The trade war with the United States may soon hit China where it hurts, making it hard for Beijing to satisfy its voracious appetite for natural resources.
In normal times, China has a couple of ways to get dollars.
Another way to stock up on dollars is for the People's Bank of China to simply sell yuan to purchase dollar-denominated government bonds issued by Washington.
Eventually, China will have to lure in international traders if it wants to push the yuan onto the global stage.
In even better news for China, Saudi Arabia is expected to start accepting the yuan as payment for oil exports to China soon.
Based on its success with iron ore and initial success with oil, China will likely allow international participants to trade in a wider range of yuan-based commodity futures soon.
The problem for China is that the yuan is still a long way from being accepted as a global currency.
https://foreignpolicy.com/2018/10/18/chinas-dangerous-dollar-addiction/
In normal times, China has a couple of ways to get dollars.
Another way to stock up on dollars is for the People's Bank of China to simply sell yuan to purchase dollar-denominated government bonds issued by Washington.
Eventually, China will have to lure in international traders if it wants to push the yuan onto the global stage.
In even better news for China, Saudi Arabia is expected to start accepting the yuan as payment for oil exports to China soon.
Based on its success with iron ore and initial success with oil, China will likely allow international participants to trade in a wider range of yuan-based commodity futures soon.
The problem for China is that the yuan is still a long way from being accepted as a global currency.
https://foreignpolicy.com/2018/10/18/chinas-dangerous-dollar-addiction/
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