measure is aimed at protecting national security. But at the same time China says - if you don't take technology out of China - we will lift these restrictions ! By the way China sells gallium and germanium ONLY for dollars
4. Regarding the fantasy about "NY/RUR values are first calculated in US dollars and then converted to another currency". On the one hand it seems to be true. But the nuances, which you always forget about for some reason
On the example of oil bought by India for rupees. Urals, on the market for $50+. India gets a huge discount. The total dollar value of a barrel is approximately $35. Everything seems to be fine. But this is not how calculations are made
Firstly, for inter-state settlements India uses a very specific cross-rate, which is calculated through the chain rupee-dollar-ruble, taking into account the risks of the ruble; as a result Russia loses another 3-5%.
H u i fnal - part of the money is blocked in accounts in Indian banks, and the part that actually ends up in Russia - you can only buy "bananas" conditionally with them, and the question of exchanging rupees for dollars is not even considered. Do you think that China is stupider than India in "undressing" Russia?  It's exactly the same picture there....

[be.open]

^^^ You assume that China has a deep love affair with US Dollar. Then why they are offloading a part of their reserves in US treasury bonds? Why they have given their approval for the common BRICS currency, which as CNY having the highest weightage? China is trying to move away from USD and there is no confusion related to this. But they are intelligent enough to understand that doing so takes a lot of time and it can't be done in a fortnight. And also, even for trade using CNY/RUR, values are first calculated in USD and then converted to the other currency.

Here everything is very simple.
1. You can neither prove nor deny any information about China's foreign exchange reserves, including the amount of treasury bills. China has CLOSED and CLOSED this data. The data released to the public is sometimes very vague and cannot be used to get a complete picture.
2. China sells most of its most demanded goods - ONLY FOR THE DOLLAR !
3. China's economy, as much as you don't like it, is totally dependent on Western technology. No - China can produce its own consumer goods. But competitive goods with high added value. china cannot produce without western technology ! That's why, after the migration of Western technology from China has begun, China is hysterically looking for a way out, including through "pressure and agreement. This is what I mean: From August 1, 2023, gallium and germanium, as well as their chemical compounds, will be subject to export controls. According to the Chinese side, the measure is aimed at protecting national security. But at the same time China says - if you don't take technology out of China - we will lift these restrictions ! By the way China sells gallium and germanium ONLY for dollars
4. Regarding the fantasy about "NY/RUR values are first calculated in US dollars and then converted to another currency". On the one hand it seems to be true. But the nuances, which you always forget about for some reason
On the example of oil bought by India for rupees. Urals, on the market for $50+. India gets a huge discount. The total dollar value of a barrel is approximately $35. Everything seems to be fine. But this is not how calculations are made
Firstly, for inter-state settlements India uses a very specific cross-rate, which is calculated through the chain rupee-dollar-ruble, taking into account the risks of the ruble; as a result Russia loses another 3-5%.
H u i fnal - part of the money is blocked in accounts in Indian banks, and the part that actually ends up in Russia - you can only buy "bananas" conditionally with them, and the question of exchanging rupees for dollars is not even considered. Do you think that China is stupider than India in "undressing" Russia?  It's exactly the same picture there....

Fortunately, you can see the dynamics of China's investment in US Treasury bonds on the US Treasury website.

[pooya87]

Fortunately, you can see the dynamics of China's investment in US Treasury bonds on the US Treasury website.

That's some interesting data, thanks for the link.
I ran some analysis on it and it shows what we've been saying over the past year. A lot of countries have been abandoning US slowly but surely, some of which are in the Eastern bloc.

Amount-wise we have a total of $253 billion dollar dumped over the specified year (Jan 2022 to Jan 2023) with Japan ($195.5 billion) and China ($174.4 billion) on top as the "biggest dumpers".

Percentage-wise we have Sweden on top with 28% dump which is $15 billion. The more interesting one is the terrorist organization known as Israel that has dumped 28% of its securities and bonds worth $17.7 billion.
After that we have France (21%-$49 billion), Ireland (18%-$55.2 billion), China (17%-$174.4 billion), Thailand (15%-$9.3 billion), Korea (15%-$18 billion), Japan (15%-$195.5 billion), Vietnam (14%-$6 billion), Kuwait (14%-$7.3 billion) as the "top dumpers".

There are of course some interesting names in the list that have been trying to "pump" money into the failing US economy and some of them are the  usual suspects such as UAE that has increased its holdings by $20 billion (45%). Interestingly enough Saudi Arabia (the 51st state) that has actually dumped 7% of its holdings equal to $8.4 billion.
The biggest "pumper" position goes to Belgium with $88.1 billion bought securities and bonds (36% increase). I have to dig deeper for more reliable information but with some quick search Belgium as one of the handful of European countries with LNG terminals have increased its Russian LNG imports by a lot (nearly double). It looks like they were "taxed" by US for the increased income #cashcow

[DrBeer]

Fortunately, you can see the dynamics of China's investment in US Treasury bonds on the US Treasury website.

I know this data, I expected to see it, and I confirm - it is true
As is the truth that "China CLOSED all of its data on foreign exchange reserves. The data released to the public is sometimes very vague and cannot be used to get the full picture." You won't show data on China's foreign exchange reserves other than analysts' assumptions.

Regarding the information you cite: Yes, in 12 months, China has reduced (according to official U.S. data) about 16% of its investments in U.S. government bonds. If you do a simple operation, and compare with other countries, China is by no means the leader in terms of government bond dumping. That said, you can see that the countries are about 50/50 split between those who have reduced their holdings a bit and those who have increased them a bit.
I understand if China left 50% for the year. And so - yes there is a slight change, but it can't be called "China has abandoned U.S. government obligations and withdrawn all funds from them.

Oh, and most importantly You somehow selectively took the period, forgetting about the current date ? Coincidence?

And here is the full spreadsheet with ALL the information on the current date

https://ticdata.treasury.gov/resource-center/data-chart-center/tic/Documents/slt_table5.html

Tell me - what is the increase from 849.0 on 2023-02 to 868.9 on 2023-04 ? In 2 months - a 10% increase in investment ...Or is that not it, it's about another ?!

[be.open]

Fortunately, you can see the dynamics of China's investment in US Treasury bonds on the US Treasury website.

I know this data, I expected to see it, and I confirm - it is true
As is the truth that "China CLOSED all of its data on foreign exchange reserves. The data released to the public is sometimes very vague and cannot be used to get the full picture." You won't show data on China's foreign exchange reserves other than analysts' assumptions.

Regarding the information you cite: Yes, in 12 months, China has reduced (according to official U.S. data) about 16% of its investments in U.S. government bonds. If you do a simple operation, and compare with other countries, China is by no means the leader in terms of government bond dumping. That said, you can see that the countries are about 50/50 split between those who have reduced their holdings a bit and those who have increased them a bit.
I understand if China left 50% for the year. And so - yes there is a slight change, but it can't be called "China has abandoned U.S. government obligations and withdrawn all funds from them.

Oh, and most importantly You somehow selectively took the period, forgetting about the current date ? Coincidence?

And here is the full spreadsheet with ALL the information on the current date

https://ticdata.treasury.gov/resource-center/data-chart-center/tic/Documents/slt_table5.html

Tell me - what is the increase from 849.0 on 2023-02 to 868.9 on 2023-04 ? In 2 months - a 10% increase in investment ...Or is that not it, it's about another ?!

Dude, lol. You have very serious problems with math, if you see a 10% increase here, try using the help of a calculator.

If you look at the history of China's investment in US Treasury bonds over a longer time period, it turns out that China has been systematically reducing its investment in US government debt for about ten years, while increasing investment in gold. The maximum level of China's investments in US Treasury bonds exceeded 1.2 trillion dollars, that is, over ten years, China has reduced its investment in US government debt by about one and a half times.

