Why the renminbi can't rival the dollar's reserve status | FT
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- Опубликовано: 12 янв 2021
- America enjoys an exorbitant privilege from the fact that the dollar is the world's reserve currency. China would like its currency to have the same status. Asia markets correspondent Hudson Lockett explains what China needs to do to make it happen.
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Never trust a man without a belt...
Actually, Beijing is actively holding back the Yuan from internationalizing because they don't want the Yuan to appreciate massively because that will collapse their export economy.
Good point. I wonder why this wasn’t considered in the making of this video
For now. As soon as they can not only produce high tech but also create new products (for example 5G) they will be able to comfortably move over to being a reserve currency. They also want to strengthen their internal economy first as a rising middle class will provide enough economic strength in case of external turmoil.
@@mullerstephan the problem is that they need to bring in higher ownership rights in order to change that. Their economy is practically exports and construction and there are documented cases just last year that they evict not just lower middle class but upper class people who had no problem paying their lease just to tear them down and build new buildings. It doesn't breed much trust with how weak the contracts seem to be treated over there.
@@demonvictim very true. I don't see that changing in the near term. However, they are opening up their capital/bond markets and will only continue to get investments if they improve their standard. The world will hold them to a higher standard in all regards and I think that they will be forced to adapt, sooner or later.
I don't think that is a valid concern because if Yuan appreciates too much, they can simply print more of it to depreciate it.
i find this guys lack of belt disturbing
formal trousers always, always!, go with formal belts (or suspenders).
What's wrong with immediate and handy "dropping of hurdles" design to respond to the demand by circumstances for "exigent relief," as in the case of 2008 Lehman disaster?
Watch Suits and you might change your mind.
Hahaha FT budget constraints save money on that Gucci belt for this show.
China the Art of war" , XI is the fire breading fifty ton Dragon, in the sky
Ready to burn your fields he is drivin
an highly motivated, after what I seen
in the US state Capitol I'd bet on the 🐉
for now.
FT give this guy a raise he cant even afford a belt jheez
Why is it necessary to have a belt though 🤔
@@prajwalchavan4781 He is at work and it looks informal. But I totally agree with you.
@@prajwalchavan4781 formal trousers always, always!, go with formal belts (or suspenders).
Did you wake up late? I have the impression that you forgot to set the alarm and rushed to the office. Where is the belt?
@@ulizez89 that's not fair.. The capability of the person matters not his attire
Did he get those high pants from his grandpa?
His grandfather pass ed his hundred year old trouser to him before he died 😁😂
actually from a clown.
Why not. It will eventually just like how the dollar replaced the pound sterling. History should teaches us that the Us dollar is not a special currency. Its strength is dependent on USA industries which has been on a decline for almost a decade now. With countries from Asia getting their act together the so called countries who felt they were special because of lack of competition from other countries are now feeling the heat.
From your comment I'm guessing you know nothing about history, and yes the dollar is special, very special
It's impossible, let me say it again it's impossible for a Chinese currency to rival the dollar without The CCP giving up control, this will never happen hence, dollar is still king
@@henryeghaghara9385 Keep dreaming buddy. When did America become an economic power? Joker. It took the USA over 100yrs for the usa dollar to replace the pound sterling as a reserve currency. The USA dollar has only been a reserve currency for 50yrs. Do u really have any expertise in the field of financial economics? 🤔. I'm not sure u have any basic understanding of the field you are trying to debate. Like I said the USA finished. Ask the British what were their financial economic symptoms for the £ sterling to lose it status. Look at any credible data institution and look @ how much economic transactions are made in USA dollars compared to 20yrs ago. The Chinese will do what the Chinese has always done. To make sure their industries are matured and able to face the world before there will be any liberalisation of their currency. Even with a controlled currency they still account for a huge percentage of world trade and they're still communist 😁😁😁. They've embraced and keeps investing in science & technology to close the poverty gap. The USA has a reserve currency but still complain. How dumb is that? Can't compete?
@@kwekujunior2600 the thing is that when the pound sterling was king it was more around the time of imperialism. We are now in the age where borders are disappearing and trade is more deadly than a bomb. As long as nations accept debt be paid in usd then the dollar is king. For china to step into the reserve currency stage they either have to provide a technological advancement that no other country can compare, or rebuild all these countries economies anew such as the post ww2 reconstruction. Also china only has a few nations that are allied to itself but it has not been through a grand war or cold War such as America and Russia.
