[Alberta's Child]

The fact that we see so many statements here with some variation that this is "not good" for the U.S. is an indication of just how little most of us know about international finance.

By eliminating the U.S. dollar from transactions with third-party nations like Australia and Brazil, China is doing exactly what the U.S. has been asking them to do for several years now. One of the long-term criticisms of China among posters right here on this website has been China's policy of deliberately undervaluing its currency by pegging it to the U.S. dollar at a fixed (artificially low) rate.

Guess what, folks ... by eliminating the U.S. dollar from their third-party transactions, China effectively isn't pegging its currency to ours anymore.

[autumnraine]

I hope you are right.