[pooya87]

If you do a simple operation, and compare with other countries, China is by no means the leader in terms of government bond dumping.

China is literary the second biggest dumper after Japan dumping a massive $174.4 billion in a year as I pointed out above in details.

Tell me - what is the increase from 849.0 on 2023-02 to 868.9 on 2023-04 ? In 2 months - a 10% increase in investment ...Or is that not it, it's about another ?!

$19.9 billion in $849.0 billion is 2.34% increase not 10%!

It is an interesting short term move though, specially since overall move is still dump down from $1033.8 billion.
It could possibly be linked to the interest rate hike in the same period from 4.33% to 4.83% making this move profitable in short term. Which could also explain the stop and the small $400 million decrease on 2023-04.

[DrBeer]

Dude, lol. You have very serious problems with math, if you see a 10% increase here, try using the help of a calculator.

If you look at the history of China's investment in US Treasury bonds over a longer time period, it turns out that China has been systematically reducing its investment in US government debt for about ten years, while increasing investment in gold. The maximum level of China's investments in US Treasury bonds exceeded 1.2 trillion dollars, that is, over ten years, China has reduced its investment in US government debt by about one and a half times.

...
$19.9 billion in $849.0 billion is 2.34% increase not 10%!
It is an interesting short term move though, specially since overall move is still dump down from $1033.8 billion.
It could possibly be linked to the interest rate hike in the same period from 4.33% to 4.83% making this move profitable in short term. Which could also explain the stop and the small $400 million decrease on 2023-04.

You guys are beautiful ! This was done on purpose, so that you yourself checked the glaring error, and you yourself wrote that the period that you specified - was deliberately "cut" not to show the growth, and then you yourself confirm that the growth is "but in the figure error" !
Thank you for the clarification, you did it perfectly !
Yes, 2 and a small percentage, in two months. And look at the dynamics of "China's rejection of U.S. government bonds" in the period you intentionally chose - virtually identical figures! Thank you again for your accuracy

So, back to the topic, is it still "China's global rejection of US bonds", or is the market situation due to many problems in the world economy, when small parts of the "eggs" are shifted to other baskets ? As you noticed - a noticeable downturn started to show up in 2021-2022. Shall I tell you about the causes and situation of the world economy ? No ? As you can see - the overall picture shows some decline in investment by other countries in the U.S. papers. And it's quite logical, based on the situation in the economy, the next round of "just look at what state debt, there will definitely be a default". Now the situation has stabilized, and the situation begins to change the vector. Countries have started to return money to U.S. government bonds

[stompix]

Doomsayers cult two years ago:
China is holding all of US debt, US is owned by China, Us puppet of China, US bankrupt
Doomsayers cult now:
China is dumping all of US debt, China no longer holds US debt, US is bankrupt!

Going over the obvious lack of knowledge of what those bonds actually are and what purpose they serve here is a really hard pill for you to swallow:

According to data from the US Department of the Treasury, China's holdings of US agency bonds — bonds issued by US government-sponsored agencies like mortgage buyer Freddie Mac — stood at $259.99 billion as of January, up by $55.3 billion, or 27 percent, from a year ago.

Simply said, China is just converting treasury bonds to us agency ones because they are offering higher yields.

Experts said a key driver of China's rising holdings of US agency debt was its higher yield over US Treasuries.

A recent Bloomberg report said that the US agency bonds' yield premium over US Treasuries has widened over the past year, with the option-adjusted spread between US agency bonds and Treasuries increasing to about 28 basis points as of mid-February, up from about 15 basis points a year ago.

Oh, and I'm sure every single one of you is going to label this as fake news, even if it comes from the official paper of the CCP.

Meanwhile, how are BRICS currencies doing?
If the USD is dying, why are the BRICS currencies going lower against it?



I would have mentioned also the Iranian rial but that thing went down so bad it's destroying every graphic like the Zimbabwe dollar.

[Mame89]

Give your personal opinion on this development!

Personal opinion, this step should have been implemented by pacific countries or developing countries for a long time to escape the pressure of the dollar. just remember how George Soros could destroy the countries of Southeast Asia with his cunning tricks. countries should not depend on just one currency for transactions in various countries.

And this is one way to reduce America's domination and hegemony in the world. because America has too often behaved and acted beyond limits and arbitrarily towards other countries that are not in line with it. The Chinese Yuan is slowly but surely being used by the countries of Russia, Iran, Saudi Arabia, the UAE, the Middle East, Indonesia, the African continent etc. That way the dominance of the US Dollar will begin to diminish, this will definitely happen although we don't know when it will work.

[pooya87]

You guys are beautiful ! This was done on purpose, so that you yourself checked the glaring error, and you yourself wrote that the period that you specified - was deliberately "cut" not to show the growth, and then you yourself confirm that the growth is "but in the figure error" !

Growth? Maybe a picture can help you see this "growth" better.


I don't see "growth" in this year long trend, more like a dead cat bounce. It has to go back to near $1000 billion for it to be called "growth".

This actually looks somewhat like the bitcoin price situation. It has massively crashed down from $70k and has only recently recovered to $30k. We can't say it has "grown" and things are fine until at least we see $50k+. Of course if you zoom in, it would look like "growth"!

So, back to the topic, is it still "China's global rejection of US bonds",

That's your statement not others. China never "rejected" US bonds, they dumped it because they wanted to reduce the amount of risk they were taking since US dollar started tanking (crash postponed by hugely increasing interest rates) and US-China are practically in an economic war. This is also not the only thing they did. They've been pulling out of each other's markets for the past couple of years. For example in the most recent news Apple revealed plans to pull a big part of its production out of China and move it to India.

[Synchronice]

That's your statement not others. China never "rejected" US bonds, they dumped it because they wanted to reduce the amount of risk they were taking since US dollar started tanking (crash postponed by hugely increasing interest rates) and US-China are practically in an economic war. This is also not the only thing they did. They've been pulling out of each other's markets for the past couple of years. For example in the most recent news Apple revealed plans to pull a big part of its production out of China and move it to India.

There is a thing that I don't understand. Some years ago I remember Apple or Barak Obama stated that Apple couldn't move factories from China to other country because Chinese laborers were highly qualified, efficient and fast. So, I don't really understand, if America is so dependent on China, why does China heavily invests in U.S. Treasury bonds and makes its own currency weak to keep low export fees? It could profit more if the USA is really dependent on China.
And there is another thing that I personally think is a huge bullshit. Why doesn't America produces goods in the USA? Labor is expensive? Then they shouldn't produce food, shouldn't provide postal service, shouldn't do tons of thing if we think that way. And labor isn't that cheap in China too. I think they are just exploiting their employees and they wont' be able to do the same in the USA. Or may be? Idk, I have heard that Amazon exploits its warehouse and delivery employees too.

[be.open]

That's your statement not others. China never "rejected" US bonds, they dumped it because they wanted to reduce the amount of risk they were taking since US dollar started tanking (crash postponed by hugely increasing interest rates) and US-China are practically in an economic war. This is also not the only thing they did. They've been pulling out of each other's markets for the past couple of years. For example in the most recent news Apple revealed plans to pull a big part of its production out of China and move it to India.

There is a thing that I don't understand. Some years ago I remember Apple or Barak Obama stated that Apple couldn't move factories from China to other country because Chinese laborers were highly qualified, efficient and fast. So, I don't really understand, if America is so dependent on China, why does China heavily invests in U.S. Treasury bonds and makes its own currency weak to keep low export fees? It could profit more if the USA is really dependent on China.
And there is another thing that I personally think is a huge bullshit. Why doesn't America produces goods in the USA? Labor is expensive? Then they shouldn't produce food, shouldn't provide postal service, shouldn't do tons of thing if we think that way. And labor isn't that cheap in China too. I think they are just exploiting their employees and they wont' be able to do the same in the USA. Or may be? Idk, I have heard that Amazon exploits its warehouse and delivery employees too.

