Chinese Yuan Overtakes the Dollar: BRICS Drive De-Dollarization Surge \ stacker news ~econ

Chinese Yuan Overtakes the Dollar: BRICS Drive De-Dollarization Surge

810 sats \ 24 comments \ @TomK 26 Aug econ

BRICS nations are witnessing a seismic shift in global trade dynamics as the Chinese yuan surges ahead of the U.S. dollar, particularly in Russia. China's strategic maneuvering, leveraging U.S. sanctions against Russia, has accelerated the de-dollarization trend within the BRICS bloc. Treasury Secretary Janet Yellen has conceded that these sanctions have inadvertently bolstered local currencies while undermining the greenback's dominance.

China's relentless push for the yuan as the preferred currency in international trade is now bearing fruit. Russia, in particular, has seen a significant shift, with the yuan becoming the most traded currency within its borders. This momentum is encouraging other developing nations to pivot away from the dollar, increasingly opting for the yuan and the Russian ruble in cross-border transactions.

https://watcher.guru/news/brics-payments-in-chinese-yuan-surpasses-the-us-dollar-by-2-5#google_vignette

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57 sats \ 8 replies \ @Undisciplined 26 Aug

I suspect the US could still rug them, by dropping all these stupid sanctions.

39 sats \ 6 replies \ @Solomonsatoshi 26 Aug

Drop the sanctions ~ and the US car industry is dead tomorrow.

0 sats \ 5 replies \ @Undisciplined 26 Aug

Then that means we're wasting resources by pretending to be good at making cars. Good riddance.

23 sats \ 4 replies \ @Solomonsatoshi 26 Aug

What can the USA produce today at a competitive advantage relative to other economies?

0 sats \ 3 replies \ @Undisciplined 26 Aug

It's still a very productive economy, there's lots of stuff that can be made in America.

Also, the way comparative advantage works, you don't really have to worry about aggregate productivity. Specialization and division of labor are almost always welfare enhancing.

38 sats \ 2 replies \ @Solomonsatoshi 26 Aug

China has gutted the industrial heartland of the USA over the last 30 years because they produce things cheaper and smarter and so if you take out the auto sector now then you need to find other jobs or see even greater dislocation, unemployment and despair.

The USA is only still solvent because of its global USD hegemony enabling $35 Trillion debt- but this is not sustainable much longer.

Biggest exports from USA today are military hardware and banking services- ie death and debt.

0 sats \ 1 reply \ @Undisciplined 26 Aug

America is not the wealthiest nation on Earth by pure chance. It's because it is still very productive.

Now, will there be major economic adjustments because of China's growth? Sure. The nature of a market economy is constant change and adjustment. That's creative destruction.

I don't know exactly what the final result will look like, but I do know it won't be China producing everything and America producing nothing.

0 sats \ 0 replies \ @Solomonsatoshi 26 Aug

America was blessed with vast resources and opportunities and distance from the warring of Europe. America came to inherit the global resource hegemony of Britain post WW2 and with that global USD hegemony over trade payments via SWIFT. Today USAs wealth and power is based on its domination and control over global institutions, protocols and trade with the worlds largest military to back it up. But USA today does not enjoy the massive advantage it had post WW2 in manufacturing. Today China enjoys that position. Thus it is China that buys the commodities from commodity producers and sells manufactured goods to almost everyone. China thus controls the markets in many commodities and manufactured goods. Few if any nations today can afford to cease trading with China because its economy is so dominant in both commodities and manufactured goods. China can provide Russia and Iran with almost all the manufactured goods they need at the best prices and can buy all of their oil and gas exports. USA does not have such a comprehensive and broad mercantile dominance and is thus vulnerable if/when it loses its control over trade payments/banking...and this is already happening - USA is losing its monopoly over trade payments because now China can offer a broad and effective Yuan denominated alternative.

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97 sats \ 0 replies \ @TomK OP 26 Aug

I think so, yes. But either The Donald nor Kalamari will do that.

47 sats \ 5 replies \ @SatsMate 27 Aug

We definitely know dollar dominance will fall over the next decade, but the BRICs alliance will definitely censor when they get the chance to just like NATO alliance did. Perfect case for censorship resistant money!

