China's De-Dollarization Accelerates as Its US Treasury Holdings Tumbles to 14-Year Low
China's
holdings of U.S. Treasury securities fell to US$835.4 billion in June -
its lowest since May 2009 - from US$846.7 billion the previous month,
according to latest data released by the U.S. Department of the
Treasury.
The data came ahead of the upcoming BRICS 2023 summit scheduled to be held in South Africa from August 22 to 24.
BRICS,
an emerging-market group that includes Brazil, Russia, India, China and
South Africa, renders a powerful force in propelling the
de-dollarization process.
The BRICS members have been striving to
settle more trade in their own currencies over recent years as part of
broader efforts to gain economic clout and counterbalance the hegemony
of the US dollar.
Singapore's inventory of U.S. Treasury debt
dropped US$15.1 billion to an 8-month low of US$187.1 billion in June,
from US$202.3 billion in May, as concerns prevail over the US' ability
to repay its ever-ballooning national debt, which has already mushroomed
alarmingly to nearly US$33 trillion.
Anonymous
3 comments:
How slow de-dollarisation takes place is not instrumental. The important thing is for countries in BRICS to keep the momentum going, by entering into more deals and avoiding using the US$ as much as possible. When that happens, countries need not have to keep huge reserves in US$ and therefore continue to cannibalise the domination of the US$ in global trade.
The US$ already suffered a 20% decline in usage over the last two decades, with the decline expected to exacerbate more significantly after the Ukraine War, with the sanctions against Russia and the seizure of Russian US$ assets. Keeping too much US$ is becoming a risk and raises the question of 'who is next'? Let the Anglo Saxon countries die for the USA and leave them alone upping their support for the US$.
The USA will never be able to have the ability to pay its debts. That is a certainty and any concern about that problem is futile. If they continue to hold the privilege of printing money out of thin air till kingdom come, nothing is going to stop their debts from ballooning to US$100 trillion or a quadrillion, or a quintillion or a sextillion.
US Treasury Officials Shit-scared about mBridge, the BIS’ Digital Interbank Payment System
Cross-border payments, which the US dollar dominates, will reach $250 trillion by 2027, up $100 trillion in a decade. There’s just no stopping it.
The trouble is that international payments are slow and costly, and Washington’s ‘long-arm’ jurisdiction over all dollar transactions has politicized trade.
So Basle’s Bank for International Settlements came up with mBridge.
mBridge, the BIS’ digital interbank payment system, lets Chinese companies pay UAE vendors in digital e-yuan. The mBridge blockchain instantly converts the yuan payment into dirham and and credits it to the vendor’s UAE bank account. mBridge 6-8 ms. execution time and 2.2¢ transaction cost bring Beijing’s goal of frictionless trade a giant step closer.
And best of all? No US regulators, banks, or dollars are involved.
The PBOC (the world’s richest central bank), the HK Monetary Authority, Bank of Thailand and the UAE Central Bank have been using mBridge with traders in China, Hong Kong, Thailand and the UAE for over a year.
Now BIS says it will release mBridge globally by Xmas.
US Treasury officials worry that mBridge will help Beijing revolutionize wholesale cross-border digital payments, and that this is what will happen with all of China's 143 trading partners:
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