@@demonvictim All the conditions you listed for a reserved currency sum to one word: credibility. As long as Fed keeps printing money and US gov keeps swinging SWIFT to sanction other countries at its will, the credibility of US dollar keeps decline.
The rmb is in big trouble now because the Chinese banks aren't liquid. Many chinese banks are not even allowing withdrawals from their account holders much like the situation in Lebanon. Currently, the Euro and US dollar are at parity and with the British sterling pound, it's below parity. Currencies like the Swiss franc are not desirable because of its limited use in banking. That leaves the US dollar standing in these uncertain times.
It’s like he’s trying out clothes for the first time ever, not only do they look weird, he’s not even comfortable wearing them!
He almost looks like the 1940s guy that runs out and brings back newspapers to the real Wall Street broker.
@@svetimarko2 right! His glasses aren’t helping either!
When the time comes, it's not going to be any "rational reasons" why the CNY can't that matters, but the deteriorating confidence that justify the reason why the USD no longer can. Besides, CNY doesn't need to replace USD, just enough and the USD would be in a vicious currency defence position. Keep printing and we will get there sooner if not already.
It depends on how valuable the usd is in America. What is the best standard of living the dollar can get you compared to what the rmb can get you. Also even as bad as it is bribery is a good indicator of the standing of currency. It will be crazy to bribe the leader of North Korea, Venezuela, or China with their own currency but how often do you hear about previous presidents giving speeches. Those currencies don't have the power in their native country as the usd has in america
Lol demographics and geopolitics explain why the Yuan and rmb will amount to nothing and collapse, if China is still under CCP or CPA control in ten yearsl I'll eat my hat and feel yet more pity of the people of China.
This video is 1 yr old now. He said the US can keep printing the dollars as much as they like without worry. Wrong.
Today, US inflation is 9.1%, highest in 40 yrs since 1982. In fact, real inflation is like 30 - 40%! Gas is going thru the roof, as high as $7 per gall, double the regular price. The $ is in decline and its value eroding fast. Cost of living has become very expensive, and supply chain disruptions causing very painful economic hardships. US in deep $h!t caused by excessive printing of trillions and trillions of $. The petrodollar is slowly diminished. Saudi Arabia is accepting yuan for gas. Russia demands pymts in Ruble for oil n gas. India pays in Rupee for gas, China in Yuan. So, the $ as a reserve currency is getting useless. And, US national debt is $30 trillion and rising. Can't keep using the cr card without making paymt. It is not sustainable. Endless wars spending and nothing for domestic economic spending. COVID lockdwn causes shutdwn in production and supply chain mgt. It is already happening. No need to wait longer than 1 yr!!!
Talking about Swift here is as old school as nastily exhibiting these one hundred year old pants. Financial Times is unable to read the future developments of China👍
this is how it starts, they start saying why it’s impossible
I'm sure the british said the same thing back in the day.
exactly
Let's hope the RUclips algorithm will recommend this in 10 years time and see how right this is.
It’s right. Haven’t watched the video and I already know the answer is a hard NO
@@ogc9649 You really don’t have to be an expert in the field to understand this. China having a reserve currency status makes their exports less competitive.
@@IpSyCo True. Surprised the guy did not mention that, it is a huge factor.
@@IpSyCo then why did they try to liberalize their currency? Why are they attempting and failing to vreate a Chinese reserve currency?
@@IpSyCo but the gains of being a reserve currency farrrrr outweigh cons. A relatively small hit to exports is nothing compared to the geopolitical power and monetary flexibility that comes with reserve status.
those r some highhhhh wasted pants lol
Finally a video worth watching!! Thank you for the professionalism and the informative content!!!
Seriously! I've been an FT paid subscriber for a few years and for me its been a while since the've published anything on youtube worth watching. Their newspaper/website is top notch but for whatever reason their youtube channel lacks the same in depth feel. Most videos are highly opinionated and theoretical in nature.
Lol.
that is barely informative..
He skipped the Onshore Yuan. The Yuan reserve under BRI projects. If you understand it everything was souced in China. Isn't that brilliantly engineered?
Yet there' s also the €....but the way Mr Pants talks no currency (not just the renminbi) can't challenge the US$.