1. China has an export-oriented economy, that is, China has a positive trade balance. In such conditions, it is beneficial for China to artificially maintain a low exchange rate of the yuan.
2. China is actually a monopolist in the production of a large number of rare earth metals, which are actively used in any high-tech products. This is a strong trump card of China and the answer to the question why it is difficult for any large company to transfer production from China to any other place.

[DrBeer]

That's your statement not others. China never "rejected" US bonds, they dumped it because they wanted to reduce the amount of risk they were taking since US dollar started tanking (crash postponed by hugely increasing interest rates) and US-China are practically in an economic war. This is also not the only thing they did. They've been pulling out of each other's markets for the past couple of years. For example in the most recent news Apple revealed plans to pull a big part of its production out of China and move it to India.

There is a thing that I don't understand. Some years ago I remember Apple or Barak Obama stated that Apple couldn't move factories from China to other country because Chinese laborers were highly qualified, efficient and fast. So, I don't really understand, if America is so dependent on China, why does China heavily invests in U.S. Treasury bonds and makes its own currency weak to keep low export fees? It could profit more if the USA is really dependent on China.
And there is another thing that I personally think is a huge bullshit. Why doesn't America produces goods in the USA? Labor is expensive? Then they shouldn't produce food, shouldn't provide postal service, shouldn't do tons of thing if we think that way. And labor isn't that cheap in China too. I think they are just exploiting their employees and they wont' be able to do the same in the USA. Or may be? Idk, I have heard that Amazon exploits its warehouse and delivery employees too.

1. China has an export-oriented economy, that is, China has a positive trade balance. In such conditions, it is beneficial for China to artificially maintain a low exchange rate of the yuan.
2. China is actually a monopolist in the production of a large number of rare earth metals, which are actively used in any high-tech products. This is a strong trump card of China and the answer to the question why it is difficult for any large company to transfer production from China to any other place.

The reality is a little different.
China is really the leading supplier of gallium and germanium today. This is a fact, I confirm. But I highlighted the word "SUPPLIER" for a reason. The fact is that these rare earths are also mined by other countries. The advantage of China, before the introduction of "licensing", was the extremely low price. But there are deposits of these metals in other countries, and in industrial quantities, with a slightly higher price.
The countries with the largest deposits and commercial production of these metals:
Gallium - Japan, South Korea, Ukraine
Germanium - Canada, Belgium, USA

Yes, they will create a temporary inconvenience, but it's like another "fighter against the world" with "turn off gas to Europe. Remember how it ended? There were "predictions from international analysts" blaring through all the outlets - "Europe will freeze, die out and crawl on its knees". In the end, the EU quietly switched to alternative and adequate suppliers of the "unique product", and ... in the end - the EU has no problems, Russia has lost this market forever.
The same will happen with Galium and Germany - China will simply lose supply contracts, it will take some time to sign new contracts, build logistics schemes, after which China will be told "goodbye our stupid supplier

[be.open]

That's your statement not others. China never "rejected" US bonds, they dumped it because they wanted to reduce the amount of risk they were taking since US dollar started tanking (crash postponed by hugely increasing interest rates) and US-China are practically in an economic war. This is also not the only thing they did. They've been pulling out of each other's markets for the past couple of years. For example in the most recent news Apple revealed plans to pull a big part of its production out of China and move it to India.

There is a thing that I don't understand. Some years ago I remember Apple or Barak Obama stated that Apple couldn't move factories from China to other country because Chinese laborers were highly qualified, efficient and fast. So, I don't really understand, if America is so dependent on China, why does China heavily invests in U.S. Treasury bonds and makes its own currency weak to keep low export fees? It could profit more if the USA is really dependent on China.
And there is another thing that I personally think is a huge bullshit. Why doesn't America produces goods in the USA? Labor is expensive? Then they shouldn't produce food, shouldn't provide postal service, shouldn't do tons of thing if we think that way. And labor isn't that cheap in China too. I think they are just exploiting their employees and they wont' be able to do the same in the USA. Or may be? Idk, I have heard that Amazon exploits its warehouse and delivery employees too.

1. China has an export-oriented economy, that is, China has a positive trade balance. In such conditions, it is beneficial for China to artificially maintain a low exchange rate of the yuan.
2. China is actually a monopolist in the production of a large number of rare earth metals, which are actively used in any high-tech products. This is a strong trump card of China and the answer to the question why it is difficult for any large company to transfer production from China to any other place.

The reality is a little different.
China is really the leading supplier of gallium and germanium today. This is a fact, I confirm. But I highlighted the word "SUPPLIER" for a reason. The fact is that these rare earths are also mined by other countries. The advantage of China, before the introduction of "licensing", was the extremely low price. But there are deposits of these metals in other countries, and in industrial quantities, with a slightly higher price.
The countries with the largest deposits and commercial production of these metals:
Gallium - Japan, South Korea, Ukraine
Germanium - Canada, Belgium, USA

Yes, they will create a temporary inconvenience, but it's like another "fighter against the world" with "turn off gas to Europe. Remember how it ended? There were "predictions from international analysts" blaring through all the outlets - "Europe will freeze, die out and crawl on its knees". In the end, the EU quietly switched to alternative and adequate suppliers of the "unique product", and ... in the end - the EU has no problems, Russia has lost this market forever.
The same will happen with Galium and Germany - China will simply lose supply contracts, it will take some time to sign new contracts, build logistics schemes, after which China will be told "goodbye our stupid supplier

China made a far-sighted bet on rare earths in the 1980s. Today, China is the world leader in the supply of 17 different rare earth metals with a market share of about 90%. To capture a significant share of this market requires huge investments and years, if not decades of directed efforts. The irony is that rare earth metals, which are actively used in high-tech goods, including for the green transition, are extremely unfriendly in their production, so replacing China on the world market is not only long and expensive, but also very dirty work. The production of rare earth metals is one of the reasons why in some parts of China it is possible to make bricks from the air, it is so dirty. Want to replace China? Good luck.

[DrBeer]

That's your statement not others. China never "rejected" US bonds, they dumped it because they wanted to reduce the amount of risk they were taking since US dollar started tanking (crash postponed by hugely increasing interest rates) and US-China are practically in an economic war. This is also not the only thing they did. They've been pulling out of each other's markets for the past couple of years. For example in the most recent news Apple revealed plans to pull a big part of its production out of China and move it to India.

There is a thing that I don't understand. Some years ago I remember Apple or Barak Obama stated that Apple couldn't move factories from China to other country because Chinese laborers were highly qualified, efficient and fast. So, I don't really understand, if America is so dependent on China, why does China heavily invests in U.S. Treasury bonds and makes its own currency weak to keep low export fees? It could profit more if the USA is really dependent on China.
And there is another thing that I personally think is a huge bullshit. Why doesn't America produces goods in the USA? Labor is expensive? Then they shouldn't produce food, shouldn't provide postal service, shouldn't do tons of thing if we think that way. And labor isn't that cheap in China too. I think they are just exploiting their employees and they wont' be able to do the same in the USA. Or may be? Idk, I have heard that Amazon exploits its warehouse and delivery employees too.

1. China has an export-oriented economy, that is, China has a positive trade balance. In such conditions, it is beneficial for China to artificially maintain a low exchange rate of the yuan.
2. China is actually a monopolist in the production of a large number of rare earth metals, which are actively used in any high-tech products. This is a strong trump card of China and the answer to the question why it is difficult for any large company to transfer production from China to any other place.

