{"id":45685,"date":"2019-04-28T06:38:31","date_gmt":"2019-04-28T11:38:31","guid":{"rendered":"https:\/\/olduvai.ca\/?p=45685"},"modified":"2019-04-28T06:38:32","modified_gmt":"2019-04-28T11:38:32","slug":"china-tries-to-muscle-in-on-dollar-as-dominant-payments-currency-but-its-a-thankless-slog","status":"publish","type":"post","link":"https:\/\/olduvai.ca\/?p=45685","title":{"rendered":"China Tries to Muscle in on Dollar as Dominant \u2018Payments Currency,\u2019 But It\u2019s a Thankless Slog"},"content":{"rendered":"\n<h3 class=\"wp-block-heading\"><a href=\"https:\/\/wolfstreet.com\/2019\/04\/26\/china-tries-to-muscle-in-on-us-dollar-as-payments-currency-but-its-a-tough-thankless-slog\/\">China Tries to Muscle in on Dollar as Dominant \u2018Payments Currency,\u2019 But It\u2019s a Thankless Slog<\/a> <\/h3>\n\n\n\n<p><strong>Dollar Hegemony is a tough nut to crack.<\/strong><\/p>\n\n\n\n<p>China is taking another baby step in promoting the internationalization of the renminbi and nibble on the hegemony of the US dollar: It\u2019s pushing a proposal to add a pile of yuan to the $240 billion currency swap agreement between ASEAN plus China, Japan, and South Korea, in order reduce the system\u2019s reliance on the US dollar and to enhance its own economic clout in the region, according to the&nbsp;<a href=\"https:\/\/asia.nikkei.com\/Business\/Markets\/Currencies\/China-lobbies-ASEAN-on-yuan-use-cracking-dollar-dominance\" target=\"_blank\" rel=\"noreferrer noopener\">Nikkei<\/a>.<\/p>\n\n\n\n<p>On May 2, the finance ministers and central bankers of ASEAN \u2013 Singapore, Brunei, Malaysia, Thailand, Philippines, Indonesia, Vietnam, Laos, Cambodia, and Myanmar \u2013 along with those from China, Japan, and Korea will meet in Fiji to discuss modifications to the swap agreement, the Chiang Mai Initiative.<\/p>\n\n\n\n<p>China, which co-chairs the meeting with Thailand, has added language to the draft joint statement concerning use of Asian-currency contributions to the pool \u2013 which for now is still entirely in dollars \u2013 as \u201cone option\u201d to enhance the swap arrangement.<\/p>\n\n\n\n<p>\u201cAllowing participants to access Asian currencies in an emergency could encourage their use in other contexts, including foreign exchange reserves, the thinking goes,\u201d the Nikkei said. \u201cThe idea also anticipates a long-term rise in demand for these currencies in regional investment and trade.\u201d<\/p>\n\n\n\n<p>\u201cChina in particular sees it as another step on the path to internationalizing the yuan and expanding its economic influence in the region. But the proposal is likely to be complicated by U.S. alarm at the prospect of Beijing expanding its currency\u2019s role at the dollar\u2019s expense.\u201d<\/p>\n\n\n\n<p>The Chiang Mai Initiative was a response to the 1997 Asian currency crisis. It consists of a pool of US dollars, contributed by members, that members can draw on when their currencies come under attack. Since its establishment in 2000, the dollar pool has been increased to $240 billion. China is now lobbying the other members to add yuan and yen to that pool.<\/p>\n\n\n\n<p>&nbsp;\u2026click on the above link to read the rest of the article\u2026<\/p>\n","protected":false},"excerpt":{"rendered":"<p>China Tries to Muscle in on Dollar as Dominant \u2018Payments Currency,\u2019 But It\u2019s a Thankless Slog Dollar Hegemony is a tough nut to crack. China is taking another baby step in promoting the internationalization of the renminbi and nibble on the hegemony of the US dollar: It\u2019s pushing a proposal to add a pile of [&hellip;]<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_monsterinsights_skip_tracking":false,"_monsterinsights_sitenote_active":false,"_monsterinsights_sitenote_note":"","_monsterinsights_sitenote_category":0,"footnotes":""},"categories":[2],"tags":[130,7035,827,6278,5482],"class_list":["post-45685","post","type-post","status-publish","format-standard","hentry","category-economics","tag-china","tag-currencies","tag-united-states","tag-us-dollar-hegemony","tag-world-reserve-currency"],"_links":{"self":[{"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/posts\/45685","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/olduvai.ca\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=45685"}],"version-history":[{"count":1,"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/posts\/45685\/revisions"}],"predecessor-version":[{"id":45686,"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/posts\/45685\/revisions\/45686"}],"wp:attachment":[{"href":"https:\/\/olduvai.ca\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=45685"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/olduvai.ca\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=45685"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/olduvai.ca\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=45685"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}