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Isn't the Chinese Yuan pegged to the US dollar though? Therefore isn't it just a derivative of the US dollar? It's been clear for a while that China wants to i
by CTDOCodebases 3y ago
Isn't the Chinese Yuan pegged to the US dollar though? Therefore isn't it just a derivative of the US dollar?
It's been clear for a while that China wants to increase the dominance of it's currency. The belt and road initiative and the digital renminbi is part of that.
The swift sanctions were an accelerant, not a catalyst of de-dollarization. It was no coincidence that Russia had substantial gold reserves at the time of the invasion.
- spacebanana7 3y agoGiven that the Chinese economy is similar in size to the US economy, one could even say the USD is pegged to the Yuan with enforcement by the PBOC.
- aeternum 3y agoYes but a peg alone doesn't mean that one currency can be on the way out. For example the pound was famously pegged right up until the day it wasn't: https://www.investopedia.com/ask/answers/08/george-soros-bank-of-england.asp https://www.investopedia.com/ask/answers/08/george-soros-ban... The relative strength of the two economies is really what matters, and sanctions + tariffs are a double-edged sword, the deeper you impale other countries, the deeper you impale yourself.
- dustypotato 3y agoDoesn't seem pegged since there's a lot of fluctuation in the [1]chart [1]https://www.finanzen.ch/devisen/us_dollar-renminbi_yuan-kurs https://www.finanzen.ch/devisen/us_dollar-renminbi_yuan-kurs
- CTDOCodebases 3y agoYeah apparently that ended in 2005. Now it’s pegged to a basket of currencies like the British pound was.