The reality is a little different.
China is really the leading supplier of gallium and germanium today. This is a fact, I confirm. But I highlighted the word "SUPPLIER" for a reason. The fact is that these rare earths are also mined by other countries. The advantage of China, before the introduction of "licensing", was the extremely low price. But there are deposits of these metals in other countries, and in industrial quantities, with a slightly higher price.
The countries with the largest deposits and commercial production of these metals:
Gallium - Japan, South Korea, Ukraine
Germanium - Canada, Belgium, USA

Yes, they will create a temporary inconvenience, but it's like another "fighter against the world" with "turn off gas to Europe. Remember how it ended? There were "predictions from international analysts" blaring through all the outlets - "Europe will freeze, die out and crawl on its knees". In the end, the EU quietly switched to alternative and adequate suppliers of the "unique product", and ... in the end - the EU has no problems, Russia has lost this market forever.
The same will happen with Galium and Germany - China will simply lose supply contracts, it will take some time to sign new contracts, build logistics schemes, after which China will be told "goodbye our stupid supplier

China made a far-sighted bet on rare earths in the 1980s. Today, China is the world leader in the supply of 17 different rare earth metals with a market share of about 90%. To capture a significant share of this market requires huge investments and years, if not decades of directed efforts. The irony is that rare earth metals, which are actively used in high-tech goods, including for the green transition, are extremely unfriendly in their production, so replacing China on the world market is not only long and expensive, but also very dirty work. The production of rare earth metals is one of the reasons why in some parts of China it is possible to make bricks from the air, it is so dirty. Want to replace China? Good luck.

Let's start with a theory, shall we?
Rare earth metals are a group of 17 elements including scandium, yttrium and the lanthanoids (lanthanum, cerium, praseodymium, neodymium, promethium, samarium, europium, gadolinium, terbium, dysprosium, holmium, erbium, thulium, ytterbium, lutetium).
Galium and Germanium are not included.
What I agree with, and it is foolish to deny - China is the largest supplier of rare earth metals today. But not EXCLUSIVE.
You can read in open sources, about deposits and mining of this group of metals in the world. Note that until 2000, the leader in mining and production of rare earth metals was the USA.
There are also large deposits in Australia, India, Brazil, India, as well as other countries.
The above-mentioned "problem" concerns only 2 metals - gallium and germanium. But as you know - their production in other countries has been reduced, but not stopped. It was just logical because China started to supply a lot of these metals to the market cheaply. Now other countries will start to increase production of these metals, because there is demand, and there are "restrictions" from China.
In a word - there will be a small adaptation of the market, as a result of which - new and old suppliers will simply appear on the market, with prices a bit higher than Chinese prices. Let me remind you once again - without being a really exclusive producer of some goods on the market, it is foolish to make such steps. China apparently has not studied Russia's experience of economic terrorization of consumers, and may repeat its history in another segment of the resource economy.


PS Regarding dirty air, I also agree. But there are nuances China has never cared about ecology and public health, so they did not use quality technologies to ensure environmental safety...

[Wildwest]

The Chinese yuan has become a big competition for the US dollar, especially a big country like Russia is a country that is very influential in economic problems, so in the future the dollar will share profits with the Chinese yuan because the use of the two currencies has been divided, and currently Russia has sanctions imposed by the US state so the Chinese yuan is their way out in dealing with these problems, China is indeed a country that has great ambitions in developing their economy.

[ringgo96]

with the existence of the digital yuan, Russia has felt leha from sanctions imposed by the US, so now they have used the Chinese yuan and this will be a new threat to the US dollar which used to dominate the world market, so this is one of the ways China develops their economy and we all know that China always competes with economic problems especially in technology, And for military matters, they can't be first yet.

[DrBeer]

The Chinese yuan has become a big competition for the US dollar, especially a big country like Russia is a country that is very influential in economic problems, so in the future the dollar will share profits with the Chinese yuan because the use of the two currencies has been divided, and currently Russia has sanctions imposed by the US state so the Chinese yuan is their way out in dealing with these problems, China is indeed a country that has great ambitions in developing their economy.

And you can give facts and arguments that the cheapening yuan, in a country with a real huge internal problem with the economy, and total dependence on the market in the West, and on Western technology, poses any danger to the dollar ?
You probably don't have all the information. I will inform you. After the global crisis (COVID, economic crisis 2019-2022), China has RECOVENED, and began to INCREASE investments in US government bonds, and fill the budget with dollars. By the way, the most interesting thing is about dollars. China is forcing all its "friends" to abandon the dollar (the currency of the international world market) and switch to yuan. But the most interesting thing is that China is implementing a scheme - now we are "friends" for you, we buy for dollars everything you need on the foreign market, and you pay us for it - with your assets, cheap raw materials, let Chinese business into your economy on the most favorable terms. Well, how to buy on the world market, if "foolish friends" remove the dollar from their gold reserves and exchange it for yuan ?
And then China sells the assets of "not smart friends" to the foreign market for.... yes yes, you guessed it - FOR DOLLARS, but much more expensive than they bought them for yuan from "fools". As they say - nothing personal - just business...on fools

[jasonjm]

This is what could be referred to in international politics as power tussle in terms of international levels of analysis. Haven such two conflicting countries like China and Russia coming together based on mutual economic interest against a common rival the USA is one that could be very frustrating for the US dollar with the unambiguous leverage and advantage the likes of Russia, China, Iran and Saudi Arabia have come together to give to the Chinese Yuan. With Russia in the forefront bent on the use of the Chinese Yuan instead of the US dollar in their country and in all of it's transactions and trades settlements with Latin America, Africa and Asia countries.
https://www.wsj.com/articles/russia-turns-to-chinas-yuan-in-effort-to-ditch-the-dollar-a8111457

What does this new development make for the US economy and the US dollar in the coming days and years to come.
Give your personal opinion on this development!

BRICS countries are planning to launch a currency to trade among themselves and with other countries, but at the moment India seems unwilling for this. They are doing this to challenge the monopoly of USD in the near future. Arab countries are also looking to trade in Yuan and it will have a big impact on petrodollars. And we might see a devaluation of USD as it is not backed by Gold.

[DrBeer]

This is what could be referred to in international politics as power tussle in terms of international levels of analysis. Haven such two conflicting countries like China and Russia coming together based on mutual economic interest against a common rival the USA is one that could be very frustrating for the US dollar with the unambiguous leverage and advantage the likes of Russia, China, Iran and Saudi Arabia have come together to give to the Chinese Yuan. With Russia in the forefront bent on the use of the Chinese Yuan instead of the US dollar in their country and in all of it's transactions and trades settlements with Latin America, Africa and Asia countries.
https://www.wsj.com/articles/russia-turns-to-chinas-yuan-in-effort-to-ditch-the-dollar-a8111457

What does this new development make for the US economy and the US dollar in the coming days and years to come.
Give your personal opinion on this development!

BRICS countries are planning to launch a currency to trade among themselves and with other countries, but at the moment India seems unwilling for this. They are doing this to challenge the monopoly of USD in the near future. Arab countries are also looking to trade in Yuan and it will have a big impact on petrodollars. And we might see a devaluation of USD as it is not backed by Gold.

