Lmst

@dalfen it is part of #trump’s plan to devalue the dollar. That will make exports cheaper and narrow the trade imbalance, and make #us labor appear cheaper, and bring more jobs to the #maga

Unfortunately, dollar hegemony will be gone, and we’ll be financing the debt with #renminbi, and fixed income seniors will suffer

Problem solved!

@ChrisMayLA6 @adamtooze

Presumably the #euro and/or the #renminbi - just possibly the #rupee !

It seems to me #Trump is playing a dangerous game with his latest threat against the #bric nations.

He's probably okay for now, with the threat, but if they call his bluff, it'll start a snowball rolling he won't be able to catch, and neither will succeeding #us presidents. The way I see it is this.

The #usa imposes 100% tariffs on imports from #china so china can't pay #opec countries in #dollars so #opec have to start using another #currency and the circle goes on.

But this circle is really a snowball because it will gradually affect more and more countries, until only #europe can still pay in #dollars for #oil.

Then trump is between a rock (his oil company buddies) and a hard place, his tariff war with #china whose currency is now growing in importance.

Substitute the #renminbi for whatever alternative to the dollar takes off and you have the spiral in clear view.

If Trump is really lucky, the #euro will be the coin of choice, because at least that way, he'll be able to use it too.

This policy belongs to one of those special cases, like having kids, where the choice is literally irreversible.

For all people rail about his other policies they#re not in this class. Admittedly with great cost, they can all be undone.

This one can't. It's a one way ticket.

A cheaper #renminbi could partially or entirely offset the effects of the extra 10 percent tariff on Chinese goods that #Trump said on Monday he would order on his first day in office. #CurrencyWar https://www.nytimes.com/2024/11/26/business/trump-tariffs-us-china-currency.html

Potentially earth-shaking: #BRICS #summit chooses #China 's #renminbi as its #currency of #international #exchange
https://eurasiamedianetwork.com/brics-pay-a-new-era-in-global-finance-unveiled-at-kazan-summit/

In the last year China's international transactions & market-based activities have been dominated by the use of the renminbi (now used in more transactions than the dollar).

The Q. s are: what might this indicate about China's aspirations to be more than a factory state?

How does this reflect the continuing decline of the role of the dollar, and does it matter?

In one sense it shows great confidence in China that the renminbi is stable in global markets.

#renminbi #China #economics
h/t FT

FX: #Asia ‘s CBs struggle to contain strong US #Dollar – shifting US interest rate expectations put pressure on #Japan ‘s #yen and #China ‘s #renminbi - chart @FT https://www.ft.com/content/ad6c7827-a476-412d-899f-a1a12845b6e5?segmentId=b0d7e653-3467-12ab-c0f0-77e4424cdb4c

FX: de-dollarization? ---The #renminbi makes up just 2.3% of SWIFT payments, versus US #Dollar ’s share of 43% and #euro ’s share of 32%, chart @JPMorganAM

#China The continued selling by foreign investors is also expected to weigh on #renminbi ’s exchange rate. After rallying in July backed by direct and indirect state support, the currency has since reversed course, chart @FT

FX: #Russia and others have also begun to use #yuan in transactions that don’t even involve #China - #Bangladesh, e.g., agreed with Russia last month to settle a $300mio payment related to the building of a nuclear plant near Dhaka in #renminbi - @markets

There is often talk about the pivot to the East, both in politics & economics, as a reflection of the global political economic power of #China.

One more bit of (recent) evidence is the doubling of trade financing (loans & facilities used in the #internationaltrade) that now uses the #renminbi;

certainly this remains a small proportion of dollar financing but since the start of the Ukraine war it has gone from 2% to 4% global share (for comparison the Euro is used in around 6% of trading).

Murky #coinbros are trying to incant something into being here. Bonne chance, comrades.

#CCP #china #renminbi #cryptobros #worlddomination
@cryptonewsbot

@lauriebidaho We can keep printing money: we are the world's currency (until the #GOP sends us into their planned default). As such, most all international loans are paid-for in USD, which we can print. It is an unfair advantage, but one we need. If the #christianNationalist and #libertarians get their way and the world currency becomes #crypto or the #renminbi , then the US will become yet another 3rd world country.

TODAY (1/30) @ 8pm EST, join #DCG201 Co-Founder Sidepocket for #CryptoBarons 💹 as we wrap up #ChineseNewYear🧧looking at #eYuan, the digital finance platform #China is using to replace #cryptocurrency...and why the #USA will be next!

Watch on #Twitch, #YouTube, @peertube, @torproject & @odyseeteam: https://linktr.ee/defcon201

#blockchain #defi #centralizedexchanges #fiat #banking #finance #China #RMB #renminbi #DCEP

Cartoon illustrative drawing pink and black of a suited man that you only see his hands holding a smartphone with a image of the Chinese Yuan featuring Mao Zedong with two East Asian coins in the background and further in the background a circular portal where we see traditional Chinese buildings.

While #China has been growing its share of #trade with the rest of the world, resulting in #renminbi gradually accounting for a larger portion of FX reserve markets, and slowly reducing its dominance in the UST, chart @MorganStanley

#China is changing its tactics on #renminbi, with a shift away from direct intervention and towards lower-profile, indirect tools to steer the market.
The currency dropped almost 8% last year against the soaring US #Dollar - chart @FT https://cutt.ly/L2bzVrq

New article by Michael Pettis on why the #Renminbi is unlikely to replace the #USD:

"Because the widespread global use of a currency is determined by the benefits that global households, businesses, and governments can obtain from the use of that currency, for the renminbi to replace the US dollar, a number of conditions have to be met that accommodate the needs of the global economy."

https://www.elgaronline.com/view/journals/roke/10/4/article-p499.xml