Could the yuan substitute the dollar and become the predominant currency? I would ask the following question: if you had some dollars, would you change them for yuan? No you wouldn’t, would you? We would like to demonstrate that the yuan is in no way a substitute for the dollar.
By Alicia García-Herrero at Bruegel | Sitting on a pile of debt, China’s only way out is to deleverage: more pain now for sustainable growth later. [Figure: China’s augmented fiscal deficit as % of GDP.]
HONG KONG | June 18, 2015 | By Alicia García-Herrero via Caixin | Brazil’s economy is burdened by debt and China is leveraging at an unsustainable level, situations that could be exacerbated by Fed tightening.