India turned out to be the smartest country. India understands perfectly well that the "goal" of BRICS is to put some countries on the yuan, or rather to completely yuanize their economies to save China's economy. After that China will not let them out of its "friendly embrace" and these countries will never be able to be independent in the world market with an open economy and comfortable dollars for all.
As you can see, all the alleged settlements in the national currencies of the BRICS countries are somehow migrating towards settlements in the Chinese yuan. Trace the statistics of the volume of settlements in yuan between the BRICS countries of 5-3-1 years and now, and you will be forced to make a discovery for yourself - there is an overpowering of yuan, substitution of critical areas of exports and imports - for yuan. Someone invented a fairy tale about the "harm of the dollar", now someone will feel the "benefit" of the yuan...But it will be too late

[Minecache]

This is what could be referred to in international politics as power tussle in terms of international levels of analysis. Haven such two conflicting countries like China and Russia coming together based on mutual economic interest against a common rival the USA is one that could be very frustrating for the US dollar with the unambiguous leverage and advantage the likes of Russia, China, Iran and Saudi Arabia have come together to give to the Chinese Yuan. With Russia in the forefront bent on the use of the Chinese Yuan instead of the US dollar in their country and in all of it's transactions and trades settlements with Latin America, Africa and Asia countries.
https://www.wsj.com/articles/russia-turns-to-chinas-yuan-in-effort-to-ditch-the-dollar-a8111457

What does this new development make for the US economy and the US dollar in the coming days and years to come.
Give your personal opinion on this development!

BRICS countries are planning to launch a currency to trade among themselves and with other countries, but at the moment India seems unwilling for this. They are doing this to challenge the monopoly of USD in the near future. Arab countries are also looking to trade in Yuan and it will have a big impact on petrodollars. And we might see a devaluation of USD as it is not backed by Gold.

India turned out to be the smartest country. India understands perfectly well that the "goal" of BRICS is to put some countries on the yuan, or rather to completely yuanize their economies to save China's economy. After that China will not let them out of its "friendly embrace" and these countries will never be able to be independent in the world market with an open economy and comfortable dollars for all.
As you can see, all the alleged settlements in the national currencies of the BRICS countries are somehow migrating towards settlements in the Chinese yuan. Trace the statistics of the volume of settlements in yuan between the BRICS countries of 5-3-1 years and now, and you will be forced to make a discovery for yourself - there is an overpowering of yuan, substitution of critical areas of exports and imports - for yuan. Someone invented a fairy tale about the "harm of the dollar", now someone will feel the "benefit" of the yuan...But it will be too late

You seem to be a big fan of the US and USD, so there's nothing wrong with trying to protect them, but I think you need to be a bit more realistic. No one is making up a fairy tale about the “harm of USD” but it is happening, and we can feel the reality without being led by others.

According to recent news, India and the UAE have also agreed to eliminate the dollar in trade between the two countries and replace it with rupees and dirhams. And from the above article, we can also guess why India refuses the BRICS bloc when using the yuan, they also want the Indian rupee to replace the USD, not the Chinese yuan.
https://www.deccanherald.com/business/economy-business/india-uae-sign-pact-to-trade-in-local-currencies-amid-pm-modis-visit-1237265.html

[Lida93]

This is what could be referred to in international politics as power tussle in terms of international levels of analysis. Haven such two conflicting countries like China and Russia coming together based on mutual economic interest against a common rival the USA is one that could be very frustrating for the US dollar with the unambiguous leverage and advantage the likes of Russia, China, Iran and Saudi Arabia have come together to give to the Chinese Yuan. With Russia in the forefront bent on the use of the Chinese Yuan instead of the US dollar in their country and in all of it's transactions and trades settlements with Latin America, Africa and Asia countries.
https://www.wsj.com/articles/russia-turns-to-chinas-yuan-in-effort-to-ditch-the-dollar-a8111457

What does this new development make for the US economy and the US dollar in the coming days and years to come.
Give your personal opinion on this development!

BRICS countries are planning to launch a currency to trade among themselves and with other countries, but at the moment India seems unwilling for this. They are doing this to challenge the monopoly of USD in the near future. Arab countries are also looking to trade in Yuan and it will have a big impact on petrodollars. And we might see a devaluation of USD as it is not backed by Gold.

India turned out to be the smartest country. India understands perfectly well that the "goal" of BRICS is to put some countries on the yuan, or rather to completely yuanize their economies to save China's economy. After that China will not let them out of its "friendly embrace" and these countries will never be able to be independent in the world market with an open economy and comfortable dollars for all.
As you can see, all the alleged settlements in the national currencies of the BRICS countries are somehow migrating towards settlements in the Chinese yuan. Trace the statistics of the volume of settlements in yuan between the BRICS countries of 5-3-1 years and now, and you will be forced to make a discovery for yourself - there is an overpowering of yuan, substitution of critical areas of exports and imports - for yuan. Someone invented a fairy tale about the "harm of the dollar", now someone will feel the "benefit" of the yuan...But it will be too late

You seem to be a big fan of the US and USD, so there's nothing wrong with trying to protect them, but I think you need to be a bit more realistic. No one is making up a fairy tale about the “harm of USD” but it is happening, and we can feel the reality without being led by others.

According to recent news, India and the UAE have also agreed to eliminate the dollar in trade between the two countries and replace it with rupees and dirhams. And from the above article, we can also guess why India refuses the BRICS bloc when using the yuan, they also want the Indian rupee to replace the USD, not the Chinese yuan.
https://www.deccanherald.com/business/economy-business/india-uae-sign-pact-to-trade-in-local-currencies-amid-pm-modis-visit-1237265.html

I was initially wondering what could have led to the BRICS bloc refusal by the Indian government not until I peruse through the article . The local currency settlement system Is a good development in the right direction for both India and the UAE in a bid to mutually move their economies. Going through the article it's espoused how the bilateral agreement would greatly lead to a reduction in the dependence of the US dollar which is obvious such economic dependence on the dollar is a control to the pace of development to the third world countries in addition to the continuous devaluation of their local currency's to the dollar that is rapidly becoming a monopoly in itself.

[Minecache]

✂️

I was initially wondering what could have led to the BRICS bloc refusal by the Indian government not until I peruse through the article . The local currency settlement system Is a good development in the right direction for both India and the UAE in a bid to mutually move their economies. Going through the article it's espoused how the bilateral agreement would greatly lead to a reduction in the dependence of the US dollar which is obvious such economic dependence on the dollar is a control to the pace of development to the third world countries in addition to the continuous devaluation of their local currency's to the dollar that is rapidly becoming a monopoly in itself.

Although many people still do not accept the fact that the USD is fighting to lose its position, that is what is happening in the international trade market. Not only the BRICS countries are looking to reduce their dependence on the USD, but many other countries have also expressed support for this.

To be fair, I also believe we won't see a new currency replace USD in the next few years, but USD will be dethroned and replaced by another, that's what will happen in the future. In the history of world currency, there have been 4 other currencies dethroned over time and USD is no exception because that is the rule of the world.

[DrBeer]

.....
You seem to be a big fan of the US and USD, so there's nothing wrong with trying to protect them, but I think you need to be a bit more realistic. No one is making up a fairy tale about the “harm of USD” but it is happening, and we can feel the reality without being led by others.

According to recent news, India and the UAE have also agreed to eliminate the dollar in trade between the two countries and replace it with rupees and dirhams. And from the above article, we can also guess why India refuses the BRICS bloc when using the yuan, they also want the Indian rupee to replace the USD, not the Chinese yuan.
https://www.deccanherald.com/business/economy-business/india-uae-sign-pact-to-trade-in-local-currencies-amid-pm-modis-visit-1237265.html

Your assumption that I am a fan of the US and the Dollar is a fallacy
I also have a lot of questions about the US. And I consider the dollar to be the only acceptable currency for international settlements today, purely because of its pragmatic and real advantages.

