this post was submitted on 03 May 2025
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United States | News & Politics
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I don't expect that China would want their currency to necessarily become the reserve since it would mean it would have to be freely convertible. However, digital RMB cross-border settlement system is now connected to ten ASEAN and six Middle Eastern countries, potentially bypassing the SWIFT system for about 38% of global trade. I expect, China will use the drop in demand for US currency to urge further dedollarization.
True! It is a mystery the intentions of China regarding the currency. Slowly but steadily disposing of their dollars but nothing mayor in wanting to replace it either... probably a good move not to put wood in the fire. Europe missing the chance of a lifetime meanwhile!
The EU’s seizure of Russian foreign assets, without legal justification, isn't helping either. By unilaterally appropriating these holdings, the bloc has set a precedent that any nation outside the West would reasonably question: what assurances exist that the EU wouldn’t replicate this tactic against their assets in the event of political conflict?
https://www.reuters.com/business/finance/europe-hand-billions-frozen-russian-cash-western-investors-sources-say-2025-05-02/
Don´t get me started with the assets seizure (and interest straight robbery), let alone banning apolitical players just for being born within the wrong coordinates. The harm here will be felt for years to come and in the hundreds of billions just for a posture thought by a handful of heads in Washington and Berlin that actually could care less for their own economies, let alone Ukrainians. Switzerland was rapid to stop that and already taking some of the funding usually would have gone to the EU... bu the eyes for capital is looking toward Asia.