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Elsewhere3000 t1_jeaep0i wrote

Reply to comment by Bring_Bring_Duh_Ello in Brazil, China strike trade deal agreement to ditch US dollar by loggiews

Over the past 2 weeks:

  1. Saudi is considering using Yuan for petrol. USD is backed by oil. Not gold.
  2. China and France complete the first transaction for LNG (gas) using the Yuan with no intermediary.
  3. Russia considers using the Yuan as a reserve currency.
  4. Saudi partners with China to build oil refineries for 83.7 billion Yuan ($12 billion USD).
  5. China and Brazil which we are talking about here.

The percentage of global USD reserves is down from %72 in 1999 to %59 today.

It’s happening. Slowly but it’s happening.

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Bring_Bring_Duh_Ello t1_jeag7yb wrote

  1. To be clear the yuan is not even among the top 4 reserve currencies which are USD, Euro, Pound and Swiss franc.

  2. Government transparency - how many people truly understand the dynamics behind the Yuan? Maybe 35 members on the China State Council (if that). The lack of transparency will be a major drawback against the Yaun.

  3. As Chinese middle class expands more Chinese are likely to spend in the worlds number one economy, or the US. Which will in turn result in US companies selling more to China. These demographics and economic factors only add, not subtract, from the strength of the USD.

  4. The USD stands on solid bedrock of the 310M population whereas the Yuan is spread across 1.3B Chinese who are not only aging as a population but will begin to demand more rights. Social unrest and political pressure are coming in the mid to near term

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