Hacker News Board Hacker News, browsed like a classic message board
Live data from Hacker News

Europe’s central banks are starting to replace dollar reserves with the yuan

qz.com

Post reply on HN
Print view View original

231–240 of 257 posts

Re: Europe’s central banks are starting to replace dollar reserves with the yuan

#231

Post by emodendroket »

foepys wrote: post #49
kuschku wrote: post #41

Earlier quoted context omitted.

We only have ourselves to blame for that. Had we actually created a federal Europe, we would have been the ones profiting off of this. Now, instead, it's China, and we're still not getting anywhere.

You cannot just "create" a federal Europe. This naive view is why the Middle East is in a constant state of looming (civil) war. British and French colonists drew state lines without considering tribes and cultures and now those tribes are fighting over control in countries they don't even want to be a part of.

I don't think it's wrong to say that that was the original goal of the EU though.

Re: Europe’s central banks are starting to replace dollar reserves with the yuan

#232

Post by MichaelMoser123 »

slivym wrote: post #78
sremani wrote: post #33

>>In June, the European Central Bank announced that it had exchanged €500 million ($611 million) worth of US dollar reserves into yuan securities. This was a small shift—the ECB has €44 billion in foreign exchange reserves Before declaring fall of USA, blaming Trump for apocalypse and anointing Xi as the new Emperor, lets take step and really see the numbers. $611 million is a marginal amount when we are talking abou…

This is kind of ridiculous. The purpose of reserves is not to send political messages. It's to provide a mechanism to manage monetary policy and it does that through buying back its liabilities. To do this effectively you must hold a strong currency as your reserve- there's no point holding Zimbabwe dollars. So any reasonable reserves for a European country today will be part Dollar, Pound, Yen and Yuan. How much of…

It is hard to say much of substance on macro economic stuff - because all knowledge in this area is not within the realm of personal experience of any person. I therefore find it hard to trust anybody on such issues.

Re: Europe’s central banks are starting to replace dollar reserves with the yuan

#233

Post by emodendroket »

NicoJuicy wrote: post #34
jv22222 wrote: post #16

Is this shift in any way related to Trump, or would it be happening right about now anyways?

I think that how we perceive/admire? America has greatly declined since Trump. America has been unable to even talk with America's business, internally in the white house, within Republicans, others (eg. who has the biggest button, NATO, Paris Climate, ...), ... I'm pretty sure he's guilty to everything that is said ( Eg. Russians, money-laundering, paying zero taxes, ...) How do you think such idiocracy is perceived…

The continuity with Trump is a lot more significant than a lot of takes would have us believe, though. He's just a symbol of deeper systemic issues which aren't even confined to the US.

Re: Europe’s central banks are starting to replace dollar reserves with the yuan

#234

Post by ameister14 »

dogma1138 wrote: post #171
ameister14 wrote: post #157

Earlier quoted context omitted.

I think a lot of the problem is I can't trust your reputation unless I know you or you have some other proven characteristics to help create that trust. There are a few people on HN like that, but it's rare. In real life if you present an opinion I know what you do for a living and potentially how educated that opinion is. On the internet I don't. That means that if you're an econ PhD and you tell me a basic statemen…

No one said anything about trusting an opinion or a presented fact, you should always do your own research that's the point. On a more anecdotal side the people I tend to "trust" the least at least on the internet are those who often come out with citations for everything and dump a huge wall of text. The problem with the internet is that you can find a citation for everything, I can find that enough citations that l…

So, you object to people asking for citations because citations suck? The problem then comes back to how to know which to trust, which usually requires a reasonable degree of proficiency in and knowledge of the subject.

My point was partially that if I encounter you in another environment, I can quickly and easily assess whether you have the required proficiency, even if I don't possess it. It's much harder to do that online, at least at the moment.

I can't always do my own research, as I don't have the time to build a framework of knowledge that would allow me to do it efficiently, much less brute force it. All I can do is ask people I know who are very well educated in a field or read an abstract.

