Terms of trade

How farfetched is the idea of negotiating a US-China agreement to strengthen the renminbi (RMB) vis a vis the dollar? Yawen Chen argues that China’s current economic woes make the idea of a second Plaza Accord less outlandish. The Financial Times reports that Trump would not weaken the dollar, according to one of his top advisors. Two top Chinese economists explain why internationalization of the RMB is neither easy nor urgent. Russia is urging the BRICS to end dollar dominance, per Reuters. Anders Aslund in Project Syndicate writes that the Russian economy’s days are numbered.

Mentioned publications

China’s woes make Plaza Accord 2.0 less outlandish – Yawen Chen, Reuters (Commentary), October 17, 2024
Chen asks whether an agreement to strengthen the RMB could actually benefit China.
HF sponsored accessTrump would not weaken the dollar, says adviser Scott Bessent – Alex Rogers and James Politi, Financial Times, October 10, 2024
The FT reports that a close adviser to Trump considers him a free trader at heart.
Why RMB internationalization is neither easy nor urgent – Translation of Southern Weekly interview with Yu Yongding and Pan Yingli, The East is Read, August 4, 2024
Two well-respected economists examine the prospects for RMB internationalization.
At BRICS summit, Russia to push to end dollar dominance – Reuters, October 16, 2024
Reuters reports on Russia’s efforts to build an alternative international payments system.
The Russian War Economy’s Days Are Numbered – Anders Aslund, Project Syndicate, October 1, 2024
Aslund describes a stagnant Russian economy that may be hiding inflation.