Views: 5753|Replies: 14

Is this a good time to abandon the U.S. dollar and use other currency for trade? [Copy link] 中文

Rank: 6Rank: 6

Post time 2013-9-12 05:51:41 |Display all floors
With China's  and other Asian countries' rise, many countries who had been or be potentiala victim of U.S. and Western allies' economic strangalation or economic  sanction, can finally have option. The best example is Iran. Iran had been a victims of U.S. and Western countries' economic warfare simply because Iran wanted the British out of its oil fields.  China's strong economy and their policty of respecting other countries' internal affair and culture, many countries around the world can finally have hope again.

Can country now can abandon the U.S. dollar as a trade denominator and use the currency of their choice base on their own national interest?
I am an Asian American. I came to Chinadaily forum hoping to share my experience, knowledge, and my point of view. And in return I want to get the same in return from friends from around the world.

Use magic tools Report

Elite Member

Snowipine

Rank: 5Rank: 5

Glod Medal Blogger of 2013

Post time 2013-9-12 07:47:19 |Display all floors
Other new currency can be a hope for the alternative in world trade, say RMB, but at present, totally abandon US dollar is somewhat unrealistic and  too early, i personal view.

Use magic tools Report

Rank: 2

Post time 2013-9-13 13:58:58 |Display all floors
Iran, Syria & China are using their national currencies for their deals.
Iran, Syria & Russia are using their national currencies for their deals.
Iran & Syria are using the Syrian Pound in their deals.
Iran & Syria are using Euro for deals wih the rest of the world.
Any currency is backed by Gold or other international currency except the Dollar, USA is printing continuously without any backing.

Use magic tools Report

Post time 2013-9-13 14:45:01 |Display all floors
Reminder: Author is prohibited or removed, and content is automatically blocked

Use magic tools Report

Elite Member

Snowipine

Rank: 5Rank: 5

Glod Medal Blogger of 2013

Post time 2013-9-13 15:11:11 |Display all floors
LaughsatYou Post time: 2013-9-13 14:45
There is another currency, its called the Euro. Its been badly off since 2009.

RMB simply is not i ...

The alternative reserve currencies i personal think, apart of US Dollar, next will be euro, and next willbe RMB.
Euro generally will be used among Europe continent international trade, of cause, it has more other worldwide influences
The RMB will gradually catch up the pace, even accelerated quickly in ther near future, but right now it's main limited, i mean mainly, in the asia as well as BRICKs areas.
And finally here will be thus a scenario, the world will be mixed with these three kind of currencies as the major international currency reserve alternatives. and eventually one match another basically evenly.

Use magic tools Report

Rank: 6Rank: 6

Post time 2013-9-13 20:29:24 |Display all floors
Can country now can abandon the U.S. dollar as a trade denominator and use the currency of their choice base on their own national interest?


No. There is no viable alternative.
Europe is poorly regulated, poorly governed and in a state of mess - I keep my hands away from European currencies.
Japan is running an inflationary policy, so the Yen is declining in value. Thus, you can't invest excess liquidity.
The english pound also proofed less stable than a reserve currency should be - especially in crises.
And the Swiss frank has been pegged to the Euro since two years ago, so it's useless as a Euro-alternative.
Other currencies are simply too unstable and too volatile to be trusted.

Thus, the US-Dollar is currently the only currency that makes sence to be used in international trade.
However, if the Chinese government would unpeg the Yuan form the Dollar, sell off its currency reserves and allow the establishment of a decent financial center in mainland China, the RMB could indeed become a viable alternative. Every decent economist would suggest companies to buy Yuan instead of Dollar for trade in Asia - as China is an export-driven nation, which in the long term drives the value of the Yuan up, rather than down. We'll see what kind of reforms Xi will announce in November!

Use magic tools Report

Rank: 6Rank: 6

Post time 2013-9-15 00:14:28 |Display all floors
If you use U.S. currency, it is an national security threat. The thieves is in control of the U.S. and they can kill your economy through economic strangulation and make your country ripe for bombings and war. Switching to gold is good choice but can not be sustain for larger economy. I think Chinese currency is safer. The culture of mutual respect and mutual benefit is better. The U.S. do not practice the culture of co-existance. They get rich by making people in other countries into slavery and turn real government into puppets figurehead they way they are trying to do in Iraq, Egypt, Libya, and now Syria.
I am an Asian American. I came to Chinadaily forum hoping to share my experience, knowledge, and my point of view. And in return I want to get the same in return from friends from around the world.

Use magic tools Report

You can't reply post until you log in Log in | register

BACK TO THE TOP
Contact us:Tel: (86)010-84883548, Email: blog@chinadaily.com.cn
Blog announcement:| We reserve the right, and you authorize us, to use content, including words, photos and videos, which you provide to our blog
platform, for non-profit purposes on China Daily media, comprising newspaper, website, iPad and other social media accounts.