Topic: Russia and others, move to use Yuan instead of dollar. - page 6. (Read 1613 times)

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.

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.

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

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?

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.

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

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 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.

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

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.

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.

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.

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 ).

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.

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.

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.

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

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).

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?

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.


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

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?