[webinarian]

阿根廷宣布再从中国进口商品时将开始使用人民币而非美元进行支付。挡都挡不住的全球性去美元化浪潮，那个国家快绷不住了

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[Sticw]

They throw away their own currency for yuan. Then use yuan exchange USD...

[webinarian]

They have to discuss and to agree on a currency they find most convenient.   

Take for example, when Argentina buy Chinese products, the seller very likely asks for RMB. Just like you buy from Taobao, the price very likely is RMB.   

If Chinese buy goods from Argentina which may be rare, they may have to agree on a currency (Argentina) to use.  


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[webinarian]

They throw away their own currency for yuan. Then "use yuan exchange USD"...

I can't understand your logic of using "Yuan to exchange USD".   

If you buy from Taobao in RMB. You use credit to pay the equivalent in RMB. Are you saying the seller in China to convert the RMB to USD?   

I think, very unlikely. Why should the Taobao seller convert into USD? The seller have to pay his workers in China in RMB, not USD.   

Very odd of your statement "Use yuan exchange USD".

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[singlon]

The trick to survive is not don't use US corp Inc Dola
just don't get fedPAY-ed new networks new ledgers
NWO new world order.

[cityhantam]

Smart move! 

[maxsanic]

I can't understand your logic of using "Yuan to exchange USD".   

If you buy from Taobao in RMB. You use credit to pay the equivalent in RMB. Are you saying the seller in China to convert the RMB to USD?   

I think, very unlikely. Why should the Taobao seller convert into USD? The seller have to pay his workers in China in RMB, not USD.   

Very odd of your statement "Use yuan exchange USD".

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When we buy from Taobao, although the seller lists its price in RMB while we pay using our credit card in SGD, it appears on the surface to us as a user that we exchanged SGD to RMB when we initiate the purchase.

However, backend what really happens is the bank/credit card will first convert our SGD to USD first then using the USD convert to RMB to pay the seller. Most of the commercial transactions either through credit card, overseas cheques or TTs all follow a similar mechanism when they go through SWIFT. That is what gives the USD its hegemony and reserve currency status. It also allows the US government to have intimate knowledge of trading information between two parties that are totally unrelated to US.

This is why US is able to enforce its sanctions on other countries' companies. By blocking sanctioned parties from using the USD, they can effectively block out or at least heavily impede the sanctioned entitiy from doing any business with overseas parties.

When countries say they want to settle in their respective domestic currencies while trading, this usually means the currencies in question are directly converted with each other and this is where alternate transfer methods such as CIPS and SPFS come in. These alternate platforms generally mimic the format and security protocols of SWIFT but do have the additional step of X to USD to Y.

Another common tool is currency swap lines that are pre-agreed between central banks of two countries. This allows Country X's central bank to directly exchange with Country Y's central bank for Y's currency which can then be provided by Central Bank X to its companies for trade settlements. However, I'm not very sure beyond theory how this operates at the downline when companies make payment for overseas products and services.