An "unexpected" discovery by Russia and China that may be reshaping the rules of the game for the global economy.
Most countries in the world are accustomed to using US dollars for settlement when conducting international trade. The U.S. dollar is steadily accepted as the world's main reserve currency, like a "master key" in the international market.
Russia, a large northern country, was forced to withdraw from the use of the dollar due to various international political disputes. This could be an economic catastrophe for any country, but Russia has found new opportunities in this crisis. They began to strengthen trade ties with China, using direct settlement in renminbi to conduct transactions.
At first this change seemed like a helpless choice, but soon Russia discovered the shocking truth. In the past, most of the goods they bought with dollars were "made in China". Now the process of buying the same goods directly in RMB is cheaper. There is no need for dollar conversion, and there is no difference in the price difference that those middlemen earn in exchange rate conversion.
This discovery is like opening the door to a new world. Russia realized that if they could buy goods at a lower cost and then sell them in dollars on the market, they could save a lot of money and make more money on the international market.
More and more countries are considering or implementing RMB settlement trade with China. This trend has gradually created a new economic circle, in which countries have enjoyed the benefits of using the renminbi for settlement. Commodity prices are lower, transactions are more straightforward, and the economy is more autonomous.
The United States wants to reduce its dependence on China's industrial chain through various policies and strategies, and the repatriation of industries has proved to be less profitable than the price difference brought by acting as a middleman. What's more, even in the United States, some politicians and business people are taking advantage of this spread mechanism to make a profit.
If more countries around the world accept RMB settlement, the exchange rate differential advantage originally brought by US dollar settlement will gradually disappear. It's a contest of economic influence and international status.
In this new layout of the global economy, who will be the last country to insist on using the US dollar for settlement? As more and more countries turn to RMB, what will be the status of the dollar?
All these changes and future possibilities are based solely on current economic trends and interactions between countries. As with countless economic transformations throughout history, each change has been accompanied by uncertainty and challenges. In this game of international currency, each participant is plotting for his own benefit, trying to find his place in this change.