China to replace the dollar with the yuan as the world's main reserve currency

I don't know how reliable this Newsmax story is but it certainly is news-worthy if true! You be the judge...

Thru the help of the Asian Infrastructure Investment Bank:

"The dollar has been the world's reserve currency since the end of World War II, but that is rapidly changing. . . . Russia and especially China are trying to remove the dollar from their trade and from their investment in foreign exchange transactions."

How would China accomplish this?

"They are targeting this in a variety of ways," he said. "If they can remove demand from the dollar, our currency will be much more volatile and our economy will have many more problems than we've had over the decades because of our reserve currency status."

Source

Welcome to ChinAmerica, folks!

a reply to: Ultralight

Lol good luck.

America has the world's most stable gov and most stable currency, backed by the richest nation and most diverse culture in the worlds history.

Chinas entire economy will implode tomorrow if we start buying our goods from India.

Well yeah, this has been going on for many years now.
China and Russia signed a mutual trading pact a few months ago and dont trade the US dollar for oil anymore

Other countrys have signed up and the US has been cut out of the oil deal.
Its history, as is the US, US citizens fiddled as their economy burned, stood back and did nothing, the US petrodollar is over.

Its accomplished

originally posted by: borntowatch
Well yeah, this has been going on for many years now.
China and Russia signed a mutual trading pact a few months ago and dont trade the US dollar for oil anymore

Other countrys have signed up and the US has been cut out of the oil deal.
Its history, as is the US, US citizens fiddled as their economy burned, stood back and did nothing, the US petrodollar is over.

Its accomplished

Yes because China would thrive without the US buying all their crap... Sure...

Just Russia's economy thrashing around in death pangs from sanctions.

a reply to: johnwick

If the US govt is the world's most stable and ours is most stable currency WE ARE ALL DOOMED!!!

originally posted by: Ultralight
a reply to: johnwick

If the US govt is the world's most stable and ours is most stable currency WE ARE ALL DOOMED!!!

It is a fact, that is why ours is the reserve currency.

There is nothing better.

So ya we are all screwed.

a reply to: johnwick

Fact, huh?? Can you pony up a source or two on that fact?

Most of China's 3 trillion in cash reserves is in US Dollar bonds. China has no interest in hurting the dollar. What China does want is become a reserve currency. That requires IMF approval and US backing. The US thinks the Yuan is to unstable along with China's banks. China is working in this by adding things like some protection for deposits. Once China fixes a few things it should get reserve status with US backing. Of course it would take decades for it to even get a tiny precentage of the reserve market. So no, this is no threat to the dollar.

Doesn't the Chinese Gov't artificially "peg" their currency to the dollar? The yuan would need to compete in the open market and make it on its own before it became the reserve currency.IMHO

a reply to: Ultralight
This is like the millionth article I have seen on this over the years. In the old era when gold, silver, petro dollar, GNP and other such 20th century things were dominant it might be possible that could happen. In the 21st century the new coin of the realm is technology and military might.

originally posted by: Ultralight
a reply to: johnwick

Fact, huh?? Can you pony up a source or two on that fact?

Can't link from my phone, try Google it works.

a reply to: Enochstask

I can't pay my electricity bill by technology. They expect money for some strange reason...

originally posted by: buckwhizzle
Doesn't the Chinese Gov't artificially "peg" their currency to the dollar? The yuan would need to compete in the open market and make it on its own before it became the reserve currency.IMHO

Yes it is artificially low on purpose to make exports cheap

Thus they get a lot of business.

But since it is artificially set not market set it is a giant unknown.

Thus will never get reserve status until they let it loose to see what it does.

Which by many estimates is increase value by more than half all the way to doubling.

Which is very unstable.

Exports from China would drop overnight.

India would pick up a huge stake and the yuan would drop off fast.

Hence it is not stable.

a reply to: johnwick

Nice try...your fact..you post a source link....we can wait until you have access to post a link from your computer or tablet, no worries!

a reply to: MrSpad

It is a threat and it's happening now. Not tomorrow, now. Even though their banking sector is just as terrible as ours (in some ways worse), AIIB is way for China to use flex it's foreign policy using soft money. More importantly break that dollar hegemony. You don't take on a beast like the USD head on.

At the same time, no way they would do something to harm those billions in FX reserves. I think that they are buying gold with it. Lots and lots and lots of gold. Word on the street is that China is sitting on 8500 tons by conservative estimates (that is if believe that source of info).

China is positioning itself so that other countries would rather use the yuan than the dollar. Still gotta use a dollar swap when buying stuff from overseas. A position that will soon change.

a reply to: cenpuppie

Precisely!! People should pay close attention to this and ensuing articles going forward. This is a country that holds 1/3 of our national debt.

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originally posted by: Ultralight
a reply to: johnwick

If the US govt is the world's most stable and ours is most stable currency WE ARE ALL DOOMED!!!


It is a fact, that is why ours is the reserve currency.

There is nothing better.

So ya we are all screwed.

So in other words Johnwick, We're the 80 year old floozy left at the bar at 2 AM and the only reason we're wanted is because there are no better choices left. I suppose it's down to whatever that you can get at that point. Our Government and The Dollar being of the same ilk as said Lady LOL Arjunanda a reply to: johnwick

originally posted by: Ultralight
Russia and especially China are trying to remove the dollar from their trade and from their investment in foreign exchange transactions."

And so what currency are they planning to use since both of theirs are basically a dead currency to the world...

The closest so far has been the move to create the Euro dollar and we see how that is going...

Even the Middle East has been minimized as to the power that they worked so hard to build. Both Russia and especially China both live on a false economy that is not sustainable. The fall of the iron curtain came about due to Russia trying to play tit for tac with the US and it didn't work...

a reply to: Ultralight

So you are whining about posting a link, when your source is newsmax?

Seriously? Wow....

Newsmax....

He was asking you to do simple research which is very easy this day in age with the internet and search engines like google.