Ananda said:
Clearly you are talking nonsense again.
I was writing by memory, but thanks to you, the link you provided confirmed what I said.
dw.com said:
Saudi Arabia is selling oil and gas to China. They get renminbi, which can be used to buy Chinese goods or to invest in China, which the Saudis have already done. It's a barter trade,
It doesn't say that they can use it to buy USD. And he is talking about Saudi Arabia, a country not under sanction.
Even countries not under sanction are paid in Yuans that allow them to buy things in China but doesn't allow them to buy currencies freely on international market (maybe they can but not on the market and not freely).
It is like that now, not 30 years ago.
And the reason is explained below:
dw.com said:
Despite moves by Beijing to internationalize, the Chinese currency is not yet fully convertible with other global currencies, which experts say is vital for it to become a reserve currency. Beijing maintains capital controls that restrict the free flow of capital in and out of the country.
In reality, it's possible to buy and sell USD with CNY on Chinese exchange but these CNY or USD bought with CNY can't leave the country unless you want to import something into China or, as a foreign investor or business in China, to repatriate profits from China to your own country. Moving profit out of China is regulated, difficult, and not to be taken for granted.
It's possible to trade CNY against other currencies, almost freely, on global markets, including western ones, in small amounts. Not by hundred of million dollars, and certainly not by the billions. This is allowed because the Bank of China allows CNY foreign trading in a limited and controlled manner.
Ananda said:
So that's mean they don't need as much as they used too.
That's what I said. As long as the regime hold their grip on power and is able produce 3 million artillery shells to destroy Ukrainian cities, they don't need anything.
Ananda said:
The Non Western currencies they hold can still be converted to Western ones as much as they need to, on other Non Western Market they still have access too. Especially in HongKong, Shanghai or Dubai.
No because the banks in HongKong, Shanghai or Dubai don't want to be struck be US sanctions, on top of inherent restriction on CNY trades by the Chinese government.
I know that Russian oligarchs are using their off shore dollars and possibly changed some RUB or even CNY to USD in Cyprus thanks to Cyprus and the EU tolerating it as long as the money stays mostly in Cyprus and the amounts are reasonable. They don't want the Cyprus economy to crash because Russian oligarchs can't pay for their stay there anymore.
If you think that I'm wrong, please provide evidence that Russia has bought a meaningful amount of USD with the CNY they got from China since mid 2022.
I will be more than glad to correct myself.
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Ananada said:
Trump threatening BRICS that they will got 100% tariff they replace USD as Global Reserve.
Trump, once again, is off base and tells things that will worsen US relations with BRICS countries, uselessly, just because he says stupid things.
You said:
However it could be sign that Trump want to bargain and find compromises.
Could this also sign to Russia that he is open for negotiations on financial market access ?
Giving his past record and his past policies and past speeches on China and Latino countries, it's very unlikely. He hasn't changed since.
I would not see this extraordinary agressive statement to be an overture for political settlements with pro-Russia non-alligned countries.
The West or Biden didn't
weaponize the USD. They just applied sanctions that were obvious and widely expected when Russia invaded Ukraine.
Saying that the West weaponize while Russia is in war economy to destroy and invade another country is ridiculous. Of course we weaponze: Russia is an aggressor country, killing people, reducing entire cities into ruins, threatening peace in Europe. Nobody expected that we would stay idle, watching without reaction in our recliner armchair. There is a war going on, by God's Sake.
As I said before, at the risk of repeating myself, I don't think that Global South leaders are moron enough not to understand that.
They don't want to apply sanctions, not because they want to oppose the West, but because they want to buy cheap Russian oil. In fact Russia is a dwarf in the BRICS in term of economy and demography, and now even in term of military power where they lost all the prestige they had. Their only relevancy is the ability to provide oil cheaper than on regular markets. Those who apply sanctions also buy cheap oil indirectly but sometimes directly, and they buy gaz directly, in lesser quantities, but they don't get the private discount those who posture as "neutral" or pro-Russia enjoy.
