The US Dollar as the world's reserve currency?

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First crack in the facade - from OilPrice:

China Receives First Yuan-Settled LNG Cargo From UAE
China’s CNOOC reported the receipt of the first cargo of liquefied natural gas that the company paid for in Chinese yuan in the latest instance of the ongoing diversification of international energy trade.

The state energy firm, as quoted by China Daily, said it had bought 65,000 tons of LNG from the UAE, noting that settling international trade deals in the local currency was becoming more mature.

International trade in the Chinese currency has been expanding rapidly over the past year, after the West cut Russia out of the SWIFT system, which encouraged the latter to seek alternatives.

To date, almost all the commodities that China buys from Russia are paid for in yuan, Reuters reported earlier this month, as Chinese banks expand their presence in Russia, complete with an alternative payment settlement system dubbed CIPS.

And this little tidbit.  Joe Biden's "sanctions" against Russia have only made Russia stronger and now, they are affecting the use of our Dollar as the world's reserve currency:

International trade in yuan stands at 2.5%, while trade in U.S. dollars accounts for 39.4% of the total and trade in euros accounts for 35.8%, according to data from SWIFT.

Reuters cited one BNP Paribas analyst as forecasting a “snowball effect” for the yuan’s international adoption as more countries join China’s sphere of influence "especially after they've seen what the U.S.-led sanctions against Russia have done."

“This is a very long term development stretching into the coming one or two, even three decades," Chi Lo said, adding "For now, and for the foreseeable next few years, I think the trade using RMB will predominantly be used for commodity and energy trade."

We are being run by idiots with no understanding of how the world works.

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This page contains a single entry by DaveH published on May 23, 2023 7:24 PM.

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