It’s true that a lot is going on in the US, but I wouldn’t say Yuan or any of the other currencies will overtake USD. I think their economy is really strong compared to what we have in other countries. There are lots of big businesses there. Majority of the biggest Businesses in the world, if not all, are all located in the US.
Things might have gone a little bad at the earlier time when the pandemic started, but I don’t believe that it’s the same now. Compared to my native currency, the dollar still appreciated at this time of difficulties, so it’s still strong, and I guess we should not spread something which cannot be taking place right away or may take a decade of time from now. Yes, I guess USD may remain as world's reserve currency for at least another decade as well.
Topic: The End of "USD" as the World's Reserve Currency - page 3. (Read 1306 times)
There's a problem with this approach
And the problem is that someone's gotta pay for this "competitive advantage" as there's always two sides to the equation. Ever heard of the inflation tax? Right, it is the local population en masse who will be paying it. To put it in more mundane terms, simple people will have to work for free a certain amount of time for the exporters to obtain that advantage
And the problem is that someone's gotta pay for this "competitive advantage" as there's always two sides to the equation. Ever heard of the inflation tax? Right, it is the local population en masse who will be paying it. To put it in more mundane terms, simple people will have to work for free a certain amount of time for the exporters to obtain that advantage
What I know about the inflation tax is a tax that is charged to all who have money caused by the printing of money by the government (Seigniorage). As exporters, even if we suffer losses due to foreign exchange differences, we must still send goods to importers. So when the dollar strengthens we can breathe easily to cover previous losses.
I am an exporter of fresh and frozen seafood. Not using imported goods or imported raw materials so that production costs are not too affected by currency fluctuations, but corporate profits depend on a weakening and strengthening dollar. In addition, the higher the income, the higher the income tax.
The situation with the currency is really on the verge.
Although the current situation is much worse it will be restored as soon as the epidemic ends. The use of the US dollar is declining due to the epidemic in the world everyone is trying to print money. When the effects of the virus subside everything will return to normal.
The situation with work is really catastrophic, and printing money alone cannot solve the problem. We need to start the economy as early as possible, but without a threat to health
You are right that all these problems can be easily solved if the economy of the country improves. This kind of crisis is happening because the economy is disrupted The circulation of the currency depends on the economy of the country.
if the country is improving , that only means that problems are slowly being solved out . you cant say that your going to wait for the economy to improved without doing anything because nothing will happen but it takes people action to see an improvement . we faced crisis due to covid and that makes the economy got disrupted , not the other way around . currency cannot circulate properly now because like we said earlier there are still crisis . people are budgeting or hodling thier cash and others are simply cant earn
The situation with the currency is really on the verge.
Although the current situation is much worse it will be restored as soon as the epidemic ends. The use of the US dollar is declining due to the epidemic in the world everyone is trying to print money. When the effects of the virus subside everything will return to normal.
The situation with work is really catastrophic, and printing money alone cannot solve the problem. We need to start the economy as early as possible, but without a threat to health
You are right that all these problems can be easily solved if the economy of the country improves. This kind of crisis is happening because the economy is disrupted The circulation of the currency depends on the economy of the country.
I think the situation mentioned is very low probability of reality. Personally, I think that the US dollar will continue to be used as a reserve currency for a very long time, regardless of the world. Of course, if I need to evaluate according to today's conditions, I would like to remind you that this possibility of change can also occur with Covid-19 vaccine.
You can't end USD, this is the united states of America we are talking about, even though I hate most of their politicians and I am not from there and live in a country that is affected by them a lot, I have to see the fact that they are super rich and have too much money involved all around the world.
They figured out from England that if you have money but do not use it, that money doesn't mean anything at all, you have to invest that money into something and they did it for themselves for centuries but for the past 50 years they have been investing to other countries as well. So, either they get richer and prominent currency themselves or other nations go decent and they still profit from it as well. The economical power they hold is uncanny and even China who makes more profits do not have the same power.
They figured out from England that if you have money but do not use it, that money doesn't mean anything at all, you have to invest that money into something and they did it for themselves for centuries but for the past 50 years they have been investing to other countries as well. So, either they get richer and prominent currency themselves or other nations go decent and they still profit from it as well. The economical power they hold is uncanny and even China who makes more profits do not have the same power.
