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China would absolutely not want to have a reserve currency. Their export economy would be destroyed overnight.
by psychlops 2y ago
China 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.