The dollar’s dominance masks China’s rise in finance

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China’s financial clout lags far behind America’s. But it wants to catch up—and the pandemic could speed its progress

, a British bank that is one of the territory’s main conduits for accessing American dollars. The other, operated by the Bank of China, dispenses Hong Kong dollars and Chinese yuan. Flashing in the eerie, pandemic-induced silence, they are a metaphor for China’s discreet quest for financial influence.

Funding markets also hinted at a serious dollar shortage. The three-month “cross-currency basis” swap rate, which tracks the premium traders pay to temporarily exchange euros for dollars, reached its highest point since 2011. The cost of borrowing greenbacks in the interbank market soared. Alarmingly, the value of American Treasury bills started falling, suggesting investors were selling their safest assets to free up cash.

This “magnanimity” will only heighten dollar dependence, says Eswar Prasad of Cornell University, as central banks amass yet more American bonds as a buffer for the next crunch. But to some that very prospect is a reason to diversify. The Fed’s “repo” facility does not help nations with few reserve assets. America’s rivals fear being denied access. Others may reckon that reliance on a keystone currency could amplify future shocks.

 

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er, no...

The dollar is a tyrant& it's dominance in a multipolar🌎🌏🌍must finish. It's dominance is destructive, for ALL countries with that the US 🇺🇸count with political differences, in addition to abuse of it's power to Imposing economic agendas. COOPERATIONamong all🌍 economies matter

The CNY is used in worldwide money transfers pretty much as often as the CAD... maybe the CAD also gains support?

What the Chinese currency as an alternative? Did anyone learn anything from the recent virus?

We have zero confidence in the RMB as a global currency because behind it is a communist regime lacking moral scruple, integrity and credibility.

🚫 No. CCP will seize all your RMB like what it did to Wuhan people during pandemic. MFA_China SpokespersonCHN COVID19 CCPVirus CoverUp LiWenliang ChinaLiedAndPeopleDied MakeChinaPay

Americanism. Is. Replaced. By Trumpism. !!

waiting for CNY to be demonetized

Noways

🚫 100% disapprove of this. CCP will seize all your RMB like what it did to Wuhan people during pandemic. MFA_China SpokespersonCHN COVID19 CCPVirus CoverUp LiWenliang ChinaLiedAndPeopleDied MakeChinaPay

The 420 has started at

If the economist is saying this, unfortunately the end of an era is coming close. Let’s see if it’s gonna happen sooner or later.

Yes please with a malignant narcissistic president run away ...

见识到了什么叫 逢中必反 这些留言的都是台湾人买来的水军么

Have you recovered from the ChineseVirusCorona already?

You must be kidding ! Have you already recovered from ChineseVirusCorona

better hold on to TP!

Twenty years of 'china rise in finance', yet you cannot even remit RMB

In the wake of the coronavirus, how the U.S. and China handled the crisis will be the determining factor for which denomination will be the dominant.

Are you desperate to sell magazines in China?!

Take U.S. currency out of the 'Petro-dollar' and all of a sudden American currency is just another IMF SDR - (Special Drawing Right) currency. It can easily be phased out as the defactco go to Global currency for transactions. This is the Federal Reserves biggest nightmare.

No.

Bootlicker

Who would like to exchange RMB for America?

Wait - so you think a closed, manipulated currency like the RMB is gong to replace an open, freely traded currency - forget the dollar - ANY open, freely traded currency?

No.

Looks like China is winning.

Let’s see. There’s the Japanese Yen, Swiss Franc, Pound Sterling, and the Euro to name a few currencies that are pretty stable and don’t suffer from convertibility problems. And you think RMB will be the next reserve currency... So do you happen to have any Chinese owners?

Lol

Ditch the dollar!

No. If anything it will be a flight to CHF.

Only if you can trust the government. Ours has problems, but at least our press is independent(ish) and mostly keeps politicians honest (no matter how much they deny and distract).

China, the most interested country on making ‘globalization’ work was the same who destroyed it. Once this virus is over, each country will be dedicated to do their best on being self sufficient as possible. Somehow China has to pay for this. Germany, UK and Japan already started

Daring to go ...

Fuck no, China will never be a alternative

Damn there is no doubt the economist has been sold to China

Short answer: no.

No

Regardless, they must pay the tab...

The dollar dominance in a multipolar🌏🌍🌎 must be FINISH. The COVID 19 corona virus, made evident a dysfunctional International economic system, in that dollar dependence, is an instrument of🇺🇸US economic destructive dominance, UNJUST & UNACCEPTABLE for HUMANITY. NO to dollar.

It’s over for China.... Nobody’s friend after killing the world economy by accidentally releasing a bioweapon....

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