Skip to content
June 29, 2022
  • Facebook
  • Twitter
  • YouTube
  • Instagram
  • Reddit
  • Telegram
  • TikTok
  • LinkedIn
Orinoco Tribune – News and opinion pieces about Venezuela and beyond

Orinoco Tribune – News and opinion pieces about Venezuela and beyond

From Venezuela and made by Venezuelan Chavistas

Primary Menu
  • News
  • Opinion
  • About us
    • About us
    • Who we are – Becoming a Volunteer
    • Editorial guidelines for contributors
    • Our Sources
      • Venezuelan Sources
      • International Sources
    • Contact us
  • Categories
    • Politics
    • Economy
    • Security and Defense
    • International
      • Africa
      • Asia
      • Europe
      • Oceania
      • US/Canada
    • Latin America and ALBA-TCP
      • South America
      • Central America and the Caribbean (+Mexico)
    • Ideology-Commune-Labor
    • Health-Education-Sport-Culture-Technology
    • Solidarity and Social Movements
    • OT Originals
  • Support Us
    • Tax Deductible Donations: AfGJ Fiscal Sponsorship Program
    • Patreon (recurrent donations)
    • PayPal and Credit Cards
Light/Dark Button
YouTube Channel
  • Home
  • News
  • Dollar Weight Could Halve if China Enacts New Forex Policies: Economist
  • Asia
  • International
  • News

Dollar Weight Could Halve if China Enacts New Forex Policies: Economist

April 6, 2021

A leading international economist believes the US dollar would lose nearly a half of its weight as the dominant international currency once China implements a new exchange rate system in which the price of its yuan is determined by fluctuations in inflation and not the value of major currencies like the greenback.

In a commentary published on the website of the Guardian newspaper on Friday, Kenneth Rogoff said China’s planned changes in its forex system would deal a major blow to the hegemony of the dollar as the anchor currency of global economy.

Rogoff, a Harvard University professor and former chief economist at the International Monetary Fund, said that China’s yuan, generally known as renminbi, has already captured the status of a major international currency due to the size of the Chinese economy and the country’s contestant success in wealth creation.

“…the Chinese authorities will probably someday stop pegging the renminbi to a basket of currencies, and shift to a modern inflation-targeting regime under which they allow the exchange rate to fluctuate much more freely, especially against the dollar,” read part of the opinion piece by Rogoff.

RELATED CONTENT: The Yuan Grows Against the Dollar: is it Good or Bad for the Chinese Economy?

The author said China’s economy has become so big that the Chinese authorities have no option but to distance themselves from the dollar system.

He said the dollar would further collapse once other major economies in Asia, including Japan and India, follow China and give the yuan “a weight comparable to that of the dollar in their foreign-exchange reserves”.

Rogoff said China’s ongoing efforts to introduce a digital yuan would further facilitate the currency’s international use and would allow China to assume a position like the US to regulate and monitor global transactions.

RELATED CONTENT: China Devalued the Yuan Against the Dollar to an 11 Year Low

China’s forex policies in recent years have been a major headache for the financial system in the while Beijing’s continuous economic growth has enabled many partner countries to ditch the US dollar from their trade with the rest of the world.

China is quickly expanding its economic influence around the world through building new partnerships with other countries.

In a fresh blow to US policies to contain its rise, China finalized a 25-year economic partnership agreement with Iran last month. The roadmap enables Iran and China to massively expand their trade and economic exchanges in local currencies without the need to rely on the dollar system to settle their payments.

 

 

Featured image: A leading economist says the greenback is more fragile than ever as China prepares new forex polices.

(PressTV)

Want More?

Don't want to be a victim of the Algorithm?

SIGN UP TO RECEIVE OUR WEEKLY NEWSLETTER WITH ALL YOU NEED TO KNOW ABOUT VENEZUELA

We don’t spam! Read our privacy policy for more info.

Editor2
+ posts
  • Editor2
    https://orinocotribune.com/author/yullma/
    Japan urged to scrap law forcing transgender people to be sterilised before they can transition
  • Editor2
    https://orinocotribune.com/author/yullma/
    South Africa: Parliament Votes in Favor of Land Expropriation Without Compensation
  • Editor2
    https://orinocotribune.com/author/yullma/
    Haiti suspends fuel price hike after deadly protests
  • Editor2
    https://orinocotribune.com/author/yullma/
    US only country in the world to vote against work of UN refugee agency
Tags: China Chinese yuan dollar Economy exchange rate Kenneth Rogoff Opinion US

Share this:

  • Click to share on Twitter (Opens in new window)
  • Click to share on Facebook (Opens in new window)
  • Click to share on LinkedIn (Opens in new window)
  • Click to share on WhatsApp (Opens in new window)
  • Click to share on Reddit (Opens in new window)
  • Click to share on Telegram (Opens in new window)
  • Click to email a link to a friend (Opens in new window)

Continue Reading

Previous Previous post:

The Capitol Raid and Pandemic can Help us Empathize with Venezuelans

Next Next post:

President Maduro Announced New Economic Measures to Counter COVID-19’s Second Wave

Featured image: President Maduro announces new economic measures to tackle COVID-19 second wave in Venezuela. Photo courtesy of Prensa Presidencial.

Tax deductible donations

One time donations

Recurrent donations

Calendar

June 2022
M T W T F S S
 12345
6789101112
13141516171819
20212223242526
27282930  
« May    

NEWS: Most Viewed 72 Hours

Categories

Subscribe to Our Weekly Newsletter

We keep your data private and share your data only with third parties that make this service possible. Read our Privacy Policy.

Check your inbox or spam folder to confirm your subscription.

OPINION: Most Viewed 72 hours

We are on Telegram


Receive our news directly in your cellphone or PC, join us on our TELEGRAM channel: https://t.me/OrinocoTribune1

Download TELEGRAM, click the link above and then press the JOIN button.

We are Copyleft not Copyright


Creative Commons License
All Orinoco Tribune's work is free to use and licensed under a Creative Commons Attribution 4.0 International License.

We are on Reddit


If you are more into REDDIT, join our Orinoco Tribune Community.
Just click below and then click JOIN
https://www.reddit.com/r/OrinocoTribune/

 

  • Facebook
  • Twitter
  • YouTube
  • Instagram
  • Reddit
  • Telegram
  • TikTok
  • LinkedIn
Copyleft, No rights reserved.

Orinoco Tribune needs your help  

This week we have to pay our monthly hostings fees but we are out of funds

If for some reason you see us down this week, that is the reason. 

We will try to resume payments as soon as we can!

Orinoco Tribune needs more support!

3 options below: