4 ms·
De-dollarization for the Chinese is purely because of geopolitical and strategic reasons (rendering bank level SWIFT sanctions ineffective). Whether trade is do
by KRAKRISMOTT 3y ago
De-dollarization for the Chinese is purely because of geopolitical and strategic reasons (rendering bank level SWIFT sanctions ineffective). Whether trade is done/settled in USD or yuan doesn't really affect them as they are an export economy with a peg to the USD. Switching to a currency swap system with specific countries doesn't mean the efficient market hypothesis stops holding. The underlying value of the swaps can still contain a USD peg.