Could China's Currency Be The New World Reserve? part 3: War in Ukraine & Yuan Problems

The video discusses the BRICS economies and their trade relationships, particularly in light of Western sanctions on Russia. It explores the potential of the Chinese Yuan (RMB) as a global reserve currency, highlighting its increasing use but also its limitations, such as restrictions on currency transfer and foreign exchange manipulations. The video also examines the implications of US sanctions and the need for countries to diversify their currency reserves to mitigate risks. Despite the RMB's growth, concerns over China's economic policies and stability hinder its acceptance as a global reserve currency.

What is one of the main reasons for the increased trade among BRICS economies?

• Increased oil production in Brazil

• A new trade agreement with the EU

• A global decrease in trade tariffs

• Western sanctions on Russia

Why is the Chinese RMB unlikely to become the world's reserve currency?

• It is not widely circulated

• China's economic growth is stagnant

• There are limitations on its use and transfer

• It is not recognized by the IMF

What is one tactic China uses to make its exports more competitive?

• Artificially lowering the value of its currency

• Subsidizing foreign companies

• Reducing labor costs

• Increasing import tariffs

Why are some governments uncomfortable with holding reserves in American dollars?

• The US economy is unstable

• The US can sanction those reserves

• The dollar is losing value

• There are high transaction fees

What is a concern for central banks regarding the RMB as a reserve currency?

• The lack of trade agreements with China

• China's stable economic policies

• China's reputation for punitive economic actions

• The RMB's high value