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De-dollarization: Is the US dollar losing its dominance? (2025)

jpmorgan.com

351–360 of 913 posts

Re: De-dollarization: Is the US dollar losing its dominance? (2025)

#351

Earlier quoted context omitted.

This is part of the same reason many people don't use Bitcoin- you can't actually do much with it because retailers don't accept it. But China is definitely thinking about how to fix that problem, and soon they will make it possible to pay directly in CNY in other countries. Once you can buy things with it, the CNY is attractive from a practical perspective. A lot of your stuff is already manufactured in China, once/…

Paying Chinese companies in RMB isn’t the issue. If I sell something and a Chinese company pays me in RMB, I can’t really do anything with a billion yuan. Can’t buy a company (limitations on foreign ownership), can’t buy property (99-year lease that can be canceled on the whims of the government at any time), can’t buy Chinese debt (terrible yields, very small foreign market access, incredibly opaque laws and account…

I mean, you can buy goods and services within china, and you can sell those goods and services. The “horseshit” exchange rate can’t deviate too far from the real value or it incentivises laundering too much. The exchange rate isn’t _that_ bad as a result.

Re: De-dollarization: Is the US dollar losing its dominance? (2025)

#352
post #329

Earlier quoted context omitted.

Your ruler is no longer following the rules of law, nor the foundational constitution. USA ended with their declaration of dictatorship and the failure of your houses/legislature/military to act against that and defend the Constitution. I can't see how, since the end of habeas corpus , you can claim legal stability. Your leader is World renowned for reneging on debts and is demanding bribes for companies to operate.…

Why is this getting downvoted?

My money is that influence campaigns are active on HN and try to mold the discourse. The whole internet is manipulated to hell, and HN is a prime target, you have a bunch of smart people that probably have oversized influence, how could you NOT try manipulating this place?

Re: De-dollarization: Is the US dollar losing its dominance? (2025)

#353

Earlier quoted context omitted.

This is part of the same reason many people don't use Bitcoin- you can't actually do much with it because retailers don't accept it. But China is definitely thinking about how to fix that problem, and soon they will make it possible to pay directly in CNY in other countries. Once you can buy things with it, the CNY is attractive from a practical perspective. A lot of your stuff is already manufactured in China, once/…

Paying Chinese companies in RMB isn’t the issue. If I sell something and a Chinese company pays me in RMB, I can’t really do anything with a billion yuan. Can’t buy a company (limitations on foreign ownership), can’t buy property (99-year lease that can be canceled on the whims of the government at any time), can’t buy Chinese debt (terrible yields, very small foreign market access, incredibly opaque laws and account…

I guess this is naive, but can't you use it to buy (or sell it to people who want to buy) Chinese products? It's not like China doesn't have an enormous amount and range of products on offer.

Re: De-dollarization: Is the US dollar losing its dominance? (2025)

#354

Earlier quoted context omitted.

I don’t think that’s feasible because China’s capital markets aren’t secure for foreign investors and never will be unless China changes the very thing that they want to be. They’d have to open their markets, be open to direct foreign investment, no more China-only ownership of companies, and no more artificial devaluation of the Yuan. Also the US capital market is huge. Surprisingly huge, even, and there is very lit…

Does using the Renminbi require investing in securities? It's a very different thing to trust that China will maintain the value of its currency, than to trust that investment in Chinese companies will remain liquid and not be arbitrarily cut to a price of zero. I'm not saying you're wrong, but I also don't fully understand the need to have grander access to capital markets. Perhaps access to the equivalent of US Tre…

> I'm not saying you're wrong, but I also don't fully understand the need to have grander access to capital markets.

Well if you use the renminbi or yuan as just a medium of exchange, well, why bother when you already have the dollar?

To answer your question better, what is the point of access to capital markets of a country and how does that stabilize or strengthen its currency, or make it more highly sought after?

Re: De-dollarization: Is the US dollar losing its dominance? (2025)

#355
post #235
post #110

Earlier quoted context omitted.

Bitcoin

People downvote this but Bitcoin has some very nice properties: - easy to verify/impossible to forge (as opposed to gold and paper currency) - fixed supply (as opposed to paper currency, oil, and even gold) - easy to transfer from one party to another (as opposed to gold, oil, and physical cash)

It’s dumb because it requires uninterrupted access to an incredibly complex system. The cognitive dissonance of people who see bitcoin as resilient is hilarious.

Re: De-dollarization: Is the US dollar losing its dominance? (2025)

#356

Earlier quoted context omitted.

This is part of the same reason many people don't use Bitcoin- you can't actually do much with it because retailers don't accept it. But China is definitely thinking about how to fix that problem, and soon they will make it possible to pay directly in CNY in other countries. Once you can buy things with it, the CNY is attractive from a practical perspective. A lot of your stuff is already manufactured in China, once/…

Paying Chinese companies in RMB isn’t the issue. If I sell something and a Chinese company pays me in RMB, I can’t really do anything with a billion yuan. Can’t buy a company (limitations on foreign ownership), can’t buy property (99-year lease that can be canceled on the whims of the government at any time), can’t buy Chinese debt (terrible yields, very small foreign market access, incredibly opaque laws and account…

Thats a feature not a bug.

The Chinese government spend a lot of money keeping the value of the RMB low.

Re: De-dollarization: Is the US dollar losing its dominance? (2025)

#357
post #321

Curious how HN is using this information to plan your investing approach. Does the typical approach, broad market globally diversified still hold assuming dedollarization?

You do get World excluding USA ETFs yes - including denominated in say EUR.

It does risk missing out on AI though (or AI crash depending on your perspective).

Re: De-dollarization: Is the US dollar losing its dominance? (2025)

#358
post #44

Earlier quoted context omitted.

[flagged]

I've been trying to read more about investing properly recently and this is such an annoying characteristic of most advice you read. Sometimes it's also "well, economic theory says this, and that doesn't follow the behavior of these markets, so decide for yourself".

What else would you expect? If the person writing the advice knew how to reliably beat the market they would be doing that, not writing financial advice.

Re: De-dollarization: Is the US dollar losing its dominance? (2025)

#359
The USD's status as a reserve currency is directly linked to it's trade deficit with the rest of the world. Because all other entities (individuals, corporations, organizations) want to keep their wealth in USD, there's a strong incentive to sell (goods, services, infrastructure) to the US and obtain USD in return. Conversely, there's a strong disincentive to buy from the US because goods have to be paid for with USD, which means parting with the very currency one is trying to accrue.

One of the most effective ways to ease the trade deficit is to reduce USD's status as a reserve currency.

Re: De-dollarization: Is the US dollar losing its dominance? (2025)

#360
post #217

Earlier quoted context omitted.

> Additionally, we've now seen the EU survive the departure of a major economic power (the UK). I don’t really understand the impact of Brexit on the euro, as Britain wasn’t on it. But clearly they were a key part of the EU. It’ll be interesting to see which side regrets the move more.

The answer is already clear: Britain regrets the move more. In June 2025, 56% of people in Great Britain thought it was the wrong decision: https://www.statista.com/statistics/987347/brexit-opinion-po... It's hard to imagine this number would be going down after recent events like USA suddenly threatening arbitrary new tariffs on the UK.

>In June 2025, 56% of people in Great Britain thought it was the wrong decision

It's not so clear when you consider that 48.1% of the original referendum voters wanted to stay in the EU. I'm honestly very surprised by this poll, 8% change is pretty minimal considering the turmoil the country has gone through since 2016.

How much of this can be explained by older voters dying in the intervening 10 years, I recall that demographic skewed much more heavily Leave in 2016

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