4 ms·
China will not only ban American companies or services next, Xi will probably ban the US dollar.
by est 2y ago
China will not only ban American companies or services next, Xi will probably ban the US dollar.
- seanmcdirmid 2y agoThat won’t happen. China would be more angry if the USA all of a sudden didn’t let them participate in treasury auctions.
- est 2y agoYou know there's a rumor saying Trump/Xi would trade Taiwan with US treasury bonds.
- wordofx 2y agoThe funny thing is. China can talk about removing the U.S. dollar and trade when Yen. But they need a stable currency to convert between and so conversion is still done with the U.S. dollar. The U.S. dollar won’t be removed from trade in our life time.
- seanmcdirmid 2y agoChina doesn’t let the RMB float freely, so trade still happens in dollars. Also, the American government buys a lot of treasuries, so it’s easy to save a few billion quickly when you need to, which isn’t really supported by any other currency…saving money by lending it to the USG conversely prevents it from re-entering your own economy and stoking inflation (China isn’t the only country to use the USA like that, Japan buys more treasuries than China usually).