The euro is a very close second
Rmb will never become the reserve currency it may become A reserve currency and be tied with the euro and dollar as we are now, buy it'll never be THE reserve currency
That's what they said about the british pound before the dollar took over, dumbassery
China is still mainly an export economy, it's in their interest to keep the Renminbi not so Global for now....
I think concern of appreciated Yuan killing export economy is overblown. Can't they simply print more Yuan to depreciate its value?
I’m not believing a guy who dresses like that.
Why's his pants hiked up so high🤨🤔
because US$ exchange rate is soars
@@wan7ucxOqSUBryTgfpBr7777 🤣 goes up and down depending on the U.S rate 💴
How about they have a freely floating currency first?
Didn't he just discuss that??
how about they do whatever they want with their money
@@mullerstephan How about you comment on something you understand Mr 50c?
@@philipvjones397 how about you go stick it where the sun don't shine
@@mullerstephan Make sure you stick your 50c there too
How do you leave out RMB going digital in a topic like this
we need a 2022 update, taking into consideration now that some countries have gotten rid of their US reserved.
Lol chill, China is 2% of the worlds reserve. The Canadian dollar has a bigger chance of becoming the worlds reserve currency
@@OGNord don't forget Brazil, Russia, India, China, and South Africa.
@@OGNord ruclips.net/video/zMIijnj9VG8/видео.html
Not rival nor prestige, just don’t want to get caught on stupid sanction.
Is he trying to make a statement against belt and road with his pants?
Very educational and straight to the point. Thanks!
really? the whole world is dumping amercian dollars now😅
@@akltom . Only in your small twisted brain.
What can be apart of one solution to another problem. Adapting as a business as a habit can only to sustainability.🤯🤯🤯
What is he wearing?
Clothes
hipster UK journalists clothes, very typical for FT reporters
RMB cannot replace USD because this channel says so or western media say so, otherwise I don't see much problem.
those pants tho
…finally someone who wears decent trousers! Am really over people wearing stupid trousers that look ready to drop-off at a moment’s notice 😄
Another great video
This weirdly dressed dude superimposed on that screen just looks so damn weird. So much of the information will be lost in presentation. Considering the exorbitant nature of your subscriptions, the Financial Times should certainly do better than this. What happened to Brooke Fox? She made charts that count one of the most exciting FT video productions.
Which of her videos do you recommend? I'd like to see.
@@MrSupernova111 the one where she is naked lol
China has no plans to be the reserve currency. The US would not allow it unless they can control it of course. The EU tried and got smacked down real hard. It takes an economy far larger than the US to anchor it, to a military powerful enough that no dares to mess with and control of Middle east oil. What China can do however is de dollarize. So long as trade is no longer based on USD and their currency value can maintain value or gradually go up it won't put a brake on their economic planning. No plans can be done long term if the currency goes up and down like a yoyo. The US may not like it but they can't do much about it. China is basically just sitting down there waiting for the USD collapse on its own.
Euro should be the world's reserve simply because is controlled by many countries and not one country that who knows what could do for its interests. It is way safer
You can see it on the map already, there is not a monopoly but a duopoly, the euro is almos as strong as the dollar, the dollar dominates in the Americas, the euro in Africa
I don't think that we will ever see another reserve currency, we'll see a 3 way share of the world reserves, just as in the last 10 years we've seen the rise of the euro into a duopoly
@@Azknowledgethirsty no no no, you are getting it all wrong. That Map is showing how much currency is FLOWING through the banking systems of the world every day for export payments etc, etc.
RESERVES are still dominated by dollar (over 60%) which is they money banks hold as foreign currencies.
Also, the Euro is NOT controlled by many countries but by a central bank which makes policy for all member countries and its policy is not always beneficial to all of them, in fact it is never able to satisfy all countries together.
yea thats what they said with the pound
It's not whether it will but it's when
Ah yes, it will replace the dollar. Outside.of the US many for us have begun buying Yuan and unofficially accepting payments in Yuan as well.
Don't know where you live but it must probably be somewhere in a third world Asian or African country. Western aligned countries laugh and spit on your yuans.
Yuan is capable of competing with major currency. But trust is only stopping people to invest. One example is Evergrande.. Your money can vanish in no time with no justification.
