No, you didn't. You said that "if the Yuan is not the next reserve currency and widely adopted, the US is winning", while his point is the opposite "If US dollar usage being reduced while Yuan usage remain unchanged, China is winning". Yuan does not need to replace the USD for the US to lose, the latter just needs to no longer be dominant and this will start the chain reaction because the current US economic system relies on the USD being as prominent as it is.
Renminbi (RMB)/Yuan Appreciation & Internationalization
- Thread starter supercat
- Start date
I see now, thanks.
That was what he was saying, that is what he meant, Mr. lube.
He was mocking the fact that certain people still believe in white privilege and trot out the propaganda lines that the US dollar is the world's reserve currency simply because there is no alternative, as Baroness Thatcher used to remark with much glee.
When the baroness died, people danced in the streets in jolly old England.
That won't even be necessary. Brazil, Saudi Arabia, Australia, France, UAE, and Russia have jumped onboard the RMB train. It's only a matter of time before South Africa does. India has opted for UAE's currency because no one wants rupees and India would feel humiliated at using RMB.
No one knows other than Chinese officials on Yuan usage because only they have access to CIPS data
As I recall, the song from Wizard of Oz "Ding Dong the Witch is Dead" went to No. 1 in the charts at that time.That was what he was saying, that is what he meant, Mr. lube.
He was mocking the fact that certain people still believe in white privilege and trot out the propaganda lines that the US dollar is the world's reserve currency simply because there is no alternative, as Baroness Thatcher used to remark with much glee.
When the baroness died, people danced in the streets in jolly old England.
TBF she divided opinion strongly.
Chinese Yuan has surpassed the Euro in global trade invoicing!
in fact, that it now exceeds euro-usage for trade invoicing, which is “striking, given China’s low degree of capital account openness”
After all, it notes, a $200bn offshore RMB market has already emerged — and the currency is being “use[d] in invoicing and settling China’s foreign trade and payments” and “a global network of clearing and payments”. The net result, the CEPR predicts, is that a “multipolar” currency world could emerge in the coming years, of the sort that O’Neill is now calling for
in fact, that it now exceeds euro-usage for trade invoicing, which is “striking, given China’s low degree of capital account openness”
After all, it notes, a $200bn offshore RMB market has already emerged — and the currency is being “use[d] in invoicing and settling China’s foreign trade and payments” and “a global network of clearing and payments”. The net result, the CEPR predicts, is that a “multipolar” currency world could emerge in the coming years, of the sort that O’Neill is now calling for
that's really good. I didn't realize there were that much offshore Yuan (aka CNH) already. that dispells the notion that RMB is not floating. That $200B very much is floating, that's why USD/CNY and USD/CNH rates keep changing every day by so much. I see that at end of trading day today, USD/CNH spot is at 6.875. That imo is still China trying to keep its currency low. At some point, it needs to do more to strengthen CNH.
This would be interesting. I think it's been discussed for a while, but I don't see how this can work. It would be very to get these nations to agree on the basket. I think they should just negotiate something to make it easier to trade in native currencies.
as we already covered, China/Brazil moving forward on their plans of this. I think China/South Africa should be next and maybe China/Saudi/UAE.
So while ASEAN countries are generally supportive of trading in each other's currencies, RMB is not mentioned in there. I think having more offshore CNH circulation in these countries would also encourage trading/settlement in CNH. In these countries, RMB is the second most liquid foreign currency after USD. China should do more things to encourage CNH usage.
Pretty good analysis by Lyn Alden, as she points out, it´s necessary bad for US to lose dollar as reserve currency? Well, that rest on what kind of US you are talking about. If you are "US empire", well you are losing your industrial military complex and DC political influence, but you can restore your manufacture base and stop exporting inflation abroad ("when asking who that helps or hurts specifically, realize that “export inflation” in significant part means “keep domestic working class wages low”), this is positive for "US country"