China quietly abandons the dollar


The PRC, without unnecessary information noise, is beginning to gradually abandon the American currency in its foreign trade settlements and in the service sector. Against the background of all sorts of problems with the reserve currency, this can bring big problems to the dollar in the future. This is reported by the resource Zero Hedge.


The percentage of payments and receipts in renminbi made by banking institutions for their clients rose to 37 percent in June, up from 19 percent in 2018, according to data from the China Monetary Authority. According to Bloomberg analysts, the use of the dollar has decreased by 20 percent - from 70 to 56%.

Jack Ma's decision to re-register his Ant Group on the Shanghai and Hong Kong stock exchanges instead of the United States can also lead to large-scale shifts in capital markets - in China, it can be estimated at about $ 200 billion. There is also a process of leaving a number of Chinese companies registered in the United States to the PRC.

In this regard, Bloomberg expert Ye Xie wonders what Beijing can do with its treasury assets, which amount to about $ 1,1 trillion. In his opinion, the US currency will face hard times:

A near-perfect storm has now hit the dollar, with declining real yields, the inability of the authorities in Washington to control the situation with COVID-19, and the threat of a double deficit.

- emphasizes Ye Xie.
  • Photos used: https://pixabay.com/
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  1. Dmitry S. Offline Dmitry S.
    Dmitry S. (Dmitry Sanin) 31 July 2020 10: 20
    -2
    That's why Ali is paid in dollars and nothing else, if only not in Russian stores to buy ... They refuse, yeah ...
  2. Vladimir Tuzakov (Vladimir Tuzakov) 31 July 2020 10: 26
    +3
    The main thing is the crisis contraction of economies and a significant decline in the turnover of money, as a result, a large number of dollars will become superfluous on the market, which at the second stage will raise prices and depreciate money. Therefore, not only the dollar will collapse, the overproduction of paper money will appear in all its glory ... Gold cannot be printed, it has to be mined with costs that correlate with the state of the economy ...
  3. gorenina91 Offline gorenina91
    gorenina91 (Irina) 31 July 2020 10: 36
    -4
    The PRC, without unnecessary information noise, begins to gradually abandon the American currency in its external trade settlements and in the service sector

    - And what did China offer in terms of its foreign trade settlements ... instead of dollars ???

    The percentage of payments and receipts in renminbi made by banking institutions for their clients rose to 37 percent in June, up from 19 percent in 2018, according to data from the China Monetary Authority.

    -Well, China can offer its "internal clients" anything ... - even candy wrappers ...

    on the stock exchanges of Shanghai and Hong Kong instead of the United States - in China, it can be estimated at about $ 200 billion.

    - Just about ... - The same Shanghai and Hong Kong will never subscribe to the wrapper yuan ...
    - The only thing that China can do ... is ... - to finally twist Russia's arms and force Russia to accept payments in yuan ... and ... and by force of the "closest partner" China can force Russia to sell a part of the Russian gold for yuan; and at the same time pay for the supplied Russian gas and oil in yuan; and then generally enter all settlements with Russia only in yuan ...
    - Personally, I will not be at all surprised when I find out that China has already launched such a fraudulent mechanism in the sphere of relations with Russia ... - It's just that for the time being something like that is simply "not being voiced" ...
    1. King3214 Offline King3214
      King3214 (Sergius) 31 July 2020 11: 33
      +6
      And how are Chinese "candy wrappers" worse than American "candy wrappers"?
      I hope you won't argue that the US dollar is backed by anything?
      1. gorenina91 Offline gorenina91
        gorenina91 (Irina) 31 July 2020 12: 56
        0
        And how are Chinese "candy wrappers" worse than American "candy wrappers"?
        I hope you won't argue that the US dollar is backed by anything?

        - Are you ... - seriously asking ???
        - That's when the children of Russian oligarchs and all the closest relatives of Russian oligarchs will all rush to live in ... in ... in ... in China ... - then yours, Mr. King3214 (Sergiy) ... - like questions and there may still be a place ... In the meantime, you just do_tit_turn ...
        1. King3214 Offline King3214
          King3214 (Sergius) 31 July 2020 16: 14
          +1
          How is the US dollar secured?
          1. Oyo Sarkazmi Offline Oyo Sarkazmi
            Oyo Sarkazmi (Oyo Sarkazmi) 31 July 2020 16: 29
            +4
            Quote: King3214
            How is the US dollar secured?

            By faith! By faith Irina into the immortality of the dollar. Although the dollar turned to zero 5 times. True, in the century before last, when the United States was the backyard of civilization, a dump for all kinds of trash.
  4. Alexzn Offline Alexzn
    Alexzn (Alexander) 31 July 2020 11: 22
    +2
    Quote: Vladimir Tuzakov
    The main thing is the crisis contraction of economies and a significant decline in the turnover of money, as a result, a large number of dollars will become superfluous on the market, which at the second stage will raise prices and depreciate money. Therefore, not only the dollar will collapse, the overproduction of paper money will appear in all its glory ... Gold cannot be printed, it has to be mined with costs that correlate with the state of the economy ...