Regarding the arrangements between India and UAE.  Arrangements can be, and have the right to be, between two countries - it is their right. And I assume it will be a mutually beneficial and partnership. Not like settlements with Russia
I am not sure that ALL groups of goods will be sold to each other for rupees or dirhams. And here again the dollar comes up. Let me explain - in the international market dollar is like money inside the country. Without money in the country begins the most complicated process of barter exchanges or search for a substitute currency. Similarly, in the international market - many goods are produced for the world economy, and the universal measure is the DOLLAR. It is recognized by the whole world, it is secured and stable enough, even in today's time. Having sold any commodity for it, you are sure that you will buy any other commodity in the market without any problems. In case of local sales for local currencies, there is a problem - countries need the currency of international settlements for foreign economic activity. And part of the goods both sides will still sell for the dollar and possibly the euro (the second is a fairly liquid currency). If you remember the example of "rupee-ruble", I did not just bring it up. The situation there has actually reached a deadlock - Russia has huge piles of rupees, and there are no 100% settlements, while the liquidity of the rupee is low. Because Russia cannot buy in India what it critically needs. And India does not want to sell almost anything for rubles, because it does not need a worthless piece of paper from a country with a dubious future. I agree, India-UAE is a different level of relations and economies.

By the way, despite some nuances of recent years, I have great respect for India! History, culture, desire to be leaders, development of space, pharmaceuticals and many other things deserves respect!

[coupable]

Although many people still do not accept the fact that the USD is fighting to lose its position, that is what is happening in the international trade market. Not only the BRICS countries are looking to reduce their dependence on the USD, but many other countries have also expressed support for this.

In confirmation of your opinion, I read since two days that the United Arab Emirates agreed with India to complete trade exchange deals between them in rupees, which can be considered an additional step in the same direction, although this is outside the BRICS framework.
And although I am convinced that the global economy in its current situation is unable to completely abandon the use of the dollar, I note that the dollar (the United States) is going through its most difficult period.
The most important question today is what is the really best option for the global economy (I mean in particular global trade exchanges)? I mean, is it good to keep the dollar as a major exchange currency, or will diversifying currencies have better results? Do not forget that the dollar is the supporter of America's position as a global power.

[be.open]

Although many people still do not accept the fact that the USD is fighting to lose its position, that is what is happening in the international trade market. Not only the BRICS countries are looking to reduce their dependence on the USD, but many other countries have also expressed support for this.

In confirmation of your opinion, I read since two days that the United Arab Emirates agreed with India to complete trade exchange deals between them in rupees, which can be considered an additional step in the same direction, although this is outside the BRICS framework.
And although I am convinced that the global economy in its current situation is unable to completely abandon the use of the dollar, I note that the dollar (the United States) is going through its most difficult period.
The most important question today is what is the really best option for the global economy (I mean in particular global trade exchanges)? I mean, is it good to keep the dollar as a major exchange currency, or will diversifying currencies have better results? Do not forget that the dollar is the supporter of America's position as a global power.

The world economy does not have to completely abandon the dollar. The US is a big country, it produces a lot of goods and services, and buys even more goods and services from abroad - and this part of the world economy, I think, will continue to use the US dollar as a unit of account in the future. But if the UAE is buying something from India, why would they use the US dollar? The practice of bilateral currency swaps in national currencies will continue to develop, increasing the share of national currencies in world trade and reducing the share of the US dollar. The United States will have to get used to living within its means.

[Mario Yamasaki]

Many countries are trying to leave the USD due to many factors, Russia and China are 2 large countries that are currently trying to escape the influence of the USD, of course as long as the country's financial condition is still strong then there is no problem if you replace the USD with something else.

[Minecache]

Although many people still do not accept the fact that the USD is fighting to lose its position, that is what is happening in the international trade market. Not only the BRICS countries are looking to reduce their dependence on the USD, but many other countries have also expressed support for this.

In confirmation of your opinion, I read since two days that the United Arab Emirates agreed with India to complete trade exchange deals between them in rupees, which can be considered an additional step in the same direction, although this is outside the BRICS framework.
And although I am convinced that the global economy in its current situation is unable to completely abandon the use of the dollar, I note that the dollar (the United States) is going through its most difficult period.
The most important question today is what is the really best option for the global economy (I mean in particular global trade exchanges)? I mean, is it good to keep the dollar as a major exchange currency, or will diversifying currencies have better results? Do not forget that the dollar is the supporter of America's position as a global power.

The complete elimination of the dollar in international trade is impossible because if they loses its position as the number one power, the US will still be a country with a large economy and will still have certain influences. But the fact that the whole world is governed and dependent on a single country or currency is something that should not be maintained. I like diversification in any field and that makes things fairer. In life, would you rather have more choices or exclusivity and have to use them even if you don't like them?

[DrBeer]

Many countries are trying to leave the USD due to many factors, Russia and China are 2 large countries that are currently trying to escape the influence of the USD, of course as long as the country's financial condition is still strong then there is no problem if you replace the USD with something else.

What you are saying is either a profound misconception or an attempt at wishful thinking!
China. China is going through a daunting economic problem from which there is no easy and comfortable way out. There is a tricky option - to find fools to whom you can "pour" the problems of the Chinese economy, a kind of export of problems and inflation. That is why China is pushing hard for the Yuan as the main currency of BRICS. At the same time, it actively proposes to these unfortunate people to give up the dollar in their gold reserves. At the same time, China itself continues to invest in the dollar and US government bonds. So China is not only not against the dollar, it is in favor of it, as it is highly dependent on the US.
Russia. Russia is a pariah country, an international terrorist, against which sanctions have begun to take effect. Which led to a sharp collapse of currency revenues to the budget. And Russia without currency is Zimbabwe with snow. Russia needs currency critically! Since even "friends" like India and China do not want to sell Russia anything more or less significant for their rubles, which nobody needs. Only for Dollars or Euros. Therefore... now Russia has... a lot of Chinese and Indian banknotes, which they don't know where to put )

[Woodie]

This will be interesting to see!

But what I don't understand in this whole BRICS is why choose Yuan as the face currency when very few countries use it ?? Are they saying the base currency where the US dollar is will be replaced by the Yuan,  but in the long run doesn't this make their local currencies weak especially  that they are pumping a currency that is far from home...

This Pact is one complicated one, if they want to take on the USA, let them turn on the heat on technology starting with full support of cryptocurrencies,  then maybe the Yuan stands a good chance of getting global recognition.

[stompix]

But if the UAE is buying something from India, why would they use the US dollar? The practice of bilateral currency swaps in national currencies will continue to develop, increasing the share of national currencies in world trade and reducing the share of the US dollar. The United States will have to get used to living within its means.

You do know the UAE dirham is pegged to the value of the USD, right?
So basically you're just dealing with USD value, it's like saying using tether will lead to the collapse of the USD! 

Although many people still do not accept the fact that the USD is fighting to lose its position, that is what is happening in the international trade market.

And yet, despite all this, every single one of those commenting here about the death of the dollar is in a signature campaign that pays in $ equivalent, not in yuans not in rubles not in rupees! Why is that?

[pooya87]

There is a thing that I don't understand. Some years ago I remember Apple or Barak Obama stated that Apple couldn't move factories from China to other country because Chinese laborers were highly qualified, efficient and fast. So, I don't really understand, if America is so dependent on China, why does China heavily invests in U.S. Treasury bonds and makes its own currency weak to keep low export fees? It could profit more if the USA is really dependent on China.

They "buy US debt" and keep their exchange rate low because they want to force US to be dependent on China. If we look at the history, like the past 40-50 years we have a very weak country with no economy to speak of and no production while the population is enormous (about 850 million) and 85% of them are living in absolute poverty. That is 720+ million people who had literary nothing.

40-50 years ago there were two powers the US and USSR and they were fighting. China took advantage and created that dependence, slowly but surely. That way they grew. US also had no choice but to give China all these benefits, from technologies to investment. Otherwise the communists China would have played a 100% USSR favored game.
But at some point US regime realized while they were busy trying to destroy their competitor USSR, China had been growing too much and US was already heavily depending on China.

