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I suspect many countries would prefer a Chinese reserve currency to a European one, due to past bad experiences of being ruled by Europeans. But even on a pure
by dave4420 2y ago
I suspect many countries would prefer a Chinese reserve currency to a European one, due to past bad experiences of being ruled by Europeans.
But even on a purely economic level… does the Eurozone even have a larger economy than China?
I can see countries moving away from USD, but I don’t see them coalescing around a single alternative.
- FreebasingLLMs 2y ago[dead]
- magneticstain 2y agoI would suspect that some countries would definitely go to China due to the more sizable economy. But a large number of others - especially those with more democratic idealogies - would go with the Euro.
- malcolmgreaves 2y agoThe RMB is a terrible reserve currency since the CCP can just arbitrarily change its value by decree.
- dave4420 2y agoSure — but if the CCP decided it wanted the benefits of owning a reserve currency, it could change that. Then suddenly it looks more attractive.
- psychlops 2y agoChina would absolutely not want to have a reserve currency. Their export economy would be destroyed overnight.
- kube-system 2y agoDoesn't China currently address this by having two currencies, with one dedicated to offshore use?
- psychlops 2y agoPerhaps? I can't imagine that either could take the loss of production capacity the way the US has. The global inflation of product prices alone is staggering to consider.
- ianburrell 2y agoChina only has one currency, the renminbi or yuan. There are capital controls so it isn't fully traded on international markets. It has only been internationally traded since 2015, and I think there were various schemes before that.
- deleted 2y ago[deleted]
- kube-system 2y agoAren't CNY and CNH effectively two different currencies, despite having the same name and being somewhat linked?
- ianburrell 2y agoI hadn't noticed that. I guess that is how they manage the capital controls. It sounds like they are supposed to be the same internally but that there is a spread. That seems like it could be a weakness.