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The question boils down to, do people trust China (and its renminbi) or the US (and its dollar) more? Even if China is greatly involved in commodities, or has a
by JMTQp8lwXL 6y ago
The question boils down to, do people trust China (and its renminbi) or the US (and its dollar) more? Even if China is greatly involved in commodities, or has an ever-growing GDP, the political forces concerning the administration of the currency are a factor.
- sroussey 6y agoTrade between China and Russia has gone from 90% USD to 90% Yuan. The question is, how many bilateral agreements does it take to make it fait accompli?
- Iolaum 6y agoEnough that it 'd consist a sizable amount of the trading volume. Then businesses will bother to figure out the FX costs associated with trading in Yuan. And then trading in Yuan has to be more profitable than trading in USD. Don't know enough to evaluate possible outcomes for each step.