Topic: Whats the talk about china new digital curremcy and de-dollarisation ? (Read 115 times)

The term "de-dollarization" means to start using other currencies besides the dollar or gold to conduct international cross-border transactions, especially oil trade.

Since Nixon decided to abolish the link between the dollar and gold, USD linked to oil and the petrodollar was renamed.
Therefore, most countries (80%) of the world's oil is sold against the dollar, and the lack of this hegemony will affect the United States because domination in the world means economic, scientific and military superiority.



The stability of the dollar as a currency for trades between countries and its use of more than 50% for trade between oil and about 68% as a reserve will force all countries to be affected by inflation in the United States and thus ensure that all these countries share the burden of public debt, including ensuring the supremacy of the United States.


These reserves are still far from affecting USD, perhaps we need a III world war to reduce this effect, so "de-dollarization" is still dreams.

If you are living in a nation that has dollars as backup reserve currency, then you should be fine with dollars and there is nobody that tries to de-dollarize you or anything. I mean if you read news and believe them and make your judgement based on that, then you may get screwed and that is all on you.

Just look at your nation and what they use as reserve foreign currency and you will see which currency you should trust. Obviously if you live in Asia and your nation as Yuan as their reserve currency then you could be fine with not getting dollars but getting yuan, because that is the most popular in your nation, but that is the only case where that would be okay.

De-dollarization has an entry in Wikipedia. While Wikipedia is not a great source, it at least provides you with a little overview of how various countries are shifting to other currencies in international trades.

Personally, however, while I agree with de-dollarization to a certain extent, it has now become a sort of an agenda of anti-US countries like Russia and China. I agree that countries trading with each other should be using their sovereign currencies rather than use a foreign one. However, it seems to me that the purpose of de-dollarization nowadays, especially by China, is no other than replacing the USD as the most powerful currency in the world. That doesn't sound attractive to me.

Incidentally, just a few days ago, the value of the Chinese yuan has experienced a sudden rise after Saudi Arabia considered pricing its oil in Chinese yuan rather than USD. The yuan is now gaining more foothold in international trades. I personally don't like it.

De dollarization is the process of china, japan and other nations reducing exposure to american debt by selling the number of US bonds they hold. This has been an ongoing process for years, in response to growing US national debt. Nations like china (and I think russia) have also sought to denominate oil transactions in their native chinese yuan, rather than the US dollar. Some world leaders (who I won't name) have been very vocal about the potential demise of the US dollar and cheered on the trend. They apparently believe their "kill the united states" goals align with global de dollarization.

Some conspiracy theorists go so far as to claim that Saddam Hussein was removed from power in the 2nd iraq invasion due to him opting to use the euro in oil transactions, rather than the dollar. And so our global trend of de dollarization could stem as far back as the 2nd iraq war.

Someone well schooled in history and economics could probably discuss the rise and fall of former reserve currencies which precede the dollar. I can't remember details but the rise and fall of reserve currencies could easily be as common as rising and falling of ocean tides. Our current de dollarization could be but one of many trends throughout history, correlated with the demise of a reserve currency.

     Maybe op is referring to not being reliant on US dollars by the use of their own new digital currency? Just like how Russia made precautions back then and did not invest solely on US dollars and instead spread out to a wide variety of currencies. I may be just assuming because he's post is quite lacking in information but regardless, if we talk about the fall of US dollars, it is not a matter of if but when. And China has huge potential to overtake considering how things are going. I won't go into deeper detail co it'll take too long but no worries, these are easily searchable online.

Isn't it about not using the dollar (USD) as one of the main currencies within their economy? Like they wouldn't entirely focus on it or something? Or maybe they wanted to make their digital currency and peg it as something like the dollar? I'm curious about what they can gain from this because I think that it will be what they want, control over it.

If the USD gets more and more inflated, I will not be surprised that it will lose its value.

The below is what I got using Google search on the term dollarisation:-

There is no source for your information so it is not exactly clear what is the connection with China in dollarisation, they don't fall on that category. But if you are in a country with weak economy and the local currency is losing value rapidly, only then you should be worried.

What is the talking about china will become world power of new currency.
De-dollarisation...could it be trap ? Like right now we give our dollars away and suddenly usa influence all over the world and dollar value will increase even more and those who got dollars are winners.
Could it be the fud to get weak hands give them assets away to whales in this case usa dollars.

China russia trade volume still far away to exeed usa china trading deals volume.

Opec still use dollars right ? Maybe the oil is not dominant in the world maybe dollars will be backed by sugar or salt lol or china will back their currency with rice ??

Can someone explain us better this so called: "de-dollarisation"