Quote from: DrBeer on February 18, 2023, 10:13:43 AM

It's very funny to watch the two victims of the Kremlin's propaganda slander "great steps to abandon the dollar." True, as often happens, either without having studied the qualitative facts cited by them, or deliberately distorting the information.
If you dig a little deeper "cross-border payments between Brazil and China in Yuan", then an unexpectedly interesting fact will pop up there. Brazil sells its products to China for .. RMB. Everything is fine. But China sells its goods to Brazil for .. DOLLARS, and only accepts no more than 25% of the payment in .. its RMB

But supporters of pro-Russian propaganda, as it were, "do not know" this most important nuance of "China's fight against the dollar."
I will once again give an example with one event so that everyone understands - China needs dollars! And he needs them because no one will sell technology either for yuan or for fake rubles.... And China will do everything to get dollars. But to all sorts of fools, he will sell his yuan, which China can print in unlimited quantities, for any settlements with its not the smartest "partners". And so, a historical fact that each of you can easily verify.
In 2022, Russia once again decided to "destroy the United States and destroy the dollar." This crazy idea has been tormenting economic and military impotent people since the times of the USSR. So, with pomp, to the whole world, through all the media, a statement was published that the Russian Federation was removing a significant part of the dollar from its gold reserves, and changing it to the yuan. And they say China is also abandoning the dollar. And the real Russian Federation received a huge amount of yuan from China. After that, Russia kept silent about the fight against the dollar. And to questions - how are things with the gold reserves, they somehow modestly lowered their eyes and did not answer questions. And the problem is this:
1. China really sold the Russian Federation a huge amount of yuan. BUT ! But he sold them not for rubles .. That's right, China is not an idiot. They sold Yuan for.. USD

2. After 3-4 months, due to the economic instability of the Chinese market, the yuan depreciated very much.

Let's sum up the results:
1. During this "very cunning operation against the dollar", Russia lost tens of billions of dollars. And continue to lose due to the inflation of the yuan.
2. China has improved its gold reserves at the expense of a huge amount of dollars, which ensure the stability of the economy, which are more stable and which are in demand all over the world.

I agree with all your points, except where your view on China's Yuan depreciation seems like a bad thing. No, it was the opposite. China's economy is export-oriented with a huge manufacturing base. Yuan depreciation helps them to avoid incoming taxes from other countries to protect their domestic manufacturers. It was the basis of protectionism vs currency manipulation and that is where China's long game aimed at the US and the rest of the world to slowly take over the domestic market and make other countries dependent on China. Of course, the power of the USD to facilitate trade around the world and the petrodollar is still there. China has been on US's watchlist for currency manipulation for quite an age. But I fear there is a trend where Russia also want to input their Rubbe into China's market, to slowly mix them into the flow and get a share from it.

popeye95

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