China surprised the world by deciding to cancel the dollar peg in the stock exchange transactions and decided to deal officially by using the Chinese yuan instead of the dollar.
This is a bold and important step in China’s economic history. This means that the dollar has become non-existent in Chinese trading and the US dollar will fall strongly against the Chinese yuan. It may affect it in global markets.
All the global markets were stunned by the decision. The news was discussed today on the BBC World English afternoon program. It is an economic war that could lead the world to a devastating war which cannot be neglected if America acts foolishly in the face of this decision !! China 2021 will lead the world.
This is China’s old dream and what it planned to achieve for decades or more. China plans a separate digital currency e-RMB, to take on fights with $ e-RMB, which is set to be the first digital currency operated by a major economy. A sovereign *digital currency provides a functional alternative to the dollar* settlement system and blunts the impact of any sanctions or threats of exclusion both at a country and company level,” last week’s China Daily report said.
Some Government employees and public servants are to receive their salaries in the digital currency from May. A decline in cash usage is expected to continue amid the growing popularity of digital payment platforms and as people avoid physical contact during the coronavirus pandemic.
It may also facilitate *integration into globally traded currency markets* with a reduced risk of politically inspired disruption.
The Dragon has started making moves (as predicted/ expected)