There is little doubt that the US Treasury has been politicized and that the unprecedented printing of trillions of paper dollars, non productive spending and the resulting inflation has disconcerted central bankers around the world
. However its a stretch to argue that these bankers will be anxious to substitute yuan for dollars as a mechanism of trade or as their reserves. The value of the yuan is controlled by China’s central bank which is directly controlled by the Communist Party Politburo. They make policy that allocates capital and political decisions, including war that affects the value of the yuan. Would you,after all things are considered put your country’s economic well being in the hands of the Chinese Communist party by holding yuan as a big percentage of your reserve currency?
The arbitrary use of the Western monetary system as a means of punishment is the main turnaway.
What is the point of having dollar denominated assets if they can be confiscated on a whim?
I agree that the Yuan is not the “prettiest girl in the room”, but our policies and making her look better.
I think this is a move by MBS to flip off Biden. He clearly is not a fan.
If this is not getting any attention in DC, then those guys are not really paying attention.
But, money is about efficiency. It will go where it is treated best.
- China has two currencies, which most people do not know; they are not convertible EXCEPT with CCP consent through their official central bank, and their internal one is thus "protected" however they want and prevents, very effectively, enforcement of ANYTHING in monetary terms against any Chinese firm or other entity.
That is why they'll never replace even the Euro; notice that Russia's deal with China to sell oil and gas settles in Euros. That would make no sense; everyone would want it to settle in Yuan, except..... it can't for that reason.