News for hackers. Stuff that matters.

A comment on Reasons the banking crisis isn’t a repeat of 2008. Parent comment

Re:Reasons the banking crisis isn’t a repeat of 2008 by TexanFeller on Saturday March 25, 2023 @02:13AM (#35299987)
The yuan may be the competition we should fear. Since we disconnected Russia from our financial systems, Russia is willing to do business with our biggest rival, China, in their currency.
[ Parent | on HN ]
[dead]
Re:Reasons the banking crisis isn’t a repeat of 2008 by refurb on Saturday March 25, 2023 @10:39AM (#35303065)
Im not sure you understand what reserve currency means.

When Korea buys something from Japan, they don’t have to pay in USD. They can use whatever currency they want.

[ Parent | on HN ]
Re:Reasons the banking crisis isn’t a repeat of 2008 by pjc50 on Saturday March 25, 2023 @06:12AM (#35301196)
The yuan has capital controls. You can't move money freely in and out of China even (especially) if you're a Chinese national. Absolute non-starter for any kind of reserve currency idea.
[ Parent | on HN ]
Re:Reasons the banking crisis isn’t a repeat of 2008 by dtech on Saturday March 25, 2023 @06:34AM (#35301298)
For now. China has been actively working on making the yuan a world reserve currency [1], including relaxing the controls if it is adventageous.

[1] https://finance.yahoo.com/news/putin-strengthening-yuan-role...

[ Parent | on HN ]
Re:Reasons the banking crisis isn’t a repeat of 2008 by refurb on Saturday March 25, 2023 @10:36AM (#35303046)
That would require a wholesale change in the way the Chinese government wields it power.

Money flees China now despite the capital controls.

Even the Chinese would rather keep their money in Singapore, Switzerland or the US than at home.

[ Parent | on HN ]