Top Tweets for #cHIMa

How China is slowly dedollarizing global trade using gold Step 1: Create the SGE, turn it into one of the world’s largest physical gold markets, with contracts priced in CNY and settled in bullion. Emphasis is on physical. Step 2: After the 2008 crisis and especially after 2022, the PBoC steadily increased its reported gold reserves and diversified away from USTs. The GFC showed the US financial system can’t be trusted 2022 sanctions showed access to the financial system will be weaponized and reserves outside your border seized Step 3: Build channels to spread the CNY - Offshore yuan markets - Swap lines - CIPS and other non‑SWIFT payment channels Step 4: Encourage trade outside of the dollar system - ~40 percent of China trade is settled in CNY - Up from single digits a decade ago - Offer refinancing $ loans to CNY loans at ~60% lower rates Step 5: Open the capital market through gold - Country A sells stuff to China, receives CNY - Can swap surpluses to gold, or goods - CNY is backed by gold on a floating, not fixed basis You don’t need to trust Chinese fiscal policy… just gold. Step 4: Establish offshore gold storage and delivery facilities. Countries can swap their surpluses to gold, while storing it within their own borders. It’s not really CNY replacing the $. It’s gold becoming the neutral settlement asset again, with China providing the infrastructure.