The share of USD-denominated foreign exchange reserves fell to 57.4% of total exchange reserves the lowest since 1994, according to the IMF’s COFER data for Q3 2024. USD-denominated foreign exchange reserves include US Treasury securities, US agency securities, US MBS, US corporate bonds, US stocks, and other USD-denominated assets held by central banks other than the Fed.
pull down to refresh
related posts
41 sats \ 0 replies \ @Bell_curve 22h
You need to stop using gas stoves or we will freeze your assets and asses!
reply
104 sats \ 4 replies \ @Coinsreporter 6 Jan
It's okay but there's still not a single currency in the world except Euro that's even succeeded to climb up to 2 digits in %share.
It's unlikely that dollar is gonna lose its throne in around another 50 years, maybe after that but that would need a more serious effort by India and China to establish a joint currency with so many other nations.
reply
0 sats \ 3 replies \ @Solomonsatoshi 6 Jan
China already dominates trade in commodities and manufactured consumer goods.
No country can afford not to trade with China.
China is already demonstrating that it can facilitate ongoing trade with countries that are sanctioned from SWIFT. Iran and Russia would not be viable let alone able to wage war on the west without Chinas ongoing purchase of their exports, supply of imports and arrangement of payment outside of SWIFT.
The USA is no longer dominant or even competitive in manufactured goods. It is entirely reliant on its USD monetary hegemony and the seigniorage and interest this delivers.
Without USD hegemony the USA would be very swiftly Insolvent.
Its not a time span of 50 years but more like 5-10 that we are talking about.
If another major oil producer (Saudis?) switches from USD to Yuan payments then the USD could lose hegemony very soon...and anyway the trend is already established and the trend is decline of USD and movement toward Chinese dominance.
Monetary hegemony has always derived from dominance in trade.
reply
0 sats \ 2 replies \ @Coinsreporter 6 Jan
It's not that you should only be looking at manufacturing cheap tech to export by China. India is slowly getting traction as a competition to chinese cheap tech production.
Until or unless china gets support from other economies, yuan isn't even going to reach double digits.
5-10 years is a very short duration to challenge the hegemony of USD. It's simple because Yuan (China) is struggling to make an impact as acceptable as Dollar (USA) has.
reply
0 sats \ 0 replies \ @Solomonsatoshi 6 Jan
This may help explain ~
https://unctad.org/topic/trade-analysis/chart-10-may-2021
reply
0 sats \ 0 replies \ @Solomonsatoshi 6 Jan
How much of the trade using Yuan is even recorded by US proxy institutions like the IMF?
Russia is now dependent upon China both as a buyer of its oil and gas and as a supplier of manufactured goods and as a facilitator of payments for these trades.
Russia is now providing China with nuclear submarine technology.
India and Russia have a long standing mutual trade role so with Russia now dependent upon China India is also drawn into Chinas sphere.
India is not a focused economy or political entity - it is more preoccupied with its own internal problems and tension with Pakistan than being capable of wider power projection let alone strategically significant international trade.
China does not need the explicit support of other economies it is rather the converse- all nations need trade with China or they will suffer significant economic loss.
China is incrementally reverse engineering the global monetary system, via the portal through which the west originally imposed its hegemony, Hong Kong. It may take some time but it is already in progress.
Certainly China is in no hurry to see the transition as a gradual transition is less likely to be disruptive but it has to be noted that China and the US are currently at war, by proxy, in multiple locations across Ukraine and the middle east.
Chinas demonstration that it can support Iran and Russia even when they have been sanctioned by the mighty US, and that Iran and Russia can still engage in significant and ongoing attacks on US allies does not go un-noticed, except among those who do not wish to see.
reply
131 sats \ 2 replies \ @Undisciplined 6 Jan
I'm curious if Trump's "Use dollars or get tariffed!" threats will lead to a short-term tren reversal. I won't be surprised if it backfires and accelerates the trend, like the Russia sanctions.
reply
52 sats \ 0 replies \ @7e6e393a56 6 Jan
Trump threatened, but it was China that sanctioned 10 American companies. Among the companies are General Dynamics, Boeing, Lockheed Martin and Raytheon, all in the defense, technology and aviation sectors.
reply
0 sats \ 0 replies \ @Solomonsatoshi 6 Jan
US exceptionalism is common among Libertarians who cannot accept that China with a strong central government role in the economy now dominates global trade.
There is no nation that can afford not to trade with China without losing significant economic advantage.
The USA cannot declare war on China because so many of the USAs top corporates are dependent upon China supply chains and declaration of war would result in their insolvency.
USA is dependent upon its USD hegemony and that hegemony is in decline because USA no longer dominates global trade.
China sets the commodity price and China sets the prices of manufactured goods.
USAs corrupt crony capitalism addicted to financialised leveraged monetary hegemony is losing to Chinas centrally planned free market hybrid mercantile strength.
Libertarians cannot see how state power projection is such a crucial factor in the wealth of nations.
reply
41 sats \ 0 replies \ @Msd0457890 6 Jan
I think the fact that a Pro-Bitcoin president won the elections in the United States and realizing that many countries, including China, El Salvador, and Argentina, have created or supported Bitcoin as a strong currency or asset that has helped them strengthen their economies,this has meant that the dollar is no longer or is no longer considered as valuable as before, although it is still present in many economies.
reply
61 sats \ 2 replies \ @Solomonsatoshi 6 Jan
Unlikely that the US controlled IMF even has data on Yuan denominated trade between China and Russia, Iran and N.Korea and a growing number of other nations who trade on a bilateral basis with China outside of the IMF/SWIFT US hegemony.
reply
0 sats \ 1 reply \ @7e6e393a56 14h
Taiwan needs to open its eyes, otherwise it will become Ukraine
Famous quote by Henry Kissinger
"It may be dangerous to be America's enemy, but to be America's friend is fatal"
reply
20 sats \ 0 replies \ @nym 14h
Interesting
reply