China and Brazil have reached a deal to trade in their own currencies, ditching the US dollar as an intermediary
The deal will enable China, the top rival to US economic hegemony, and Brazil, the biggest economy in Latin America, to conduct their massive trade and financial transactions directly, exchanging yuan for reais and vice versa instead of going through the dollar.
:xicko:
Now the Belt and Road Initiative, please
Great post.
It's also worth underlining that much of the reserve assets of dollars that are held internationally are actually in the form of US-dollar bonds, meaning that those holding them are essentially lending to the US.
It also inflates the value of the dollar, making imports cheaper and debt repayment more difficult (seen from this angle/aspect as well).