The idea of China seriously challenging the dollar’s dominance has been dismissed by many economists as far-fetched. The dollar is still in a different league globally because such a large share of public and private debt worldwide is held in dollars.
But the number of transactions involving the renminbi is rising at breakneck speed. In the last three years,
global use of the Chinese currency in trade finance has tripled. In September, it overtook the euro as the second-most used
currency in global trade.
It takes the dollar out of the loop,” says Christopher Vassallo, a researcher at the Asia Society Policy Institute’s Center for China Analysis. “If China wants to pay Saudi Arabia for a certain amount of oil imports, they can use their currency.”
China is the number-one destination for Saudi exports by value and the Kingdom is China’s second-largest oil supplier, after Russia.
In addition to oil, the two nations have deepened their ties in the tech and science sectors, and Saudi Arabia is turning towards China for security.”
https://www.yahoo.com/finance/news/xi-jinping-challenging-dollar-dominance-120000057.html
🔥..no worries…far right extremists republikans are already spreading rumors about China shooting other countries ships 🚢…..you know..China’s evil…..plus far right extremists libertarians techno bros are at the ready for the beggars parade in….China…😒
Or…well”…there can always be another ‘Chinese ‘ viruses….🤭
by BikkaZz
4 comments
Some countries are about to find out what backs up the USD (What it is pegged to)
Russia is drowning in renminbi and rupee’s. At least China produces some stuff that Russia wants but God knows what good rupee’s are to them.
The renminbi is not a fully convertible currency and is no way a threat to US dollar hegemony.
What started as salient rational logic derailed into a bit of a rant.
Sure, Saudi’s can accept RMB, so can other countries – but then it runs the risk of rapid, drastic inflation; which is the last thing China want.
Forget the USA and the dollar for a minute, the RMB is a double edged sword; it will be interesting to see what happens, but the more nations that use RMB the less China will be able to isolate their economic controls.
Too bad China won’t accept its own RMB as payment.
They’re happy to pay you in RMB!
They just won’t take RMB if you want to pay them.
They want USD or Yen.
Go figure.