Move over, U.S. dollar. China wants to make the yuan the global currency. © Kim Kyung Hoon/Reuters
Washington Post: Move over, U.S. dollar. China wants to make the yuan the global currency.
Newsan, one of Argentina’s biggest home appliance retailers, imports most of its products from China. Until now, it was paying for fridges, TVs and parts in U.S. dollars, the currency of international trade.
But last month, as part of a bid to relieve pressure on Argentina’s dollar-strapped economy, Newsan started doing something new: settling deals in Chinese yuan.
“The yuan is becoming increasingly relevant as currency for international trade,” said Luis Galli, chief executive of Newsan. “But beggars don’t get to choose. This deal was born out of necessity.”
Argentina’s economy is — again — in crisis. A drought has wiped out key agricultural exports, pushing the economy, already grappling with skyrocketing inflation, to the brink of recession.
Read more ....
WNU Editor: The US and its uncontrollable urge to pile on debt is only going to help China achieve its goal sooner rather than later .... Biden and congressional leaders to meet in debt ceiling showdown as McCarthy pushes for faster deal (AP).
4 comments:
Build Back Better is working!
Yes, the US. is largely at fault but China is still way too reliant on essential imports and the yuan is even weaker than the dollar. It's a temporary shelter from the storm.
It’s not even close to replacing the dollar. The yuan is a highly fluctuating currency the Chinese even got in trouble for doing so. The dollar isn’t going anywhere
Hope you are right. But there are many varied chances in the world.
As a example of smart people being wrong. :
Remember Admiral Leahy. A very respected individual of WWII.
He said....
"That is the biggest fool thing we have ever done. The bomb will never go off, and I speak as an expert in explosives.''
He was talking about the atomic bomb.
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