Yuan vs Dollar: Which Will Win?

On Wednesday September 5, the website of the Russia Today Channel published a brief note about the Keizer Report show dealing with news and financial analysis and focused on the tariff and sanction war which Washington has triggered and affects more countries every day.

Max Keizer, reporter and presenter on the show, spoke of the unfortunate and long-standing propensity of the United States to use the dollar as an economic weapon of war against other countries with his guest Alasdair Macleod, director of research for the GoldMoney.com website.

According to this economic analyst, despite the fact that the United States knows\ that the global financial system has not yet found an alternative to the dollar, they abusively use it to serve their own interests.

“To all the other nations that rely on the dollar to arrange their cross-border trade, the United States is actually sending a message that their approach is not very secure, and that they should have an alternative.”

Subsequently, Alasdair Macleod cites the example of China, which he believes will inevitably turn to the yuan for trade, at least inside Asia. He declares:

“China has been accumulating gold for a long time in order to reserve the possibility of supporting its national currency.”

Indeed, according to this expert on economic issues, China’s gold reserves far exceeds 1842 tons; the number officially announced by his government.

Recall that the desire of the Middle Kingdom to achieve independence from the dollar is not dated today but rather it dates back to 1983. And, to do so, it has diversified the use of foreign currency in its cross-border trade and since then, this country has accumulated more than 20,000 tonnes of gold, says Macleod, adding:

“Once China decides to support its national currency, the yuan, using its gold reserves, it could destroy the US dollar. “

We know that the tenant of the White House has threatened to block Chinese imports since the beginning of the year. In mid-June, he put his threats into effect by announcing the implementation of the first series of surcharges of 25%, and $50 billion of goods or 1102 products.

It is obvious that Beijing’s response was not long in coming. Indeed, a few hours later, its reply was to in turn overtax 659 US products. The direct consequence of all this delicate situation reveals that the tensions between the two countries are far from calming down.

It is useful to remember that on Thursday, August 23, the Chinese Ministry of Commerce announced that its country had made a complaint to the World Trade Organization (WTO) against the United States for imposing new tariffs on Chinese products. This complaint was followed by two days of tough negotiations between Washington and Beijing, which ultimately did not yield to a result on the trade war between the two economic powers especially after the United States decided to impose new Customs tariffs on Chinese products.

Turkey, too, has challenged US’ steel and aluminium taxes at the WTO. Recall that the economic war undertaken by Trump does not even spare the European allies of Uncle Sam.

For its part, Russia has also lodged a complaint with the World Trade Organization against the United States for violating the regulations of the international institution.

It must be acknowledged that American foreign policy is experiencing a worrying decline, especially since Trump’s rise to power.

The thoughtless, unilateral and unfriendly decisions that he makes and executes on his allies and others harm him greatly as well as the image his country which is losing popularity and gaining hostility from around the world.

Is it not time that he put an end to these acts which are unworthy of a political leader?

Are there no responsible members of his entourage which can reason with him?

By pulling the rope, it will undoubtedly break in the end!