The yuan is not a threat to the US dollar because China is not a predictable or reliable market, former Treasury Secretary Larry Summers says
The yuan isn't a threat to the US dollar, largely because China isn't a predictable and reliable market, according to former Treasury Secretary Larry Summers.on Friday, he doubted that anybody looking for political stability or an objective system for adjudicating their claims would hold large quantities of assets in yuan.
"There has never been a country where there was a strong desire to move as much capital out of the country as we're seeing in China right now, albeit blocked by controls," Summers said."Is that really going to be a place where people are going to decide they want to hold reserves on a massive scale?"
His view echoes that of other market commentators, who say that the greenback's global dominance is likely to remain unchallenged. Not only are US financial markets open and more protected by the US legal system, but the dollar is also protected by its incumbency in markets, said, meaning it would require"exceptional circumstances" for the dollar to be replaced in global trade., as they make the yuan less valuable relative to more liquid currencies like the dollar.
France Dernières Nouvelles, France Actualités
Similar News:Vous pouvez également lire des articles d'actualité similaires à celui-ci que nous avons collectés auprès d'autres sources d'information.
LARRY KUDLOW: The rule of law is the bedrock of free market capitalismFOX Business host Larry Kudlow calls on lawmakers to protect the United States' legal system amid the investigation into Hunter Biden on Monday's 'Kudlow.'
Lire la suite »
Baltics condemn China envoy’s stance on ex-Soviet nationsThe three Baltic states have strongly condemned comments by China's envoy to France, who appeared to suggest in a recent French television interview that former Soviet republics aren't sovereign nations.
Lire la suite »
China lodges solemn representations over S Korea's Taiwan remarksChina's Vice Foreign Minister Sun Weidong says South Korean President Yoon Suk Yeol's recent remarks about about Taiwan is 'erroneous' and 'totally unacceptable'
Lire la suite »
At Shanghai show, auto rivals lure drivers with in-car karaoke, crystal balls - AutoblogAt Shanghai show, auto rivals lure drivers with in-car karaoke, crystal balls
Lire la suite »
Reba McEntire still washes and reuses Solo cups'That’s my kinda party. You know, I don’t really care if everything matches.'
Lire la suite »
How America's literacy crisis will cripple our ability to combat ChinaAmericans seem to behave as if they are not locked in a civilizational struggle with a malevolent adversary. Not even a Chinese spy balloon floating over the U.S. mainland and collecting intelligence from military sites could focus our attention on the threat for more than a fleeting moment. But…
Lire la suite »