21 sats \ 4 replies \ @TomK OP 27 Aug

Right. But we need more adoption. Here on Europe there is nothing going on. Best indicator are the cash deposits of the germans which is growing and growing. Only answer I get if I mention bitcoin is a mild laughter.

47 sats \ 3 replies \ @SatsMate 28 Aug

Colleagues come up to my desk on a very frequent basis now asking me about bitcoin and how I need to cash out. People in the U.S. are always chasing after fiat games in the rate race.

https://m.stacker.news/48542

21 sats \ 2 replies \ @TomK OP 28 Aug

Oh man. I think we'll have to face some tough years. Here in Spain is 0 interest in btc. Even the young generation shows no curiosity

47 sats \ 1 reply \ @SatsMate 29 Aug

The interest seems to be on all these centralized mind control social media platforms like TikTok, Instagram, Facebook, etc!

0 sats \ 0 replies \ @TomK OP 29 Aug

the control of narrative and of thought and public expression is more important than ever, the more this system is inclined to develop tyrannical elements, which we are currently experiencing, especially in Europe

47 sats \ 1 reply \ @Satoshi__Nakamoto 26 Aug

BRICS doing all the effort to surpass the US doller domenation. But I think they can't

0 sats \ 0 replies \ @TomK OP 27 Aug

They will stabilize their economic bloc by exporting energy and running positive trade balances.

47 sats \ 0 replies \ @Solomonsatoshi 26 Aug

China now offers the almost full suite of manufactured goods required by an economy so can provide countries like Russia and Iran with an alternative to the USD SWIFT global; trade payments hegemony. As Iran found recently helicopter parts are sometimes among the few remaining products not yet covered by Chinese reverse engineering. However despite such occasional gaps, overall China has won the trade war - China produces manufactured goods at a better price and value than any other economy. There is no economy of significance that today that can cease trade with China without losing significant economic advantage. In contrast the US does not produce anything much at a better price and value than competitors- the USA relies now almost entirely upon its legacy monetary, protocol, institutional and military dominance. This makes the West far more vulnerable than most people realise. The trend is toward growing Chinese power and accelerating challenge to the USD. Both Iran and Russia are now attacking the West with Chinese support in proxy wars on multiple fronts at huge cost to the West. China gets cheap oil and gas and Iran and Russia almost exclusively buying from Chinese manufacturers. There is a tipping point where trade swiftly shifts away from the USD and the CBDC Yuan is suddenly the new monetary hegemony. It is at that point that Taiwan can be taken with little or no resistance from the West.

47 sats \ 1 reply \ @beorange 26 Aug

These kind of sanctions have side-effects. Many people raised this possibility at the time. Some think it is reversible, some think it is not.

0 sats \ 0 replies \ @Solomonsatoshi 26 Aug

Iran has survived these sanctions for over a decade, demonstrating that China can now provide a viable alternative to the SWIFT trade payments system. USA cannot force China to comply with its sanctions and China is demonstrating its independence from the US hegemony and building its alternative.

47 sats \ 1 reply \ @Svoboda 26 Aug

Actually just posted this on nostr a few minutes ago. I just don't think China wants to be the world reserve currency and have to defend it. Also, now that they're in BRICS, if I'm one of the partners I don't want one country to have the upper hand -- that is precisely what led to the US oppressing all of us.

I only know of one trustless monetary protocol that seems perfect for what they want to do. Anyone know what it is?

0 sats \ 0 replies \ @Solomonsatoshi 26 Aug

Well said and it could happen but Bitcoin is so much the antithesis of the CCP world view it's hard to imagine. It would be an interesting development if Bitcoin was adopted for international trade settlements ~ all trade would then be on a much more equal and fair basis. That would probably remove a lot of the resistance there otherwise will be to global trade denominated in CBDC Yuan.

47 sats \ 0 replies \ @BlokchainB 26 Aug

Bearing communist fruit!

0 sats \ 0 replies \ @Satosora 26 Aug

This only works if china can keep their economy stable. If their yuan gets hyperinflated, no one will want it. Its just a matter of time before china gets too greedy.