Now here is the thing, this used to be China's strategy to grow. Today almost all countries have lots of relations with China so China no longer "needs" US like before. At the same time when US publicly announces that China's economic growth is a threat to US national security (ignore how absurd that is) they are in fact declaring war on China. So China also retaliates by screwing US, for example they dump $175 billion of the US bonds they were bag-holding, they join the dedollarisation wagon, they respond to the tariff war with tariff of their own, they disrupt exporting goods to US to disrupt their market, they manipulate the energy market to keep the prices up and damage US economy, they reduce or stop export of raw materials, and a lot more...

And there is another thing that I personally think is a huge bullshit. Why doesn't America produces goods in the USA? Labor is expensive? Then they shouldn't produce food, shouldn't provide postal service, shouldn't do tons of thing if we think that way. And labor isn't that cheap in China too. I think they are just exploiting their employees and they wont' be able to do the same in the USA. Or may be? Idk, I have heard that Amazon exploits its warehouse and delivery employees too.

It is super expensive to produce almost everything inside US because it is a capitalist democracy.
Certain things like food is a different matter, because US is massive and has lots of fertile land for farming so it is still possible to do domestically not to mention that food is considered a strategic good so there is no way in hell they'd let US be fully depended on another country for that.

Other things like "postal service" that you mentioned are "services" not products and sometimes they can not be outsourced, they have to remain domestic.
With products like a phone, there is always competition. If you manufacture a phone inside US and have to sell it for $5000 while China manufactures the same exact thing but for $500 you simply can not compete and nobody is going to buy the $5000 domestic phone! Not to mention that they won't even be able to afford to pay that much even if there were no alternative!!!

[be.open]

But if the UAE is buying something from India, why would they use the US dollar? The practice of bilateral currency swaps in national currencies will continue to develop, increasing the share of national currencies in world trade and reducing the share of the US dollar. The United States will have to get used to living within its means.

You do know the UAE dirham is pegged to the value of the USD, right?
So basically you're just dealing with USD value, it's like saying using tether will lead to the collapse of the USD!  

Am I talking about the collapse of the US dollar? It's funny that you quote my message with the explicit content "US will have to get used to living within its means", and this thought makes you think of the collapse. Try to understand that to stop plundering the rest of the world is not a disaster, but a normal state of affairs.

Although many people still do not accept the fact that the USD is fighting to lose its position, that is what is happening in the international trade market.

And yet, despite all this, every single one of those commenting here about the death of the dollar is in a signature campaign that pays in $ equivalent, not in yuans not in rubles not in rupees! Why is that?

And please refrain from further false generalizations. You're a "four dollars poster" and I'm not. We are different.

[stompix]

Try to understand that to stop plundering the rest of the world is not a disaster, but a normal state of affairs.

Wow, is Russia going out of Ukraine and Georgia and Moldova and returning Konisgberg?
Great news, thanks for letting me know that the invading orcs are going back home!

With products like a phone, there is always competition. If you manufacture a phone inside US and have to sell it for $5000 while China manufactures the same exact thing but for $500 you simply can not compete and nobody is going to buy the $5000 domestic phone! Not to mention that they won't even be able to afford to pay that much even if there were no alternative!!!

That's why Huawei can't make a 5g phone without US chips?  

So China also retaliates by screwing US, for example they dump $175 billion of the US bonds they were bag-holding, they join the dedollarisation wagon, they respond to the tariff war with tariff of their own, they disrupt exporting goods to US to disrupt their market, they manipulate the energy market to keep the prices up and damage US economy, they reduce or stop export of raw materials, and a lot more...

And when you wake up you see that you just had a wet dream again like you had for 3 decades, it might be the case that you need to let go of the anti-US propaganda and deal with facts, just as you like to deal with good old and valuable us dollars instead of shitty rials and yuans.

[coupable]

Although many people still do not accept the fact that the USD is fighting to lose its position, that is what is happening in the international trade market. Not only the BRICS countries are looking to reduce their dependence on the USD, but many other countries have also expressed support for this.

In confirmation of your opinion, I read since two days that the United Arab Emirates agreed with India to complete trade exchange deals between them in rupees, which can be considered an additional step in the same direction, although this is outside the BRICS framework.
And although I am convinced that the global economy in its current situation is unable to completely abandon the use of the dollar, I note that the dollar (the United States) is going through its most difficult period.
The most important question today is what is the really best option for the global economy (I mean in particular global trade exchanges)? I mean, is it good to keep the dollar as a major exchange currency, or will diversifying currencies have better results? Do not forget that the dollar is the supporter of America's position as a global power.

The world economy does not have to completely abandon the dollar. The US is a big country, it produces a lot of goods and services, and buys even more goods and services from abroad - and this part of the world economy, I think, will continue to use the US dollar as a unit of account in the future. But if the UAE is buying something from India, why would they use the US dollar? The practice of bilateral currency swaps in national currencies will continue to develop, increasing the share of national currencies in world trade and reducing the share of the US dollar. The United States will have to get used to living within its means.

Diversification of currencies in commercial exchanges means a decrease in the use of the dollar, i.e. a decline in its popularity in the global market, and this in itself will affect the position of the United States in determining its influence around the world.
With the testimony of all experts in economic history, America would not have become what it is today as a superpower until after the world signed the adoption of the dollar as the main global currency according to the Brettenwood Treaty. And since that date, it has been working to strengthen the position of the dollar and does not allow the expansion of the influence of any other currency to compete with it.
Any country has the right to adopt the currency it wants in its exchanges, and this is supposed to be only based on the approval of the two parties in the exchange. But its interests with the United States are what actually prevents it from doing so. As evidence of this, it is unlikely that a country from NATO would take such a step.

[Casdinyard]

This is what could be referred to in international politics as power tussle in terms of international levels of analysis. Haven such two conflicting countries like China and Russia coming together based on mutual economic interest against a common rival the USA is one that could be very frustrating for the US dollar with the unambiguous leverage and advantage the likes of Russia, China, Iran and Saudi Arabia have come together to give to the Chinese Yuan. With Russia in the forefront bent on the use of the Chinese Yuan instead of the US dollar in their country and in all of it's transactions and trades settlements with Latin America, Africa and Asia countries.
https://www.wsj.com/articles/russia-turns-to-chinas-yuan-in-effort-to-ditch-the-dollar-a8111457

What does this new development make for the US economy and the US dollar in the coming days and years to come.
Give your personal opinion on this development!

China and Russia conflicting? They've been corroborating for years now lol. The switch was more than expected although in all honesty I didn't expect Russia to yield this early against their power struggle. More than the effects that it would bring to the US economy, cause as far as I know Russia's not even one of the biggest contributors out there to begin with, is what urged Russia to do this maneuver in the first place. Are they growing weaker by the moment and are clinging on to whatever they can to continue funding their pointless war? Are they pushing towards the dedollarization, which if so is stupid cause these two countries weren't in good terms with USA anyway? We can only guess and assume.

[Sithara007]

The only asset that can replace the US Dollar is gold. But even in case of gold, it is doubtful, because an improvement in technology for extraction of gold can destroy it's value. Less than 200,000 tonnes of gold have been mined from the earth's crust till date. But at the same time, the ocean water contains 20 million tonnes of gold. It is not economically viable to extract gold from ocean water and therefore gold remains as a valuable asset for now. Chinese Yuan is not a suitable replacement for the USD, because it is one of the most manipulated currencies in the world.

[DrBeer]

The only asset that can replace the US Dollar is gold. But even in case of gold, it is doubtful, because an improvement in technology for extraction of gold can destroy it's value. Less than 200,000 tonnes of gold have been mined from the earth's crust till date. But at the same time, the ocean water contains 20 million tonnes of gold. It is not economically viable to extract gold from ocean water and therefore gold remains as a valuable asset for now. Chinese Yuan is not a suitable replacement for the USD, because it is one of the most manipulated currencies in the world.

