Topic: Russia and others, move to use Yuan instead of dollar. - page 9. (Read 1613 times)

It is interesting how the threat of a weapon many times is stronger than the weapon itself, the US when a country does something they do not like they use those sanctions to punish the country and force them to change their policies, however this has created the desire on many of those countries to create ways to avoid or reduce the impact of that weapon, so not only this will affect the power of those sanctions but at the same time it will weaken the dollar, a thing that is kind of dangerous at the moment.

To be honest, I don't think the Chinese currency has much future here in Latin America, historically we are under the sphere of influence of the American Dollar and the economic policies taken in Washington. I don't see why Brazil, Colombia, Peru or Chile would adopt the Yuan.

The only realistic candidates for it would be Argentina and Venezuela, since both have had suffered inflation problems to this day an the Yuan is relatively strong. In the case of Venezuela, people prefer to hold Dollars (for the influential aspects I already mentioned) and the government is never serious when they talk about dishing USD in favor of currencies from ally super-powers. I am very skeptical this has some room in Latam.

The United States will soon loose the advantage it has with economic warfare. Many countries have observed how quickly the United States issues out economic sanctions and how deadly an effect it has had on the economies of the receiving country because of the dependence of these countries on the US dollar for international transactions. Russia is an example of one and how sanctions generally affected all its citizens.

This new development will be widespread soon because many countries want to reduce that advantage that the US has over them.

Oh, China, you sneaky little devil! Trying to replace the mighty dollar with your yuan? Good luck with that! You think you can just bully the non-smart countries into using your currency and exporting your inflation? Think again!

But, let's be real here, who needs a reserve currency anyway? Why not just use Pokemon cards or Chuck E. Cheese tokens? That would be way more fun and exciting! And, if China wants to be the emperor of the world, why not just declare themselves the new Galactic Empire and force everyone to use Galactic Credits? I'd totally sign up for that!

In fact, the so-called "going countries away from the dollar" is just China's game. The game is that he has brought together a group of, no offense, not very smart countries, and replaces their international currency reserves, from a highly liquid dollar to his yuan. China has several goals here:
1. "Export inflation" of the yuan to other countries. Now they will pay for the depreciation of the yuan, at the expense of their citizens.
2. The flow of dollar reserves from non-smart countries to the bins of China. The dollar is critical for China, and China's rejection of the dollar is a synonym for "China is returning to the 70s of the last century. Peripheral, backward, agrarian country producing cheap consumer goods"
3. China recognizes the world as bipolar, where the first pole is the US, the second is China. And China needs to create a "servant environment, within the framework of the usual concept of empire. Someone will be a raw material appendage, and someone will be a" tame dog "who, having no dollar, i.e. the opportunity to buy on a civilized market, will be forced to buy only from China. And for this, all the "servants" of China should receive income and pay only in Yuan, and as a matter of fact, they should not have a dollar in their reserves.

If everything goes as China plans, in 5 years you will see how "partners in the fight against the dollar" will begin to squeal and return again to the international open economy and markets, where the currency of mutual settlements is the dollar. True, not everyone will return ... Someone will completely lose their independence and become a "region of China"

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.

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.

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.

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

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.

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.

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

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.

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.

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.

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.

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.

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.

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.

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.