Re: Europe’s central banks are starting to replace dollar reserves with the yuan

#235

Post by tanilama »

mc32 wrote: post #7

I like Japan --I think for a mid-sized country they have done well for themselves... but their representation in foreign reserves is a bit outsized. The Yuan, given China's economic strength, has nowhere to go but up. We'll have to see how European Central banks like that in 10-20 years when they exert more influence on policy.

Japan has bigger population and economy than even Germany.

Re: Europe’s central banks are starting to replace dollar reserves with the yuan

#236

Post by guitarbill »

stale2002 wrote: post #218
PietdeVries wrote: post #208

Earlier quoted context omitted.

Exports of what? iPhones? These are all made in China, and with the dollar dropping against the Yuan, anything the US imports from China (and also from Europe) will be getting more expensive. And with the dollar dropping, bonds in dollars will be less interesting for investors. Basically, the article suggests that where Trump is aiming to MAGA, the entire opposite seems to happen: the rest of the world accellerates w…

No. Even better. Exports of America's best product, which is our information economy. We give the world informational products and they send us physical goods. Seems like a good deal to me.

Might change quite quickly depending on Microsoft v. DoJ

Re: Europe’s central banks are starting to replace dollar reserves with the yuan

#237

Post by tanilama »

mjpuser wrote: post #113

I need HN’s help... What benefits do countries/governments/politicians get when their currency becomes internationally accepted?

Printing money without worrying about inflation, so much bigger buying power.

Re: Europe’s central banks are starting to replace dollar reserves with the yuan

#238

Post by dogma1138 »

gcb0 wrote: post #176
dogma1138 wrote: post #167

Earlier quoted context omitted.

Things are much more complicated than this, but essentially China as a primary exporter wants to keep the value of it's currency as low as possible since the exporters then benefit on exchange rates. It also wants stability so it basically pegs the Yuan to the dollar, historically directly and more recently in directly (the Chinese central bank sets more or less of a fixed exchange rate but it does allow it to deviat…

but isn't buying bonds only useful if you want to return those USD with the prospect of getting more back later on (ideally above inflation)

Only if you actually cash them bonds can also be effectively traded.

Re: Europe’s central banks are starting to replace dollar reserves with the yuan

#239

Post by BrandoElFollito »

emodendroket wrote: post #227
swarnie_ wrote: post #210

Earlier quoted context omitted.

Do you make any cars which are viable in Europe?

I'm not sure who "you" is here but, yes, lots of American cars are sold in Europe.

"lots" would need to be quantified. Mentally scanning the garage at work, I do not think I saw one American car (France, very large company).

I casually glanced through a few Google images matches for "traffic in Paris". I do not know much about cars but all seemed to be European or Japanese.

Re: Europe’s central banks are starting to replace dollar reserves with the yuan

#240

Post by StanislavPetrov »

kylell wrote: post #6

this is also an effect of US isolationism and America first rhetoric which also means abandoning other states, eg. Ukraine, when the US loses its influence/importance so does the dollar, meaning you can't print like crazy and export your inflation in the world.

>this is also an effect of US isolationism and America first rhetoric

This is completely backwards.

>meaning you can't print like crazy and export your inflation in the world.

This is why other countries are moving away from the US dollar as the reserve currency (and the petrodollar as a medium of exchange for oil and other commodities). For decades we have been coercing countries, both kinetically (Iraq, Libya) and through less violent means (economic threats, access to SWIFT, ect) to use the dollar. Much of the rest of the world is tired of being coerced into using the dollar (and by extension, propping up the dollar and the US financial system through artificial demand for dollars) when alternatives (such as the Yaun) are becoming available. Much of our crazy printing and exportation of inflation has come exactly because of the countless trillions we have wasted (in the last 15 years alone) in our fruitless and amoral attempt to control the world at the point of a gun. Ironically, and not coincidentally, our desperate (and costly) attempts to maintain control of the globe are hastening the decline of our influence, both politically and economically.

Post reply on HN