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My suggestion you stress on 'chief'.
Dedollarisation refers to countries reducing reliance on the U.S. dollar as a reserve currency, medium of exchange or as a unit of account.[1]
indc says
Trollhole says
What a load of crap.
https://www.rt.com/news/582934-blinken-post-cold-war-order/?ysclid=lmjhnviht7774842269
The Old World Order is over – Blinken
What another load of crap.
Do you know the meaning of "chief"?
Not to mention that article doesn't prove the dollar is toast as the world's reserve currency.
why does the world need to sell their merchandise for paper that is just printed out of thin air?
why does the world need a reserve currency? why does the world need to use a currency that only 1 country can print without limit? why does the world need to sell their merchandise for paper that is just printed out of thin air?
komputodo says
why does the world need to sell their merchandise for paper that is just printed out of thin air?
Why do you sell your labor for paper that is printed out of 'thin air'? Why do your creditors accept that paper? Why does the dude running a hit dog stand sell his merchandise for it?
Why even ask this question?
There has to be a medium of exchange if there is no bartering. So what currency is used ?
If an importer in Brazil wants to buy a container of Chinese made laptop computers, then how do they pay for them based on what they are worth to both the seller and buyer ? Is it in Chinese currency or Brazilian currency ?
In this instance, the chinese central bank would set the currency exchange rate for the Brazilian Real v. Chinese yuan. Now the Brazilian can pay for the laptops with his domestic currency. Therefore cutting the us dollar out of the deal.
I guess having everything priced in US dollars is just convenient as far as processing import and export transactions. It consolidates instead of having many currency exchanges (Real to Yuan).
yeah it's convenient until you upset the usa and they confiscate your US assets....financial and physical.
Its does not matter as a large majority of the purchases of US Treauries are from non BRICs and US investors.
It may have once been like that but lately the main buyers have been china, saudi arabia...BRICS MEMBERS, and the federal reserve bank as buyer of last resort. Which is kinda funny...the fed create money, then loan it with interest to the usa treasury to sell treasuries back to them.
First of all, this post is about reserve currency, not fiat money.
I guess having everything priced in US dollars is just convenient as far as processing import and export transactions. It consolidates instead of having many currency exchanges (Real to Yuan).
also consider that major holders of USD are countries that are forced to buy oil priced in USD. If they weren't forced by the usa to buy oil with dollars, they probably wouldn't be holding so many.
and a vast majority of those holding the US Treasuries are Japan and other ally countries like Cayman Islands
komputodo says
also consider that major holders of USD are countries that are forced to buy oil priced in USD. If they weren't forced by the usa to buy oil with dollars, they probably wouldn't be holding so many.
yes, but again the BRIC countries are not major holders of US Treasuries
and foreign ownership of US Treasuries is only about $7.4 trillion out of $25 trillion
and a vast majority of those holding the US Treasuries are Japan and other ally countries like Cayman Islands
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Japan's official stash of $1.11 trillion represents 4.4% of the total market, also a record low, while China's $835 billion stash is around 3.4% of the total, the lowest in over 20 years. In contrast, the Federal Reserve holds $5 trillion, or 20% of the overall market.
Doesn't HAVE to be the dollar, technically.
But it will need a deep well of liquidity and a large bond market like uhhh, we have.
allow the Cretin of Kremlin to invest in some Indian companies and at least get some dividends
Eric Holder says
allow the Cretin of Kremlin to invest in some Indian companies and at least get some dividends
They can invest in companies that export to Russia like electronic equipment, machinery, and fruits and vegetables.
https://tradingeconomics.com/india/exports/russia
Yeah, rest of the world are not investor friendly to foreigners like the Anglo-American sphere is.
Even first tier nations like Japan and Germany.
Can Russia buy stocks of Indian companies ? If not owning directly, then buy shares of companies on the stock market in India.
But India does export to Russia as far as electronics, machinery, and agriculture products.
Yes Trollhole, I read it : "New Delhi needs to give approval for larger transactions, and so far it's not doing that for its oil spending. Instead, India has reportedly offered an unconventional solution — reinvesting rupees into its own economy. "Our Indian partners have assured us that they will suggest promising areas where they could be invested,” Lavrov said."
This is a similar arrangement to China "investing" in Central America and Africa.
2) forcing Russia to do with its rupees what it doesn't want to do just proves why the rupee is never going to be a reserve currency.
But I think the way India's economy is growing, I don't think it will be bad investments for Russia.
.
Economic crime and fraud continue to be a significant challenge for Indian companies, with 66% of organisations experiencing at least one form of economic crime in the past two years as per the first edition of the report.
ad says
But I think the way India's economy is growing, I don't think it will be bad investments for Russia.
.
Oh, they will rip them off via fraud big time:
Economic crime and fraud continue to be a significant challenge for Indian companies, with 66% of organisations experiencing at least one form of economic crime in the past two years as per the first edition of the report.
https://www.pwc.in/press-releases/2023/economic-crime-and-fraud-continue-to-plague-indian-companies-pwc-india.html
Another reason the Indians are doing this I bet: they don't want the Russians to cause price increases in certain areas in the Indian economy, like food or copper/iron, etc.
The solution to all currency problems is simply to use silver or gold by weight once again, as was done for thousands of years.
The solution to all currency problems is simply to use silver or gold by weight once again, as was done for thousands of years.
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This is a 1hr video, but very good explanation of coming de-dollarization. Take sometime to listen to it.
I dont agree 100% with the points in the video but would like any financial experts thoughts about it.