    You cannot print oil, ore, gas, wood ... If there is a lot of money, the price for them will fall, the discount rate will decrease, mortgages ... which will stimulate construction and production. Read Keynes' General Theory of Employment, Interest, and Money.
    1. Bakht Online Bakht
      Bakht (Bakhtiyar) 31 July 2020 12: 44
      +1
      Good advice ... So what is Keynes's theory? In general, if not difficult.
    2. Vladimir Tuzakov (Vladimir Tuzakov) 1 August 2020 15: 09
      +1
      The general theory does not work in extreme cases, crises of centuries (1929), today, it seems, will be remembered as the crisis of 2020 (beginning). The fact is that oil and gas and timber will become useless, there will be no buyer ... Construction will freeze, and there is also no one to build. C. Keynes wrote when there was no force majeure, and he was already here ...
  5. 123 Offline 123
    123 (123) 31 July 2020 11: 44
    +4
    Jack Ma's decision to re-register his Ant Group on the Shanghai and Hong Kong stock exchanges instead of the United States can also lead to large-scale shifts in capital markets - in China, it can be estimated at about $ 200 billion. There is also a process of leaving a number of Chinese companies registered in the United States to the PRC.

    And not only Chinese, Russian companies also started to go home. The entire trading system, inflated capitalization, is held by the Fed's financial influences. The economy is crumbling and capitalization is growing. laughing As soon as the Fed's money poured into the exchange in an endless stream, Citizen Musk's affairs went up. Approximately 14 billion free freshly printed bourgeois money a day. Here is such a "coincidence".

    Tesla's capitalization is $ 254,2 billion. It has grown in five days by an amount equal to the combined value of securities of the three leading American automakers - General Motors, Ford Motor and Fiat Chrysler

    Apparently, "your son of a bitch" is more valuable than some Ford. To whom war crisis, to whom the mother is dear. He was somewhere in the top thirty of the rating of the rich, now he is in the top five.
  6. Sergey Latyshev Offline Sergey Latyshev
    Sergey Latyshev (Serge) 31 July 2020 13: 16
    -4
    Let's see, let's see the Bucks rate .. It should collapse?
    73,90 + 0,73, Grew from 70 to 3 rubles ...

    Maybe it's not about bucks or yuan? What about the Chinese experts?
    1. Alexzn Offline Alexzn
      Alexzn (Alexander) 31 July 2020 15: 32
      +2
      You are not looking there. The volume of trade between China and the United States fell by 20% in the second quarter, and here's a slight decrease in settlements in dollars.
  7. Alexzn Offline Alexzn
    Alexzn (Alexander) 31 July 2020 15: 21
    0
    Quote: AlexZN
    Quote: Vladimir Tuzakov
    The main thing is the crisis contraction of economies and a significant decline in the turnover of money, as a result, a large number of dollars will become superfluous on the market, which at the second stage will raise prices and depreciate money. Therefore, not only the dollar will collapse, the overproduction of paper money will appear in all its glory ... Gold cannot be printed, it has to be mined with costs that correlate with the state of the economy ...

    You cannot print oil, ore, gas, wood ... If there is a lot of money, the price for them will fall, the discount rate will decrease, mortgages ... which will stimulate construction and production. Read Keynes' General Theory of Employment, Interest, and Money.

    https://socioline.ru/files/5/316/keyns.pdf

    The first two chapters are several pages long. In short, it won't work.
  8. gorenina91 Offline gorenina91
    gorenina91 (Irina) 31 July 2020 16: 42
    -2
    How is the US dollar secured?

    - How do I know that .. ??? - Here Keynes's theory was mentioned in vain ... - Personally, I can only express my own opinion ...
    - Russia is not being ruined by "pegging to the dollar" (Russia can very easily survive this and get away from this in the future, if it wants to); and it is destroying Russia (and can even kill it) ... - this is a "tie" to China ...
    - This is the "tie" to China and is a mortal danger for Russia ...
    - And the worst thing for Russia today is that the current leadership of Russia is not doing anything to break this tie ... - Not only that ... - the current Russian leadership is doing everything to ensure that Russia itself tightens itself as tightly as possible around its neck this chinese loop binding ...
    1. _AMUHb_ Offline _AMUHb_
      _AMUHb_ (_AMUHb_) 31 July 2020 23: 12
      +2
      Don't get excited, Irina !!! On Damansky, after the missile strike, they counted from the belts' badges how many there were Chinese ... perhaps innuendo ... but we will count it again, if necessary ... the fact is that the dismantling of n. financial systems (note - at the very least, working, not without distortions, fraud and theft) costs money and ... not the fact that the other will be better ("little people" have not yet invented something new).
    2. Vladimir Tuzakov (Vladimir Tuzakov) 1 August 2020 15: 13
      -1
      Why are you so excited about the United States, justifying the dollar, driving wedges under China, it is the United States who blames China for its troubles, and you are also for the company? ...
  9. The comment was deleted.
  10. Alexzn Offline Alexzn
    Alexzn (Alexander) 1 August 2020 15: 58
    0
    Quote: Vladimir Tuzakov
    The general theory does not work in extreme scenarios, crises of centuries (1929), today it seems they will remember how the crisis of 2020. (- beginning.) The fact is that oil and gas and wood will become useless, there will be no buyer. ..Construction will freeze, there is also no one to build. C. Keynes wrote when there was no force majeure, and he was already here ...

    Keynes, he is J.M., he wrote based on an analysis of the 1929-33 crisis. Do not confuse a crisis caused by economic reasons and a crisis due to external causes.
  11. Citizen Mѣshkov (Sergѣi) 2 August 2020 02: 34
    +1
    That's right - money loves silence.
    But we do not know what plan the leaders of Russia and China have. Maybe it was intended.
  12. Blast Offline Blast
    Blast (Vladimir) 3 August 2020 10: 05
    +1
    Yes, it looks like the end of the dollar and the entire financial system based on it is coming ... The Fed is already pumping a trillion a month straight into the financial sector. This is the home stretch and it won't be long ...
  13. Oleg Shlyapin Offline Oleg Shlyapin
    Oleg Shlyapin (oleg shlyapin) 4 August 2020 15: 23
    -3
    Cool. Another fable from an alternate reality wassat