Will the Chinese Yuan Replace the U.S Dollar?

#china #yuan #eu #beltandroad #economy
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The Chinese “One Belt One Road” Initiative embedded its vision of Chinese Yuan internationalization in the global market. Today, we're privileged to host Haico Ebbers, an esteemed scholar in Chinese economy and EU-China relations, to share insights on Yuan's role in the global economy.

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[DarkVader-jjdt]

China has said many times that it does not want to replace the USD with the Yuan, it only wishes to avoid using the USD in global trade.

[hanfucolorful]

China said it would build a system not in US dollars and also not in Chinese Yuan, but a more fair system to everybody.

[FrankiePo]

Whether the Yuan replace the usd does not matter. What's important is the world majority are moving away from the usd.

[ButchCassidyAndSundanceKid]

It's China's intention to stay out of the reserve currency game.

[TeacherLisaHello]

The funny thing is…as EU and USA blocks further direct investment from China and raises the cost and risk of China investing in the EU or USa, it makes it more attractive for China to go to the rest of the world for lower returns, which in the end makes IMF and the World Bank less attractive and further eroding USa’s grip…

[kohcc]

China doesn't want their Yuan to replace the USD. They just want to depend less on USD in business/trading.

[twlamSG]

Somehow I digress. Whether Yuan will replace the dollar or not depends on sanction. If US decided to sanction too many country for not listening to it then dedollarization will hasten. But that does not mean USD will be replaced immediately just that US and USD will collapse under the weight of their debt. It has nothing to do with China. Once the dedollarization reached critical mass, the collapse is sudden. No countries wants to be the bag holder. If you need an example just look at how crypto currency implode. Human behavior and response during crisis will be the same if it is USD or crypto.

China doesn't want Yuan to be a reserve currency but they don't have a choice since this is decided by its trading partners. China's use of CBDC will have an important role to play.

[markchan]

Everything is a cycle the US should just except it and follow the cycle. Fight hard against it will bring them a serious downfall that they might never get back up again.

[gscsilvavaladares]

We live in the same world, the wins of one can, must and will be the wins for the others.

[freedumb_.]

The yuan is a currency. The dollar is a weapon.

[brianliew]

Any system is better than the one who's printing like there's no tomorrow. 😂

[ZapperJohn]

China is too smart to become the reserve currency. They see that Rome is falling, and they will not get in the way...lol

[vincetagleoficiar]

Yes, because China is a major exporter now of all kinds of goods❤

[mssv]

US printing and printing and raising interest paper money are overflowing....

[MSDGroup-ezzk]

According to the Peterson institute on its study on the spread of USD reserve across all continents in the world done in Dec 2023. It found that
1. Asia held USD 5 Trillion of USD reserve with China held USD 3.2 Trillion. Among that USD 3.2 Trillion, USD 700 billion was in US bonds form. Japan came 2nd with USD 1.2 trillion and all of it was in US bonds form.
2. Europe only held USD 1 Trillion.
3. Middle east held USD 800 billion
4. Latin America only held USD 600 billion
5. Africa held USD 85 billion.

According to the IMF, there was 12 trillion of USD reserve worldwide in 2022. If Europeans as the USA best friends only held USD 1 Trillion of the USD reserve, why does the world need to keep more?

What Peterson worried was if Asia dumped 25% of their USD reserve to something else like Yen, Yuan, Euro etc. If that happens, the USA will collapse overnight.

China is only copying Soros when he attacked the UK and Asia where Soros only death with cash. China now has more cash than the USA bonds that are less liquid. If China wants, it can drop all USD reserve overnight.

The question is why does the world need to keep USD if the US can freeze your country's assets in the USD reserve overnight?

[michaelsomething]

Price should be low when there are high inflation everywhere

[fffuu]

One country is dominating world trade earning some USD 600-800 billion dollars yearly but keeping quiet on their foreign exchange reserves and acquiring physical gold and keeping a low profile. On the other hand another country claim to own the world's largest gold reserves and goes on a spending binge by printing endless amount of money. You can be an idiot to know that the world reserved currency will be used by others driven by the market in the world trade and a currency belonging to a rich country with huge savings, foreign exchange reserves and physical gold holdings. No brainer.

[waichui]

The Yuan will not replace the US dollar because China does not want to eliminate the control over the capital account. They have so far shown no hint of eliminating the control over capital account.

As the US dollar decline in importance, the world may have a large number of international fund transfer mechanisms. It may be chaotic.

[rastoferi]

Now that they US won't sell them semiconductor, what is there to import from them? That's why even with a fixed exchange rate, China has largely avoided inflation. Think about how rare it is to find made in USA goods in the US and how much more so that is in China.

[fabinhop-pm]

Why not to create a global currency not linked to any country?