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Sign up with Google Sign up with FacebookQ: will RMB change USD for future?
for survey
no , china is notorious for counterfeiting currency. the rmb will not replace the us dollar. the main issue is trust
No, it has the potential to, but the value of the RMB is too unstable, experiencing periods of rapid inflation which are sometimes unpredictable.
People want currency that will keep its value steady for as long as possible. China is still a growing economy, and is still finding itself, so to speak. Every three or four years the economic situation is different in China, as it adjusts and readjusts itself to extremely rapid economic change.
Maybe in a few decades from now? Maybe a hundred years from now? It is possible. But not today or tomorrow, certainly.
It's possible. US government is still brickering about a possible shutdown.
No, and the main issue is pride. They are too proud (and they should be) of their own country to accept someone else's currency as their own.
I rarely pull-up an ancient, but it was easier than ask new Q:
http://www.zerohedge.com/news/2017-06-01/chinas-next-step-destroy-dollar
"I know, it won't happened .... despite 15-years old graph of Reserve Currency rein/duration clearly showed US$ decadence ... "
China is currently modifying the terms of its oil trade with Saudi Arabia. Specifically, China is working on a deal to pay for Saudi oil using Chinese yuan. This effort poses a direct threat to the security of the dollar.
If this China-Saudi deal happens — yuan for oil — it’s another step closer to the grave for the petrodollar, which has dominated global finance since 1974. You can revisit Jim Rickards article about the Assault on the Dollar, here.
To recap, the petrodollar is weakening because the dollar is losing power as the world’s reserve currency. This is similar to the way pounds sterling gradually fell out of favor during the decline of the British Empire. The decline may take a long time, but what we’re seeing today is another step in the death march of the dollar.
Since 1974, Saudi has accepted payment for almost all of its oil exports — to all countries — in dollars. This is due to an agreement between Saudi and the U.S., dating back to the days of President Nixon.
Beginning about 15 years ago, China ceased being self-sufficient in oil, and began buying Saudi oil. As per all Saudi customers, China had to pay in dollars. Even today, China still pays for Saudi oil in U.S. dollars and not yuan, which perturbs China’s leaders.
Since 2010, China’s total oil imports have nearly doubled. According to Bloomberg News, China has surpassed the U.S. as the world’s largest oil importing nation.
.... continues for fans, only he he
Englteachted:
You're ignoring one glaring fact. Why is China now in this position? Their citizenry have no confidence in the rmb and have been converting to $ and sending it out.
icnif77:
That's wishful thinking from your (western) part .... Just have a look how China-men treat money as a tool .... they would cut few RMB out of their obligations (Contract) with some bogus excuse ... and whatever RMB hits the West ... they are buying you off for chepo ...
Now, when reset happened Chinese (and others) PM bullion stackers will be 'upper-hand' in world dominance on the outside.
'On the outside' means everything us regular humans see and do ....
icnif77:
Read this:
http://www.zerohedge.com/news/2017-06-02/pledged-assets-are-not-there-reuters-goes-china-discovers-ghost-collateral
but, USA and the whole West does the same thing. Chinese must behave the same just to be 'equal' till the Gold backed currency is back.
'New' Chinese proverb:
“His attitude was, ‘Dead pigs aren’t afraid of boiling water’,” the person said, using a Chinese proverb to describe Feng’s attitude: Any attempt to punish him was futile because the loan was already lost.