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Why are you asking for my opinion when other sovereign countries are the ones issuing yuan bonds and migrating away from the dollar?
by nine_zeros 1y ago
Why are you asking for my opinion when other sovereign countries are the ones issuing yuan bonds and migrating away from the dollar?
- refurb 1y agoIssuing bonds and “moving away” aren’t the same as becoming the world’s reserve currency. People are getting confused. It’s like saying because I shopped at Walmart last week, Walmart will become the sole supplier of everything I buy.
- nine_zeros 1y agoA lot of transactions moving away does not mean moving away entirely to a sole new supplier. Even a 10% decline in dollar usage is "moving away". Bit by bit, the rest of the world starts using alternatives. That's how the British pound went down from global reserve to 4% of reserves. It took 70 years for this gradual decline.
- refurb 1y agoYou started with transactions then moved to reserves. Tell me the missing piece.
- nine_zeros 1y agoThe missing piece is that transactions lead to reserves.
- refurb 1y agoNo they don't. A business selling products or services and receiving a foreign currency, doesn't lead to higher foreign reserves for the country. Care to try again?
- nine_zeros 1y agoI don't want to try again for someone who doesn't want to research for themselves how foreign countries accumulate reserves. Hint, you literally explained it.