The question isn't if, the question is when.
closer to never, than soon
They video just explained that its not likely to happen anytime soon. Don't get your hopes up. I hope you understand the difference between GDP and currency.
🇺🇸 China doesn't want to replace the funny money dollar! USA, UK, EU Japan can have all the Fiat dollars they want.
The comment section lmao
Why the tenminbi can't viral????
Invest in RMB. The only currency worth holding. What do you do with money? Where are all the things made?
don't worry man Renminbi is catching up
I thought at one point the Chinese money was close to 1 for 1 with us dollar?
0:30 that’s the point, is it actually worth it to give up the control of the RMB currency in exchange of gaining reserve currency status?
It would give them global power similar to the USA. How do you think we can sanction other countries on a whim?
It's always a trade-off. You give up some control but you gain immensely in others. Can you imagine this.. the Americans don't really need to work that hard to get material wealth. Just call the Fed, print digits on green papers and then redeem Chinese soy or Canadian oil with those papers. Meanwhile the Chinese farmers toil for 10 hours daily in the fields, and Canadian lands are poisoned by fracking chemicals. That's the power you can wield if your currency has reserve status. What China is doing is the opposite, they prevent the RMB from getting out of the country because they might lose "control". What they lose is people generous enough to give away their Lambos and whatnots for digits printed on red pieces of paper.
@@tetleydidley . A few rule the masses. It modern day feudalism.
not yet, but it can in 10 years, with e.g. Saudis settling oil trades in RMB
the US needs to bear its responsibility - you can no longer keep printing money, financed by the world's need for USD in the past - you wasted so much money (stimulus checks? lol, military? trillions on Obamacare? Com on, you deserved it)
HA HA
Watch out for the fake RUclips accounts telling you to invest in crypto.
See below.
Looks like it was reported as I can't see them. But you're correct to watch out for the scammers.
Buy Crypto! Bitcoin to $100K soon! Call my broker at ..1 8.............. Nigerian Prince! Yea, you don't need his or her number!
I do whatever I want with my money and if someone tells me to buy crypto its up to me ok
Until china decided to exports more instead of imports it wouldn't be possible. USD become world reserve number one because of US trade deficit, now solve the puzzle!
If Yuan prints too much, they can print more to devaluate it. Seems like the concern is overblown.
CCP controls and limits renminbi because majority of China's domestic market is still dark. It means a majority of Chinese domestically trade with cash rather than through banks where CCP can oversee transactions. When renminbi is widely held by foreign entities, China's domestic trade can easily be controlled and dominated by those foreign entities. CCP is limiting foreign dominance in domestic trade and foreign influence in domestic matters through renminbi because Chinese domestic market and trade are still ancient and trade with renminbi cash. That is why cryptocurrency is such a threat to countries like China and thus CCP wants to dominate cryptocurrency using quantum computing and have more control globally in global underground markets where global banks and governments do not have control.
the pant he is wearing doesnt require any belt. Come on guys.. even there are suit pants that can be worn without belt. He knows his style.
The world should just accept the dollar as the reserve currency. If something isn’t broke, why try to fix it?
dollar is kinda broke.
Put a belt on!
Still good without a belt
In life what you insists can't, happens. Well at least 60% of the time it works everytime.
Fast forward to 2023...🤣 And guess what not only do the Chinese want de-dollarization but so to does the US FED.
Renminbi or Russian currency can never rival US Dollar. But there is no wealth creation in USA and Dollar is a legal tender of the world at the point of a gun with USA serving as a self appointed policeman of the world. So although renminbi or any other currency can never rival US dollar this is also the only reason why we don’t find China or Russia with equally powerful armies not taking matters into their own hands and bringing the dollar down in one day. There would be a global chaos without a store of value in the absence of equivalent gold and no policeman in the world.
you might wanna check again
Why the eerie music?
Watch this space....
No more us dollar supermacy in future.
If Remnibi can't rival the Dollars, why are you guys feel so threatened? Lol
Is that what it sounded like to you? Go watch the video again and pay attention this time.
because so many people ask that question?
The new Eu-China finance-investment deal may be a percursor for changes...
What deal is this?
