Why is the renminbi not enough to replace the dollar?AIIB President Jin Liqun s unique insights

Mondo Finance Updated on 2024-01-28

Is the US dollar or the yuan more suitable to be a competitor to international currencies?The head of the AIIB, Jin Liqun, expressed his opinion on this, arguing that the renminbi cannot replace the dollar, but rather serves as an auxiliary to it. Jin Liqun is one of the 40 returnees in the 40 years of China's reform and opening up, and is also a member of the Monetary Policy Committee of the People's Bank of China and the China Counter-Terrorism Committee. He stressed that the international influence of the US dollar far exceeds that of the renminbi, and that the renminbi seems to be out of reach to replace the US dollar. Despite all the problems with the dollar, it is still a world currency, and the yuan cannot replace it. Jin Liqun pointed out that the increased importance of the renminbi does not mean that the dollar can be expelled, but that it should work more closely with the dollar and other currencies to maintain international and investment order.

In addition, Jin Liqun pointed out that once the dollar is **ized, it will no longer be a public good, but a tax. The ** of the dollar has made it a kind of global seigniorage, and we have unwittingly become the target of harvesting. Jin Liqun translated "The Morgan Consortium" to study the history of Wall Street, which helped people understand the ins and outs of the development of modern financial industry in the United States. The emergence of giant industrial trusts once monopolized the US economy, but this was not actually a victory for industrial tycoons, but marked the rise of Wall Street led by Morgan. The Morgan consortium exerted tremendous energy in the process, helping the United States seize global hegemony.

The controllers of the US ** banks are the super conglomerates, they control the Federal Reserve, print dollars like crazy, a million profits, and the US ** is just a tool for them to harvest the wealth of the world. In the face of the behind-the-scenes manipulation of these giant conglomerates, it is completely unrealistic to expect the United States to go bankrupt. However, we cannot expect the dollar to "fail on its own", this is a completely wrong idea. The biggest advantage of the renminbi over the dollar is the best advantage, and we must use our own advantages to fight against the dollar. In today's world, technological and military "endorsements" are essential to a country's currency. We can love peace, but we must show our swords at critical moments to provide the strongest support for the RMB.

At present, we are not talking about surpassing the US dollar, but we must go all out to boost the international value of the RMB. Only when more and more countries begin to like to use the renminbi can it really help the renminbi to quickly achieve global circulation.

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