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Topic: China's currency is worth double that of USD. WTF? How is this possible? - page 2. (Read 1648 times)

full member
Activity: 146
Merit: 100
But still, USD is more common a reserve currency. So how can it only be half the value?

That I don't know, I had no idea Chinese economy was that big, apparently the biggest one.

Maybe there's something wrong with those numbers...

The Chinese economy is not that big compared to US though, barely over half the size.
legendary
Activity: 2786
Merit: 1031
But still, USD is more common a reserve currency. So how can it only be half the value?

That I don't know, I had no idea Chinese economy was that big, apparently the biggest one.

Maybe there's something wrong with those numbers...
full member
Activity: 146
Merit: 100
But still, USD is more common a reserve currency. So how can it only be half the value?
legendary
Activity: 2786
Merit: 1031
Actually there are several Reserve Currencies, being the US dollar, Euro and Japanese Yen the major ones, China is now pushing for Chinese yuan to also become a Reserve Currency.

https://en.wikipedia.org/wiki/Reserve_currency#Major_reserve_currencies

http://www.wsj.com/articles/momentum-builds-to-label-chinese-yuan-a-reserve-currency-1427926918
full member
Activity: 146
Merit: 100
Per https://i.imgur.com/rhArHSS.jpg

I do not understand how China's currency can be almost twice the value of USD? USD GDP is almost double that of China, PLUS USD is the global reserve currency, so there's even more of it out there than there otherwise would be.

Please, someone explain this to me!?

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