This is more of a news story than anything else but BHP, Australia’s biggest mining exporter, has opted to trade its products for Yuan due to the unpredictability (should that be read as fragility?) of the US dollar. I suspect this will be the start of a trend. I’m not clued-in enough to know whether having a fully owned Chinese subsidiary company assists that decision in any material way, but I suspect it does.
The launch of the yuan-based trade in iron ore marks an important step for the Australian company to get closer to the Chinese market, while balancing the possible risks and uncertainties from the US dollar ignited by high US inflation, industry insiders and experts said.Global Times article
Is this yet another nail in the coffin of USD as an international trading currency?
It is certainly a way for business to procure better, more friendly relations with a nation of growing influence in the world. Especially when their own government is showing little effort to provide beneficial trading conditions with their major foreign partners themselves, it should be noted.
Personally, I’m overjoyed at this news. The sooner Australia breaks free of the US stranglehold of the last five to eight decades, the happier I will be. And the better off, or at least more stable within its own region, and more independent in its outlook and operation, my country will become.
There is no future in the current geopolitical arrangement based on the Big Brother principle.