USD is still going strong. None of the other fiat currencies are strong enough to offer any competition to the USD. CNY was one of the potential competitors, but its reputation is almost destroyed now. EUR and GBP were potential competitors, but they are also lagging behind now. JPY is still going strong, but it is not used much for international trade. And the cryptocurrencies are still in their infancy, being used by only a few million people.
Some people support the USD and some fought against USD. But all the time,USD is the king of currency in a world market.It had a control over all the currency and it only made the value of other currency.The price of many currency is based on USD .Bitcoin will be king in the crypto a like a USD in the market.
USD is still going strong. None of the other fiat currencies are strong enough to offer any competition to the USD. CNY was one of the potential competitors, but its reputation is almost destroyed now. EUR and GBP were potential competitors, but they are also lagging behind now. JPY is still going strong, but it is not used much for international trade. And the cryptocurrencies are still in their infancy, being used by only a few million people.
I hope that the US sees the light at the end of the tunnel after the demise of COVID-19. Constant money printing by the FED will only worsen the US economy. The debasement of the United States Dollar might lead other world currencies to victory. China is already the world's second-largest economy, which indicates us that the Chinese Yuan might become the world's next reserve currency. If China's central bank manages to launch its own CBDC before any other country, it could lead the world's economy as we know it.
Not all parties are happy if the dollar weakens. I, as an exporter, feel happy if my country's currency weakens in other words, I get greater profits, especially in the current pandemic. Likewise, with China, China will deliberately weaken the Yuan currency so that production costs are low and the price of Chinese goods can compete internationally
There's a problem with this approach
And the problem is that someone's gotta pay for this "competitive advantage" as there's always two sides to the equation. Ever heard of the inflation tax? Right, it is the local population en masse who will be paying it. To put it in more mundane terms, simple people will have to work for free a certain amount of time for the exporters to obtain that advantage
It was a predictable event, no matter sooner or later. Covid crisis and mass protest undermine the US authority, so the dollar is loosing its value. I bet the new world reserve currency will be a certain CBDC.
The dollar became a huge problem and there is no solution.
You can't remove it, you can't replace it, you can't let it become too valuable, you can't let it go too low. Whatever happens to the dollar, somebody is not going to like it.
You can't remove it, you can't replace it, you can't let it become too valuable, you can't let it go too low. Whatever happens to the dollar, somebody is not going to like it.
I hope that the US sees the light at the end of the tunnel after the demise of COVID-19. Constant money printing by the FED will only worsen the US economy. The debasement of the United States Dollar might lead other world currencies to victory. China is already the world's second-largest economy, which indicates us that the Chinese Yuan might become the world's next reserve currency. If China's central bank manages to launch its own CBDC before any other country, it could lead the world's economy as we know it.
Not all parties are happy if the dollar weakens. I, as an exporter, feel happy if my country's currency weakens in other words, I get greater profits, especially in the current pandemic. Likewise, with China, China will deliberately weaken the Yuan currency so that production costs are low and the price of Chinese goods can compete internationally.
De-dollarization who was previously voiced by China and Russia turned out to be a dilemma because after all the large dollar ownership in the country's foreign exchange reserves was a powerful weapon in maintaining economic stability and making it easier for the central bank to adopt market operations policies. A country must diversify its foreign exchange reserves to reduce its dependence on the dollar, including building a "shadow foreign exchange reserve.
1.7% vs 58% is a very big difference not to mention the other barriers even though China has this CBDC it will not mean anything in foreign countries. Let's say China wants to buy oil from Saudi Arabia, Saudi Arabia won't want to be paid with Yuan because Yuan won't be able to be used to make transactions with other countries.
The post below can be a reference
https://bitcointalksearch.org/topic/m.54121990
The USD will surely be seriously affected after the epidemic is over. In the coming time, if the US still cannot solve the unemployment situation of the people and some medical equipment, it is likely that FED will have to print more money to support the economy again. I feel the US is losing its position before China and it is no surprise that Yuan becomes the most valuable currency.
