Brad Setser
speaker
466 appearances
2 recordings
1 series
first heard Nov 2024
last heard Apr 2025
Brad Setser’s voice in public audio — every appearance, attributed to the second.
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Appearances
So you essentially have to diversify into using the yuan.
Now the Yuan has a bunch of disadvantages.
The Yuan is not accepted globally.
If you're an African country and you get Yuan for selling something to China, you can't use the Yuan to buy stuff from your neighbor.
It's not that kind of global currency yet.
The dollar and euro are.
And in general, holding financial assets in Yuan means you've been holding a depreciating currency with lower yields than in the dollar.
And then by the way, China uses its geopolitical and geo what you know mostly it's been over its trade leverage pretty aggressively.
And you would have to assume, if you have a lot of your financial assets in Yuan or your trade is denominated in Yuan, that you are potentially subject to Chinese financial pressure.
So you you you get uh a little bit of defense against US and European sanctions, but at a pretty significant cost.
And you just don't see it.
So one one anecdote, you know, because you know, anecdotes are inter a little inter interesting.
It was a s it was sort of striking to me because I hadn't been to China for quite some time.
I was a little nervous about it to be honest.
And heard uh uh a bank treasurer from a big Chinese bank
talk about how they were thinking about the world and, you know, what that Chinese bank was worried about.
Well, it was worried about the fact that Yuan lending rates were being forced down.
And that was squeezing Yuan net interest margins.
And fair things.
That's what all banks tend to worry about.
Showing 341–360 of 466 · page 18 of 24
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