There are plenty of good alternatives, which is why people don't bother with the Yuan.

MeisterEckhart wrote on Mar 16^th, 2024 at 7:23pm:


Nonsense, barter is  choice, as we have seen in the current global financial chaos resulting from war and US sanctions.

Even so, the fiat currencies of strong economies don't fail.

Even Russia's currency is holding up domestically, because Russia is largely self-sufficient in food and energy.

freediver wrote on Mar 17^th, 2024 at 9:59am:


Because of their "shared belief"?

The ME, BRICS (inc. China) don't agree with you....

MeisterEckhart wrote on Mar 17^th, 2024 at 7:30am:


No, because there isn't sufficient gold in the world to account for '90% of foreign exchange transactions'  - which is why Nixon abandoned the gold standard.

thegreatdivide wrote on Mar 17^th, 2024 at 10:12am:


Because people don't trust the Chinese government. With good reason.

Quote:


You don't need more gold every time there is a transaction.

MeisterEckhart wrote on Mar 17^th, 2024 at 10:27am:


They don't need a choice of currency; they must manage in the current war economy imposed on them by Putin  (and  NATO).

google

"In February 2024, the inflation rate in Russia stood at around 7.7 percent compared to the same month of the previous year. The figure has increased gradually since December 2023. The highest rate over the observed period was recorded in April 2022 at 17.8 percent.

ie for the 1st 2 months of the war, after which Russia has nanaged its war economy successfully, with inflation coming back to safe levels.

freediver wrote on Mar 17^th, 2024 at 10:28am:


Your fallacy of composition again, you - and like minded - are not ALL people.  the ME, and  BRICS (including much of Arica) c. 3 billion people want to exit the US dollar as reserve currency.

https://blogs.lse.ac.uk/internationaldevelopment/2024/02/29/long-read-the-beginn...

The beginning of the end for the US dollar’s global dominance

Professor Robert Wade writes that the weaponization of the dollar and the dollar payments system against countries such as Russia and Iran over the past decade has incentivised others to find ways to escape the US dollar hegemony

Quote:


You don't need more gold every time there is a transaction. [/quote]

But if a nation can't pay on demand in gold, a 'run on the bank' will occur - and the whole system will collapse, which is why the US abandoned the gold standard  after its status  changed from the world's biggest creditor nation (after WW2) to the biggest debtor nation.

Quote:


Nixon abandoned the gold standard  because:

https://en.wikipedia.org/wiki/Nixon_shock#:~:text=The%20Nixon%20shock%20was%20a,
international%20convertibility%20of%20the%20United

The Nixon shock was a series of economic measures undertaken by United States President Richard Nixon in 1971, in response to increasing inflation, the most significant of which were wage and price freezes, surcharges on imports, and the unilateral cancellation of the direct international convertibility of the United States dollar to gold.
Although Nixon's actions did not formally abolish the existing Bretton Woods system of international financial exchange, the suspension of one of its key components (the gold standard) effectively rendered the Bretton Woods system inoperative.