I hope that the US sees the light at the end of the tunnel after the demise of COVID-19. Constant money printing by the FED will only worsen the US economy. The debasement of the United States Dollar might lead other world currencies to victory. China is already the world's second-largest economy, which indicates us that the Chinese Yuan might become the world's next reserve currency. If China's central bank manages to launch its own CBDC before any other country, it could lead the world's economy as we know it.
For now, we'd have to wait until there's a vaccine or cure for the dreaded coronavirus disease. Then we can tell how the economy will recover. The larger the unemployment rate in the US, the worse it'll be for the American economy. USD or not, I think that the world's economy will most likely remain the same. The difference is that we'll be living in a cashless society where paying with physical cash is no longer feasible. It may take a long time before the USD will lose its status as the reserve currency of the world. Just my opinion
China and Russia, ready to see the dollar crash. And dollar can not currency for global trade forever. Things evolve, powers shifts, which force realignment
Do you know how much of the US government's debt China holds? Over 1 trillion dollars, taking the second place among all foreign holders of the US debt (with Japan being a little ahead). Just curious if you are still going to support the idea that China is ready to see the dollar crash. And while many people naively think about how much America owes China, it is in fact the other way around. This "debt" essentially shows how much China depends on the US. Just ask yourself why China would ever want to buy US Treasuries (which this debt is mostly made up of)? But seriously?
And the takeaway is that if America goes downhill, China will follow twice as fast
Leadership in western worlds lacks vision to curb Chinese influence, and it might be already very late to wake up to that reality.
hoping the CIA to turn China upside down from within their country. Coming years will be so crazy and we all will see a big tussle to remain or become a superpower in the world.
hoping the CIA to turn China upside down from within their country. Coming years will be so crazy and we all will see a big tussle to remain or become a superpower in the world.
America is hot because China has succeeded in shifting the dominance of trade and even the financing sector with the OBOR program. But I assume that America does expect an equal rival in order to declare war and after that emerge victorious. The winner takes all, with America as the winner, America has the authority to regulate. We can learn American customs when conquering Japan and Germany in World War Two.
America has indeed carried out many strategies to conquer China from the broken petal strategy, containment policy to biological war. But Xi is also a nationalist like Trump so he won't give up easily. China only imitates the American strategy and then modifies it by improvising. The November election was a scourge for Trump, he needed a victory card to advance to the second round.
Yes the US economy might be a little bit shaky now but that does not mean they will go flat. To me its kind of normal considering the suituation the world is in right now. But it's just a matter of time and the US economy will pick up and they will go back to where they have always been, which is the top
Maybe I will surprise you, but if the United States slides into a recession, then the rest of the world will be there. Since the dollar is the main world currency, and in the event of any fluctuations with it, these problems quickly move to the rest of the world.
Agree. There was a dollar shortage for years now. So even if Fed printed trillions, it did not matter as the market absorbed that supply. But it's not like the Fed can keep printing and keep pumping markets. They have great powers but everything is finite and has limits.
I think sooner or later, this will take an ugly turn and a long impact on economy in a negative way.
China and Russia, ready to see the dollar crash. And dollar can not currency for global trade forever. Things evolve, powers shifts, which force realignment.
Leadership in western worlds lacks vision to curb Chinese influence, and it might be already very late to wake up to that reality.
hoping the CIA to turn China upside down from within their country. Coming years will be so crazy and we all will see a big tussle to remain or become a superpower in the world.
The situation with the currency is really on the verge.
Although the current situation is much worse it will be restored as soon as the epidemic ends. The use of the US dollar is declining due to the epidemic in the world everyone is trying to print money. When the effects of the virus subside everything will return to normal.
The situation with work is really catastrophic, and printing money alone cannot solve the problem. We need to start the economy as early as possible, but without a threat to health
The situation with the currency is really on the verge.
Although the current situation is much worse it will be restored as soon as the epidemic ends. The use of the US dollar is declining due to the epidemic in the world everyone is trying to print money. When the effects of the virus subside everything will return to normal.
The USD will surely be seriously affected after the epidemic is over. In the coming time, if the US still cannot solve the unemployment situation of the people and some medical equipment, it is likely that FED will have to print more money to support the economy again. I feel the US is losing its position before China and it is no surprise that Yuan becomes the most valuable currency.
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