From Reuters: Argentina govt to pay for Chinese imports in yuan rather than dollars
BUENOS AIRES, April 26 (Reuters) – Argentina will start to pay for Chinese imports in yuan rather than dollars, the government announced Wednesday, in a measure that aims to relieve the country’s dwindling dollar reserves.
In April, it aims to pay around $1 billion of Chinese imports in yuan instead of dollars and thereafter around $790 million of monthly imports will be paid in yuan, a government statement said.
Petrodollar Dusk, Petroyuan Dawn: What Investors Need To Know
https://www.forbes.com/sites/greatspeculations/2023/03/27/petrodollar-dusk-petroyuan-dawn-what-investors-need-to-know/?sh=7c73065055aa
“U.S. Dollar Still The World’s Reserve Currency, But Its Dominance Is Slipping
Before you dismiss Pozsar’s comment as an exaggeration, consider that other major OPEC nations and BRICS members (Brazil, Russia, India, China and South Africa) are either accepting yuan already or strongly considering it. Russia, Iran and Venezuela account for about 40% of the world’s proven oilfields, and the three sell their oil in exchange for yuan. Turkey, Argentina, Indonesia and heavyweight oil producer Saudi Arabia have all applied for admittance into BRICS, while Egypt became a new member this week.
What this suggests is that the yuan’s role as a reserve currency will continue to strengthen, signifying a broader shift in the global power balance and potentially giving China a bigger hand with which to shape economic policies that affect us all.”Report
I guess it’s good that we got out of Afghanistan. We’re going to need those guys.Report
Breton Woods II is dead. With that, goes our Unipolar world. Sanctioning Russia was a mistake, worse was losing the Ukraine — and allowing Russia to show that sanctions had zero consequences.
If we were still in a Unipolar world, we’d just do to China what we did to Libya, for about the same reason.
(What, you thought Libya was about terrorism?).Report
This is nonsense. We here this every now and then. It will go away.
https://www.youtube.com/watch?v=LiR54FPQiCsReport
Yup, the very idea that people globally are going to store wealth in yuan instead of the dollar is so perversely laughable, it’s like doomsday preppers building out their extensive shelter or cargo cults erecting crude imitations of world war 2 airbases.Report
I agree that we’ve heard it before. Question is, when will we hear it again and when will it actually come to pass? You don’t really thing the Americana empire will continue on for a 1000 years do you. Things change..Report
The PRC can either have policies that tend to strengthen its currency in a move to be part of the basket of world reserve currencies *or* the PRC can have policies that tend the weaken its currency in a move to continue being an export manufacturing dynamo – *but it cannot do both*Report
RE: Which policy is “buy russian oil and sell it at an insane markup back to the Europeans?”
China needs every drop of oil it can get. It has zero ability or desire to export.
RE: Why can’t weak currencies bundle together and be “world reserve currencies”?
None of them want to go full EU with their currencies because they have nothing in common and they all want to manipulate theirs (and even collectively they’re not large enough).
For example if China gets rid of their export controls then Billions of Yuan flee the country until the controls are re-established. China getting rid of their controls is a non-starter but they’d need to in order to do something like this. China’s currency is absurdly unacceptable and also the strongest contender.
RE: America has demonstrated the ability to backstab anyone we don’t like, for any reason, using the World Financial System… Alternatives will be found, because you can’t run risk calculations on America’s Tantrums.
Good luck with that. That link above I posted listed the requirements needed to establish an alternative. The list of good candidates is zero.Report
An interesting thread:
The conclusion:
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