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(Business Insider)   China orders its banks to dump the dollar   (markets.businessinsider.com) divider line
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    More: Facepalm, Central bank, Federal Reserve System, offshore yuan, Monetary policy, Currency, Bank, Foreign exchange reserves, Dollar  
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1179 clicks; posted to Business » on 04 Oct 2022 at 5:18 AM (25 weeks ago)   |   Favorite    |   share:  Share on Twitter share via Email Share on Facebook



10 Comments     (+0 »)
View Voting Results: Smartest and Funniest
 
lindalouwho [TotalFark] [OhFark]
2022-10-04 5:56:05 AM  
I don't understand how exchange rates in different countries vary.
For instance, google tells me this morning one dollar equals 7.2 yaun, but the exchange rate with the euro is only 1.01.
 
dionysusaur [TotalFark]
2022-10-04 6:28:19 AM  
Some major farkery is afoot.
 
AsparagusFTW
2022-10-04 7:30:50 AM  
Good. Fark us. Let the currency wars begin.
 
Arkanaut
2022-10-04 7:43:08 AM  
Did Dark Brandon get China to help us reduce our inflation?
 
Xetal
2022-10-04 7:49:49 AM  

Arkanaut: Did Dark Brandon get China to help us reduce our inflation?


Would this do the opposite though?

Competitively strong American dollar means cheap imports (and more expensive to export) right? China doing this makes their currency stronger and ours a bit weaker- so good for our ability to export our products, but increases what we pay for imports (driving inflation up).

Somebody correct me if I'm wrong, my understanding of all this is not the greatest.
 
keldaria
2022-10-04 8:16:14 AM  

Xetal: Arkanaut: Did Dark Brandon get China to help us reduce our inflation?

Would this do the opposite though?

Competitively strong American dollar means cheap imports (and more expensive to export) right? China doing this makes their currency stronger and ours a bit weaker- so good for our ability to export our products, but increases what we pay for imports (driving inflation up).

Somebody correct me if I'm wrong, my understanding of all this is not the greatest.


It depends who China is buying the dollars off of. It might only somewhat stabilize their currency against the USD if other countries/currency holders are just as eager to dump Yuan to buy Dollars.
 
Marcus Aurelius [TotalFark] [OhFark]
2022-10-04 8:58:46 AM  
They're trying to bolster the Yuan.  All currencies are falling against the dollar.  It's the end of the debt super cycle, and the dollar is turning into a black hole, sucking down global liquidity.  It will end badly.
 
Arkanaut
2022-10-04 9:08:43 AM  

Xetal: Arkanaut: Did Dark Brandon get China to help us reduce our inflation?

Would this do the opposite though?

Competitively strong American dollar means cheap imports (and more expensive to export) right? China doing this makes their currency stronger and ours a bit weaker- so good for our ability to export our products, but increases what we pay for imports (driving inflation up).

Somebody correct me if I'm wrong, my understanding of all this is not the greatest.


No you're right, I was just thinking that this was a policy reversal for the Chinese government, but I forget that their policy was to promote exports and not to avoid capital flight.

I hadn't had my coffee yet, too early to think about foreign exchange.
 
jso2897
2022-10-04 9:11:51 AM  
Fake.
Won't work.
 
MadHatter500 [OhFark]
2022-10-04 9:51:30 AM  
Paging George Soros, paging George Soros, please call the currency trading desk immediately.

If China can't be assed to read up on what happened to the Bank of England when they attempted to defend the pound for political reasons... they deserve to be the corpse our first trillionaires rise from.
 
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