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

[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.