[sgbuffett]

All this moves will mess up the trading system instead of keep one trading currency in reserves you now need to keep 20 or.30.

These countries are more than happy to sign such deals with China because now China has to take the Brazil Real which is a currency constantly falling. The Brazilian citizens themselves like to keep USD instead of their local currency.. .



Just like many of Xi's policies to go against US, like belt and road, it hurts China's own interest. Superficially Belt and road looks good but manh countries simply borrowed from China and cant pay back

Similarly many countries sign these agreement with china because they can now off load their weak currencies to China  trade currencies that their own citizens don't want to hold. I believe  China sign with Argentina also and Argentina currency drop by 50% every 6 months. China also sign with Turkey another country with plunging currency. China now has to hold these falling currencies in its reserved.. and will lose value.

US dollar is needed by all these countries because collectively they owe 23T in USD that need to be paid back in USD$. The USD$ not only dominate trade but global debt. The amount compounded over time and there is insufficient USD dollars ...this is worsened by Fed raising rates making USD shortage worse


This means that many countries when they get paid in Yuan will simply convert to USD and put downward pressure on Yuan.

Many of Xi's strategy against US are flawed and have serious blow backs. They look good politically and are cheered on by China fans but hurts China in the long run.