He can't!
It's a misconception... The problem is that :
1. Objectively, there is a lot of gold being mined.
2. It is impossible to objectively find out the real gold reserves in the gold reserves of a country ! Some deliberately deceive, some secrecy, some simply tell tales about their reserves
3. If you have gold as such, an independent asset, it is even more impossible. Here are more details. There are countries where there are LARGE reserves of gold. Most countries do not have such reserves. Therefore, most countries will be against it. Because it will be "unfair" - some will have gold under their feet, and the majority will be forced to buy it by selling their assets. That is, there is some monopolization of gold production, which puts other countries in unequal conditions.

[Sithara007]

He can't!
It's a misconception... The problem is that :
1. Objectively, there is a lot of gold being mined.
2. It is impossible to objectively find out the real gold reserves in the gold reserves of a country ! Some deliberately deceive, some secrecy, some simply tell tales about their reserves
3. If you have gold as such, an independent asset, it is even more impossible. Here are more details. There are countries where there are LARGE reserves of gold. Most countries do not have such reserves. Therefore, most countries will be against it. Because it will be "unfair" - some will have gold under their feet, and the majority will be forced to buy it by selling their assets. That is, there is some monopolization of gold production, which puts other countries in unequal conditions.

Not sure about the third point. At present, none of the countries are having a monopoly on gold mining. Even the largest producer (China) accounts for less than 10% of the annual mine output. The situation now is much different from what we had two decades ago, when South Africa used to dominate gold production. China, Russia, Canada and United States are among the top-5 producers of gold and I don't think that there will be a lot of opposition from these countries in case gold is proposed as an asset that can be used to make payments for international trade.

[DrBeer]

He can't!
It's a misconception... The problem is that :
1. Objectively, there is a lot of gold being mined.
2. It is impossible to objectively find out the real gold reserves in the gold reserves of a country ! Some deliberately deceive, some secrecy, some simply tell tales about their reserves
3. If you have gold as such, an independent asset, it is even more impossible. Here are more details. There are countries where there are LARGE reserves of gold. Most countries do not have such reserves. Therefore, most countries will be against it. Because it will be "unfair" - some will have gold under their feet, and the majority will be forced to buy it by selling their assets. That is, there is some monopolization of gold production, which puts other countries in unequal conditions.

Not sure about the third point. At present, none of the countries are having a monopoly on gold mining. Even the largest producer (China) accounts for less than 10% of the annual mine output. The situation now is much different from what we had two decades ago, when South Africa used to dominate gold production. China, Russia, Canada and United States are among the top-5 producers of gold and I don't think that there will be a lot of opposition from these countries in case gold is proposed as an asset that can be used to make payments for international trade.

I'm not talking about one country. But deposits and production of gold are similar to deposits of oil, for example - there are, conditionally, several countries. And as you can see - this leads, especially in difficult situations, to the fact that some using "semi-monopoly position", begin to manipulate this resource.
Gold has the same risk if it is adopted as a "world" standard. Yes, for "local use", in "troubled" times - gold is not bad as a safe harbor, plus brings income. But ... imagine, or more correctly - model the situations that now NEFT has become the international currency of settlements. And you will realize what chaos the modern world would plunge into....

[Argoo]

This is what could be referred to in international politics as power tussle in terms of international levels of analysis. Haven such two conflicting countries like China and Russia coming together based on mutual economic interest against a common rival the USA is one that could be very frustrating for the US dollar with the unambiguous leverage and advantage the likes of Russia, China, Iran and Saudi Arabia have come together to give to the Chinese Yuan. With Russia in the forefront bent on the use of the Chinese Yuan instead of the US dollar in their country and in all of it's transactions and trades settlements with Latin America, Africa and Asia countries.
https://www.wsj.com/articles/russia-turns-to-chinas-yuan-in-effort-to-ditch-the-dollar-a8111457

What does this new development make for the US economy and the US dollar in the coming days and years to come.
Give your personal opinion on this development!

Every country strives to strengthen its currency and have more other countries use its national currency, as this strengthens the economy of its country. Russia did try to increase its financial reserves in Chinese yuan, but lost because the yuan became cheaper after that. Russia is doing this primarily not because of its dislike for the dollar, but because of the sanctions imposed after the military invasion of Ukraine and its restrictions on the use of dollars. If Russia switches to using the national currency of another country in international trade, it loses in any case and at the same time strengthens the currency of the country it uses in trade. This indicates not the strength, but the weakness of Russia.

[DrBeer]

Having worked with the information, I can say - the title of the topic should be changed to "Outcast countries, in order to have at least some possibility to trade - sell their goods for yuan".
The main question is where these poor slaves of the yuan can use it ? Let's fantasize, shall we? Hm..... There is only 1 option - to buy Chinese consumer goods ! 

Although I will clarify it to be fair. Some normal countries do "test" deals, for example UAE, in May 2023, sold oil for yuan. But given the share of yuan in the UAE's turnover, its part in the budget is commensurate with the margin of error.

I'll clarify again though Some very smart countries have decided not to trade for yuan, such as India. India understands perfectly well what China is getting at. Given India's desire to take a leading position in the region, India will not save China by "importing China's economic problems" into its economy.

[coupable]

Having worked with the information, I can say - the title of the topic should be changed to "Outcast countries, in order to have at least some possibility to trade - sell their goods for yuan".
The main question is where these poor slaves of the yuan can use it ? Let's fantasize, shall we? Hm..... There is only 1 option - to buy Chinese consumer goods ! 

It is an almost impossible hypothesis to achieve balance if Russia decides to deal in the yuan only, because in this case it will either have to deal with countries that use the yuan, which is very little, which means dealing directly with China in everything related to its import needs. China, of course, cannot provide Russia with all its needs of foreign imports, and therefore the Chinese yuan will accumulate in Russia's account and it will not find anything to do with it. This is in addition to exposure to the risks of exchange rate fluctuations.
Russia is not the only one concerned with this, but rather any country that wants to completely get rid of the dollar because this is almost impossible in the current global circumstance.

[DrBeer]

Having worked with the information, I can say - the title of the topic should be changed to "Outcast countries, in order to have at least some possibility to trade - sell their goods for yuan".
The main question is where these poor slaves of the yuan can use it ? Let's fantasize, shall we? Hm..... There is only 1 option - to buy Chinese consumer goods ! 

It is an almost impossible hypothesis to achieve balance if Russia decides to deal in the yuan only, because in this case it will either have to deal with countries that use the yuan, which is very little, which means dealing directly with China in everything related to its import needs. China, of course, cannot provide Russia with all its needs of foreign imports, and therefore the Chinese yuan will accumulate in Russia's account and it will not find anything to do with it. This is in addition to exposure to the risks of exchange rate fluctuations.
Russia is not the only one concerned with this, but rather any country that wants to completely get rid of the dollar because this is almost impossible in the current global circumstance.

Here's a slightly different picture.
1. China cannot provide Russia with everything it needs, only because China needs CURRENCY. But they will not sell everything for yuan, which China has more than it needs. As long as Russia has something that can be measured in currency, China will use Russia as a raw material appendage, giving it “glass beads” in return. Consumer goods - yes, they will sell them for yuan, no problem there. And he will buy gas and oil for yuan - with pleasure But Russia's requests go far beyond what China can sell them. China now has a lot of problems, and China categorically does not need to get dirty with “friendship” with Russia and receive sanctions.
2. Russia is not concerned about the “move away from the dollar.” Russia is sorely short of dollars! its economy without an influx of foreign currency is dying. Russia, despite its propaganda, is a backward country and is globally dependent on Western technologies, goods, and equipment. And China cannot deliver this...