No more dollars in China... [finances]

[Externet]

Hi.

What are the global implications if China tosses the U.S. dollar and mandates the yuan is the currency to collect for their export transactions and to pay for their imports ?

[dimreepr]

The whole system is based on confidence (wishfull thinking), the ability to pay back plus a bit for the trouble; if China is confident enough to do that, I'm guessing America's in trouble.

[iNow]

Depends on how international banks and other countries respond, but it would slow commerce and hurt them... likely more than others 

[Sensei]

You should do research what China is importing from the world, to be able to answer your question.

https://www.google.com/search?q=china+import+from+world

e.g. http://www.worldstopexports.com/chinas-top-10-imports/

"Electrical machinery, equipment: US$496.8 billion (24% of total imports)

Mineral fuels including oil: $343.6 billion (16.6%)

Machinery including computers: $190.3 billion (9.2%)

Ores, slag, ash: $163.6 billion (7.9%)

Optical, technical, medical apparatus: $98.7 billion (4.8%)

Vehicles: $75.1 billion (3.6%)

Plastics, plastic articles: $71.6 billion (3.5%)

Gems, precious metals: $60.5 billion (2.9%)

Organic chemicals: $57.8 billion (2.8%)

Copper: $40.8 billion (2%)"

 

They need dollars/euros/gold/whatever valuable, to pay world for the all these goods.

 

Say, if import is X in Y currency, and export is X in Y currency. Y is really meaningless, as entire transfer of money can be replaced by pure exchange of goods.

Edited May 8, 2020 by Sensei

[Externet]

3 hours ago, Sensei said:

Say, if import is X in Y currency, and export is X in Y currency. Y is really meaningless, as entire transfer of money can be replaced by pure exchange of goods.

Thanks.

Sorry, cannot understand that.   Would't the importer and exporter need to be the same 'entity' for that to happen ?  If someone in Angola needs yuan to import tools from China and is not exporting the U.S. cattle China wants to pay with yuan,  ¿?