*Sudden Chinese decision shakes the corners of the entire world* China surprised the world today and decided to cancel the dollar peg in the stock exchange transactions and decided to deal officially and the official link to the Chinese yuan instead of the dollar, and this is a bold and important step in China's economic history. This means that the dollar has become non-existent in Chinese trading and the US dollar will fall strongly against the Chinese yuan and may affect it in global markets. And all the global markets were stunned by the decision. The news was discussed today on the BBC World English afternoon program. It is an economic war that could lead the world to a devastating war that cannot be neglected if America acts foolishly in the face of this decision !! China 2021 will lead the world. This is China's old dream and what it planned to achieve for decades or more. China plans a separate digital currency e-RMB, to take on fights with $ https://amp.theguardian.com/world/2020/apr/28/china-starts-major-trial-of-state-run-digital-currency e-RMB, which is set to be the first digital currency operated by a major economy. A sovereign *digital currency provides a functional alternative to the dollar* settlement system and blunts the impact of any sanctions or threats of exclusion both at a country and company level,” last week’s China Daily report said. Some government employees and public servants to receive their salaries in the digital currency from May. A decline in cash usage is expected to continue amid the growing popularity of digital payment platforms and as people avoid physical contact during the coronavirus pandemic. It may also facilitate *integration into globally traded currency markets* with a reduced risk of politically inspired disruption.
Didn't take the time to read anything, but the last thing an exporter wants is a stronger local currency facing the dollar. Every single place that survives on exports can only do that with a strong dollar, otherwise they quickly become cost prohibitive. Once the dollar hits a certain level, it becomes cheaper to manufacture things elsewhere. Unless China is planning to play US+EU roles and switch from being a producer to being a consumer, by employing the same model US+EU did: keep the creative jobs home, outsource manufacturing to other countries. Who is going to play China for China? There are a few candidates, indeed, but this would take decades to happen and definitely the first step would be to start a national creation industry (which depends a lot on freethinking), outsource manufacturing, and THEN strengthen the local currency. It's the other way around.
The purported features of this currency provide only benefits to the CCP and risks to the holders of this currency. I’m certain all their authoritarian buddies would be interest in getting free commiecoin, but they’d immediately exchange it for dollars. After all, despite sanctions, cash is still king.
Didn't the US complain for decades that China is artificially undervaluing their currency? So this should be welcome news then. Btw, "rolling the dice" means making a haphazard, risky move with uncertain outcome. Not sure if that's the headline you wanted for your propaganda piece.
Based on my understanding of the article, RMB is still pegged against USD. It's just that digital currency is pegged against RMB.
Did a fast read but...Where did it say in the article that China decided to cancel the dollar peg?
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https://www.voanews.com/economy-business/chinas-digital-currency-takes-shape-will-it-challenge-dollar?amp