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> Strengthening CIPS with this move surely weakens the dollar's reserve status globally. No it doesn't. That's a fantasy held primarily by people that dislike

> Strengthening CIPS with this move surely weakens the dollar's reserve status globally. No it doesn't. That's a fantasy held primarily by people that dislike the US, the present world order, and want it all rearranged to their bias. You can instantly spot a person's bias by how quickly they whip out the premise that the USD global reserve is going to be damaged by xyz (it seems to practically be a fetish for some people). Typically there's no actual argument presented, just a statement that of course xyz will happen now, finally. You'll see that throughout the Russia war threads (here or elsewhere). Throughout my lifetime I've seen it repeatedly claimed: well of course, now the USD global reserve standard will begin to decline (the Euro was supposed to severely damage it; whoops). The vast majority of the world isn't going to have a strong interest in holding Yuan and that'll define the global reserve status. There are no other major competitors to the USD other than potentially the Yuan, and it's not a serious competitor because of the nature of the CCP. As it is, the Yuan has a smaller presence globally than the Yen and that says a lot given the size of China's economy (ie there's no trust in China and they haven't made much progress in that respect over the past decade).

eleitl 5y ago
Dedollarization in global settlements is empirically a historic trend though. At least until 2020.
csomar 5y ago
> says a lot given the size of China's economy (ie there's no trust in China and they haven't made much progress in that respect over the past decade). Yeah. I really wonder about this: The Chinese are doing everything possible to undermine their Yuan as a reserve currency. You can't freely move money. You can't open a Yuan denominated bank account easily. Their cards are hard to get/use (although some places are opening up). They didn't make a Stripe/Processing equivalent and open it to the rest of the world. You can't incorporate a Chinese company online and opening a Chinese company is a ridiculous process. English is still not widely used. And has anybody checked the ICBC online-banking solution? These guys are still living in the 90s? Most people think China is advanced in payments because they have wepay. But they seem to have just that and everything else (under State control) is still in the Soviet Era.
- JumpCrisscross 5y ago
  > Chinese are doing everything possible to undermine their Yuan as a reserve currency There is a decent argument for dollar hegemony hurting America [1]. China has no need to pursue reserve status for the yuan. [1] https://www.wsj.com/amp/articles/how-the-reserve-dollar-harms-america-1416527644 https://www.wsj.com/amp/articles/how-the-reserve-dollar-harm...
TMWNN 5y ago
>No it doesn't. That's a fantasy held primarily by people that dislike the US, the present world order, and want it all rearranged to their bias. You can instantly spot a person's bias by how quickly they whip out the premise that the USD global reserve is going to be damaged by xyz (it seems to practically be a fetish for some people). My personal tipoff is how quickly someone mentions "petrodollar". No, idiot, countries don't use the US dollar to buy and sell oil because the US military points a gun at them. They use the dollar because they, their trading partners, and everyone else prefer having dollars to rubles, renminbi, or bolivars.

eleitl 5y ago

Dedollarization in global settlements is empirically a historic trend though. At least until 2020.

csomar 5y ago

> says a lot given the size of China's economy (ie there's no trust in China and they haven't made much progress in that respect over the past decade). Yeah. I really wonder about this: The Chinese are doing everything possible to undermine their Yuan as a reserve currency. You can't freely move money. You can't open a Yuan denominated bank account easily. Their cards are hard to get/use (although some places are opening up). They didn't make a Stripe/Processing equivalent and open it to the rest of the world. You can't incorporate a Chinese company online and opening a Chinese company is a ridiculous process. English is still not widely used. And has anybody checked the ICBC online-banking solution? These guys are still living in the 90s? Most people think China is advanced in payments because they have wepay. But they seem to have just that and everything else (under State control) is still in the Soviet Era.

JumpCrisscross 5y ago
> Chinese are doing everything possible to undermine their Yuan as a reserve currency There is a decent argument for dollar hegemony hurting America [1]. China has no need to pursue reserve status for the yuan. [1] https://www.wsj.com/amp/articles/how-the-reserve-dollar-harms-america-1416527644 https://www.wsj.com/amp/articles/how-the-reserve-dollar-harm...

TMWNN 5y ago

>No it doesn't. That's a fantasy held primarily by people that dislike the US, the present world order, and want it all rearranged to their bias. You can instantly spot a person's bias by how quickly they whip out the premise that the USD global reserve is going to be damaged by xyz (it seems to practically be a fetish for some people). My personal tipoff is how quickly someone mentions "petrodollar". No, idiot, countries don't use the US dollar to buy and sell oil because the US military points a gun at them. They use the dollar because they, their trading partners, and everyone else prefer having dollars to rubles, renminbi, or bolivars.