CHICAGO (VINnews) – For decades, the United States dollar has been the dominant currency for international trade, investment, and financial transactions. It has been used as the world’s reserve currency, with other countries holding large amounts of dollars as a store of value. However, recent developments in the global economy have led some to question whether the dollar’s dominance will continue in the future.
One of these developments is the increasing use of other currencies, such as the Chinese yuan, in international trade. The yuan has been steadily gaining in importance as China’s economic power grows. In recent years, China has taken steps to promote the use of the yuan in international transactions, including setting up yuan-denominated trading hubs and signing currency swap agreements with other countries.
The recent yuan-settled LNG trade between CNOOC and TotalEnergies is just one example of this trend. The trade, which was conducted through the Shanghai Petroleum and Natural Gas Exchange, marks China’s first yuan-settled LNG transaction. It is a significant milestone for China’s efforts to internationalize the yuan and reduce its reliance on the dollar.
China’s efforts to promote the use of the yuan in international trade are driven by several factors. One is the desire to reduce its exposure to the dollar and the potential risks that come with it. China holds a massive amount of US dollar-denominated debt, and any significant fluctuations in the value of the dollar could have significant consequences for its economy.
Another factor is the desire to increase China’s global influence and challenge the dominance of the United States. The dollar’s dominance has long been seen as a symbol of American power, and reducing its role in international trade could be seen as a blow to US influence.
However, despite these developments, it is still unclear whether the dollar’s dominance will come to an end. The dollar’s strength is still rooted in its widespread use and acceptance, as well as the size and depth of the US economy and financial system. While other currencies, such as the yuan, may gain in importance, it will likely be a slow and gradual process rather than a sudden shift.
Furthermore, the US has taken steps to defend the dollar’s dominance. For example, it has used its economic and political influence to pressure other countries not to use alternative currencies, and it has taken steps to maintain its role as the world’s reserve currency.
The Chinese Yuan will never replace the USD.
Even their own citizens don’t have much faith in their currency. The Chinese government is and has never been transparent. Today it might have value and tomorrow- worthless.
The Democrats have destroyed the USA.
Watch for more bank failings as the ship sinks.
once you are a society that embraces toeiva everything goes down the “atheist” Chinese community party banks this sickness while the “religous” freedom America not only embraces it but encourages these sick people.
It is the beginning of the end of the US, period.
I agree with Abba, the yuan is unlikely to replace the US dollar. We have to understand how the dollar was made the reserve currency of the world. This is because the US was the longest to hold out in its backing of the fiat dollar by gold. However, it all changed in the early 70s when this link albeit only on paper was broken. However up to that time the US has established itself as a world leader and power.
Now, fast forward, no country has gold backing and thus the dollar in theory is just as good, but only in theory, in practice it is still the reserve currency, meaning, it’s accepted by all others as money. Unfortunately with the US going down the drain very very fast, they print and flood the world with their currency that is losing its value with each printed dollar give or take a trillion.
We here have been lucky that japan and later china would gladly accept and accumulate the US dollar, that makes it seem that the dollar is still worth it. However, and it’s inevitable, there will be too many dollars in the entire world, opening a possibility of world wide hyperinflation.
With bank statements shopping tens of millions pouring into Biden family coffers from China we can now understand Biden’s killing this country. Don’t give up your guns.
I don’t know what will be, but for certain, the US is in a decline morally and HaShem adds to moral decline also internal problems.
“Hold on to your Confederate money boys! The south will rise again!”
Get rid of Biden and there goes the Yuan !!!
What folks don’t realize are the implications and how scary this should be to us Americans. As soon as USD loses it’s crown as the global reserve currency, the insatiable US Treasury bond market becomes satiated and that massive federal deficit becomes a monster problem, fast. It’s the fact that the USD is the global reserve currency that the US has the military it does, how it sent man to the moon etc., Those costs led to deficits that was funded, not by Americans, but the rest of the world through issuing debt (I.e. “raising the debt ceiling”). Not only would the US not be able to issue more debt, but all the existing debt will need to be made whole. This will put tremendous pressure on the USD. Ultimately, this will happen; it’s just a matter of time. Right now the yuan is the biggest threat but it could be something else.