[webinarian]

Sorry, I do not quite find this thing plausible about selling emerging currencies into USD and then using the USD to buy the Yuan and then to sell the Yuan for USD to repay their USD debts.

This is too much of a round-about way, which could cause quite a fair bit of losses taken on spreads.  Why cant they just sell their emerging currencies to USD and use that to repay their debts?

They are being hit with a double whammy in terms of a strengthening USD which they have to buy to repay their loans as well as enduring servicing high interest rates  and will not have the appetite to do the first line above.

I think the Yuan weakening against the USD may have other factors than what you mentioned.

You are right.  

SgFett is just trying to pretend to be an expert on financial matters but he knows none.   

He talks of emerging countries selling their currency into USD and then selling USD to buy yuan.  

He talks like all countries are just exchanging currency for no obvious reason. Which country would do that such that they have to pay for exchange costs for nothing.   

When EU buy ruble, it is because Putin told them they have to use Ruble to buy Russian gas. They don't do it for nothing like SgFett suggest.  

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