Quote from: TrevorS on February 11, 2020, 04:40:13 PM

In general, a similar scenario is quite possible. But only if one of the parties, for example China, wants to free its economy from dollar dependence by switching to its own currency only in another form of collateral.

Even though China is intensively conducting its Yuanization program, China is doing it very carefully because the majority of China's foreign exchange reserves are still in the form of dollars, besides that 58% of global foreign exchange reserves are still in dollars. In this position, the dollar is still mighty to become a monetary stabilizer in China and almost all countries in the world. Dollar ownership can serve as a shield against global economic turmoil and currency devaluation risk.

China might make a total deduction, if:
- It can change all foreign trade in the form of Yuan. Despite the fact that China keeps the Yuan exchange rate weak against the dollar, yen and US dollar in order to win the trade competition, so the price of goods from China remains cheap. While payments in dollars are certainly more profitable for Chinese exporters.
- If you have replaced the foreign exchange reserves in the form of other currencies or gold. Despite the fact, China also often purchases Government Securities in dollars with the aim of having an influence on other countries' economies.