It's symbolic only

You can't be serious. The Yuan/Renminbi is not a freely floating currency and is loosely pegged to the USD.

China = shit views and it's not going better

im still a bit confused why the idea of changing Oil payments to Yuan was even floated around. could just be for the media with no real plans of implementation, tbf i have no idea.

No one is going to do it when the value of the exchange can be altered by the government of China at a moment's notice. Imagine building up massive reserves of RMB to purchase oil, and then China changes the official exchange rate of RMB to, say, the Euro, and all of a sudden, your reserves purchase half as much as yesterday - all else being equal.

This post was edited by Santara on Mar 16 2022 11:25am

yup sounds like a mess. Russia announcing they'll pay foreign debts in rubble too, international finance seems to be shaky at best atm. US dollar is backed by oil, but likewise Oil is backed by the US dollar.

How is this any different than what happened in the US with the dollar?

we cant pretend the US federal reserve board has the same level of control over dollar valuation that china has over yuan tho.

Between the US government fiscal policy and the Feds monetary policy I would say they have total control. I mean look at prices man and look how far your dollar goes today compared to even 3-4 years ago. I feel bad for old people that saved a nest egg to have their hard earned savings eroded by 40-50% in like 5 years due to loss of purchasing power.

I agree many are skeptical about China but it's like imagine if you're a country holding USD as your primary fx reserves and seeing these shit policies and losing so much of that wealth so fast. Does the yuan replace the dollar in the next 10 years? No. Do most prudent countries diversify away from their mostly dollar holdings? 100% for sure.

they do have total control in a sense, but its like steering a massive barge, not a speed boat.

and i know given history the inflation bubble, real estate bubble, auto loan bubble, stock market bubble, etc will have to pop eventually. we just have to sit back and laugh at the fed while they consider a .25% increase in interest rates, as if thats enough to let the air out slowly instead of inflating it further.