4 ms·

Wondering what will replace it, maybe the Brics coin a basket of currencies and commodities. A bit like Keynes Bancor concept if i'm not mistaken time will tell

Wondering what will replace it, maybe the Brics coin a basket of currencies and commodities. A bit like Keynes Bancor concept if i'm not mistaken time will tell what sort of currencies the Russians and Chinese will introduce for BRICS, SCO and BRI nations.

ur-whale 4y ago
The Chinese Renminbi (Yuan) is a good candidate to quickly get on par with the USD. If they manage it properly that is, as in: not print mountains of it, and not using it to enforce their political aims. They're currently actively busy making the Renminbi reserve and default trading currency in much of Asia. And, as a last resort, there's always Bitcoin and gold, although, as Ghana will discover (unless they make the mistake of using a 3rd-party custodian) gold is very tricky to move about.
- pjc50 4y ago
  > not using it to enforce their political aims. Ah yes, the CCP, famously known for not enforcing political aims.
- meowfly 4y ago
  RMB is a terrible candidate for a reserve currency. If you are concerned about the US meddling with their currency, you will not pick a historically manipulated currency like the RMB. Moreover, in China transactions over 8k USD have to be reported and there is a 50k USD currency exchange limit. The governments managing of outflows hardly gives confidence that the currency is one people want to hold.
- dragonelite 4y ago
  Asia does seem to move more and more into the renminbi sphere. It would makes sense if China starts exporting more RMB over the next couple of years to facilitate trade in the region and get the USD financial hooks out of the region. For now i'm mostly waiting on South china sea code of conduct being finalised. Seems Vietnam is now willing to cooperate with China on their South China sea issues and resources/border disputes. You also have Xi next month meeting Arab leaders in Saudi Arabia, a lot of people are expecting a PetroYuan announcement or at the very least the foundation of such an agreement. I think after those two events are handled and closed, China should be in an excellent position to become Asia's major energy hub. They can get Russian, Qatari, Central Asian stans and Saudi energy products without having to use Western financial institutions or services. I think the Russian and Arab leaders want a bigger share of the Chinese bonds and financial markets so they can grow their RMB reserves like they are already doing with their dollars. Ghana going with gold for energy imports seems smart for now but yeah moving gold isn't easy, also verifying the gold is also not easy. That's why i think BRICS+, SCO and BRI nations will create a block chain with a digital currency(Central Banks digital Currency) backed by a basket of currencies and commodities to facilitate import and export and government to government financial transactions.

ur-whale 4y ago

The Chinese Renminbi (Yuan) is a good candidate to quickly get on par with the USD. If they manage it properly that is, as in: not print mountains of it, and not using it to enforce their political aims. They're currently actively busy making the Renminbi reserve and default trading currency in much of Asia. And, as a last resort, there's always Bitcoin and gold, although, as Ghana will discover (unless they make the mistake of using a 3rd-party custodian) gold is very tricky to move about.

pjc50 4y ago
> not using it to enforce their political aims. Ah yes, the CCP, famously known for not enforcing political aims.
meowfly 4y ago
RMB is a terrible candidate for a reserve currency. If you are concerned about the US meddling with their currency, you will not pick a historically manipulated currency like the RMB. Moreover, in China transactions over 8k USD have to be reported and there is a 50k USD currency exchange limit. The governments managing of outflows hardly gives confidence that the currency is one people want to hold.
dragonelite 4y ago
Asia does seem to move more and more into the renminbi sphere. It would makes sense if China starts exporting more RMB over the next couple of years to facilitate trade in the region and get the USD financial hooks out of the region. For now i'm mostly waiting on South china sea code of conduct being finalised. Seems Vietnam is now willing to cooperate with China on their South China sea issues and resources/border disputes. You also have Xi next month meeting Arab leaders in Saudi Arabia, a lot of people are expecting a PetroYuan announcement or at the very least the foundation of such an agreement. I think after those two events are handled and closed, China should be in an excellent position to become Asia's major energy hub. They can get Russian, Qatari, Central Asian stans and Saudi energy products without having to use Western financial institutions or services. I think the Russian and Arab leaders want a bigger share of the Chinese bonds and financial markets so they can grow their RMB reserves like they are already doing with their dollars. Ghana going with gold for energy imports seems smart for now but yeah moving gold isn't easy, also verifying the gold is also not easy. That's why i think BRICS+, SCO and BRI nations will create a block chain with a digital currency(Central Banks digital Currency) backed by a basket of currencies and commodities to facilitate import and export and government to government financial transactions.