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The Yuan becoming the world reserve currency would mean the Yuan had significant value outside of China... which would mean Chinese citizens could leave the cou

The Yuan becoming the world reserve currency would mean the Yuan had significant value outside of China... which would mean Chinese citizens could leave the country with their wealth, and China doesn't want that. What they want is the hurt the US, so propaganda that scares Americans and even causes financial havoc is valuable.

naasking 3y ago
> which would mean Chinese citizens could leave the country with their wealth You're just assuming that China would let people leave the country with their wealth. Are you forgetting that countries have control over their borders and how finances are handled?
- mixdup 3y ago
  I think that is their point? That China wouldn't let that happen, meaning the Yuan is unlikely to become the world's new reserve currency?
  - naasking 3y ago
    I believe he's actually saying that Yuan becoming a reserve currency means increased risk of capital flight from China. China benefits if everyone outside of China is using the Yuan, and if they mitigate capital flight, there's no downside.
lolinder 3y ago
It sounds like you're already aware of this, but since there was a lot of speculation about the Yuan earlier: Note that while the chart Bloomberg used makes it look like the Yuan is poised to take over from the dollar, it's not. It's gone up... to 2.69%. This is how the currencies stacked up in Q4 2022 according to the IMF[0]: * the US dollar (58.36%) * the Euro (20.47%) * the Yen (5.51%) * the Pound (4.95%) * the sum of all currencies not in the top 8 (3.45%) * the Yuan/Renmibi (2.69%) * the Canadian dollar (2.38%) * the Australian dollar (1.96%) * the Swiss franc (0.26%) So it's not that the Yuan is becoming the world reserve currency, it's that countries are avoiding relying on a single reserve currency. The lesson from the Ukraine sanctions wasn't to avoid the dollar, it was that relying too much on any outside country's currency puts your sovereignty at risk, so they're diversifying. If you look at the chart in the link below, the gains from the dollar's loss are spread out pretty evenly. [0] https://data.imf.org/?sk=c22e624f-ce09-4c9e-a70b-647defa52159&hide_uv=1 https://data.imf.org/?sk=c22e624f-ce09-4c9e-a70b-647defa5215...
- postdb 3y ago
  The figure is clear. There is NOTHING even comes close to replace $ in terms of volume. Remeber, also took US Dollar a long time to replace the Pound as the reserve currency. Whenever country like Japan stops using dollar to settle oil purchase, it is another step. With currently development around the multi-polar world, it is likely not one single currency, rather several regional block reserve currencies will arise to replace the Dollar.
kwere 3y ago
Digital yuan looks like the tool to control capital circulation to the cent. Good for controlling its citizen but not enticing for other countries/people.

naasking 3y ago

> which would mean Chinese citizens could leave the country with their wealth You're just assuming that China would let people leave the country with their wealth. Are you forgetting that countries have control over their borders and how finances are handled?

mixdup 3y ago
I think that is their point? That China wouldn't let that happen, meaning the Yuan is unlikely to become the world's new reserve currency?
- naasking 3y ago
  I believe he's actually saying that Yuan becoming a reserve currency means increased risk of capital flight from China. China benefits if everyone outside of China is using the Yuan, and if they mitigate capital flight, there's no downside.

lolinder 3y ago

It sounds like you're already aware of this, but since there was a lot of speculation about the Yuan earlier: Note that while the chart Bloomberg used makes it look like the Yuan is poised to take over from the dollar, it's not. It's gone up... to 2.69%. This is how the currencies stacked up in Q4 2022 according to the IMF[0]: * the US dollar (58.36%) * the Euro (20.47%) * the Yen (5.51%) * the Pound (4.95%) * the sum of all currencies not in the top 8 (3.45%) * the Yuan/Renmibi (2.69%) * the Canadian dollar (2.38%) * the Australian dollar (1.96%) * the Swiss franc (0.26%) So it's not that the Yuan is becoming the world reserve currency, it's that countries are avoiding relying on a single reserve currency. The lesson from the Ukraine sanctions wasn't to avoid the dollar, it was that relying too much on any outside country's currency puts your sovereignty at risk, so they're diversifying. If you look at the chart in the link below, the gains from the dollar's loss are spread out pretty evenly. [0] https://data.imf.org/?sk=c22e624f-ce09-4c9e-a70b-647defa52159&hide_uv=1 https://data.imf.org/?sk=c22e624f-ce09-4c9e-a70b-647defa5215...

postdb 3y ago
The figure is clear. There is NOTHING even comes close to replace $ in terms of volume. Remeber, also took US Dollar a long time to replace the Pound as the reserve currency. Whenever country like Japan stops using dollar to settle oil purchase, it is another step. With currently development around the multi-polar world, it is likely not one single currency, rather several regional block reserve currencies will arise to replace the Dollar.

kwere 3y ago

Digital yuan looks like the tool to control capital circulation to the cent. Good for controlling its citizen but not enticing for other countries/people.