Lol no, the deal won’t even begin to open up the renminbi
For in born citizen, we thought the 🇲🇴$MOP and $CHF🌏 /Krone🌍 is much valuable when package in Yacht/Private jet in as smallest size for logistics in Postoffice/DHL/FedEx etc , why does the RMB not exchanged to 🇰🇿kakastan 💷💶💴💵exchange/mogolia currency than back to EUR ? For INT.Trade ? Btw just watching Colombia boardcasting television (CBS news🇾🇹 ) for learning Hispanic English 🧐, but doesn't fell good 😫
Everybody is talking about his pants and overlooking the fact this guy said the u.s. can always print more dollars without a huge impact. I dont know whats more ridiculous, his pants or that statement
It's true though. The US can print so much money and still it doesn't make a noticeable dent. Look at the recent covid stimulus. Interest rate didn't skyrocket, inflation is unnoticeable, gold isn't up, exchange rates are relatively stable. All this in spite of US money supply going up by around 30% in 2020. Previously it took the span of 10 years or so for the Fed to increase money supply by that much. I don't have the actual statistics on top of my head but you can look it up yourself, go to the Fred's website and search for MZM money supply. So yes talking about beltless pants is definitely more outrageous.
Why have a truly global currency? What is the point of that currency? In theory, it would have been more advantageous for countries to be able to trade in national currencies or a truly global international currency not linked to any particular country.
to make trade easier
It can't till it does
China going to use the belt and road initiative to expand Yuan use thru digital yuan
Any sole digital currency backed by a government or corporation without 3rd party verification is useless internationally. Facebook libra is going to fail just the same unless they provide heavy benefits to foreign continents like South America and Africa such as building a widespreading infrastructure.
Sonny J it’s to avoid sanctions from western nation that’s the main reason
give it 20 years
DC/EP will be game? changer
Yes and no. The e-yuan is just another form of cash, so it’s nothing new. It can be easily transferred overseas on clearance, so made it possible to by pass the Swift. Though the by pass is only theoretical as the Chinese central bank has banned it cross borders already.
Whatever the FT says think the opposite.
The Dollar is TOAST.
Some time around August.......
Democratizing rmb is not what the it was designed for. Forget about it.
Troja Barkk
revival doll Reserve status
THX FT 50 e7 DB 10 Digital Curency World
I think I would rather short GameStop than own any Chinese assets.
Noo
-3 fashion style
🇺🇸 the dollar will exist like the pound, euro, yen, but now there's another option ... the yuan! The southern developing region is tired of the wars, sanctions, looting by the US UK eu Japan.
This video will not age well
The dollar will ALWAYS RULE
lmao America's elites will make sure it won't. Watch the Fed continue pumping inflation into the economy, making that dollar worthless
So does free market capitalism makes an economy Democratic?
Gundam Wing lookin azz
That'll be a dream that China might never be able to realize😎
😀 you think dollar is free because you don't understand swap lines swift system, Digitally you can still be blocked from getting dollars😭this exactly what happened in history falling power comes with an excuse raising power always moves forward...
💯
This video is about the USD vs the Renminbi global dominance. Try to stay on topic.
Above navel slacks and no belt...
All finance no fashion.
I thought this style looked dumb in Her and I think it looks dumb here.
FT is always correct in predicting the future, the dumb people around world can only look on the prediction and accuracy with awe inspired eyes.
Especially when the FT have different people saying often opposite things, someone at the FT will always be right.
@@j.j.2831 that’s true ,but only some time. I guess that’s best we could ask for.
USD took 90% of the international trade and now its lower than 65%! So, you’re telling me RMB will not take over USD? Hmmm, maybe for trading with US. You’re not wrong but not quite right either
They can’t liberalize currency without Rmb completely crashing
where is your belt? I can't believe you are not wearing a belt. The belt is the foundation to your outfit.
0:37 right at the open the guy is dress like an old woman
Oh, who is hoarding the power of their global reserve currency? Who is QE into infinity? Have you no shame?
bruh is that a pant or a dress ur wearing?
Rothschild lies
Renminbi.....literally a cheap Chinese copy of a superior Western product!
US dollar is green while RMB is red. Your point is?
I think the Chinese economy has been around a couple of thousand years longer than USA. But believe what you want.
All fiat currency returns to it's intrinsic vale of ZERO.
@@MrB1923 Every 100 years or so... If it happens... Lol..
This guy has very little understanding of currency
No.
#1 reason capital control