Deutsche Bank becomes first foreign yuan clearing bank in Europe

Post by Normal_gaussian » Thu, Aug 13, 2026, 1:18 PM UTC

budsniffer952 wrote: post #77

pizzathyme wrote: post #22

The US wields incredible negotiating power and hegemony because the dollar is the world’s reserve currency. Like the British pound and the Dutch guilder before it, if that loses reserve currency status it will be harder to borrow on favorable terms, which would affect the entire US economy. This is a big step in that perhaps starting to happen over the next few decades.

Losing the reserve currency doesn't happen in a vacuum. It happened to the British and Dutch because their empires were dismantled. So, yeah, it could happen to the US, slowly, over time (it already is). But nobody wakes up tomorrow and says they no longer want USD. Where are you parking the money, yuan?

Post by thelastgallon » Thu, Aug 13, 2026, 1:19 PM UTC

jillesvangurp wrote: post #57

pizzathyme wrote: post #22

The US wields incredible negotiating power and hegemony because the dollar is the world’s reserve currency. Like the British pound and the Dutch guilder before it, if that loses reserve currency status it will be harder to borrow on favorable terms, which would affect the entire US economy. This is a big step in that perhaps starting to happen over the next few decades.

One consequence of the transition to renewable energy and electrified transport, is that oil imports will start to decline. And the dollar is of course the currency of choice for that. The US economy and other countries that export fossil fuels will feel the impact over the next decade or so. The energy transition might go a lot quicker than people seem to expect. Currently about 20% of global car sales is electric.…

Post by mytailorisrich » Thu, Aug 13, 2026, 1:20 PM UTC

xingped wrote: post #30

avisser wrote: post #19

Is it a yuan or is it a Renminbi?

It's a little confusing, but technically RMB (renminbi) is the official name of the currency and CNY (yuan) is the base unit of the currency. Think of it like the difference between USD ("US Dollar") vs "dollar and cents", except there is no fractional yuan equivalent of cents, so it's all just yuan.

Post by hk__2 » Thu, Aug 13, 2026, 1:21 PM UTC

glimshe wrote: post #18

rvz wrote: post #10

Earlier quoted context omitted.

It means the dollar is dying.

People have been saying the dollar is dying since the 19th century. They said it again during the Great Depression, the end of Bretton Woods and the 2008 Financial crisis..

Post by LarsDu88 » Thu, Aug 13, 2026, 1:22 PM UTC

JimmyBuckets wrote: post #43

iugtmkbdfil834 wrote: post #4

Earlier quoted context omitted.

Can you elaborate a little? I suspect it is a well known concept, but its the first time I heard of it in this context.

Essentially its the idea that the interaction between an incumbent power and rising "challenger" power inevitably leads to war between the two. I was expressing my hope that if this does happen, the war can play out in less destructive arenas - one of which is in the competition for reserve currency status which the US has held for the whole of the modern era. This article possibly points at China's first shots in th…