Many people are still full of illusions about China and the United States.
Americans are so cruel that they don't even recognize their parents. There is no lower limit to their shameless. Biden began to take urgent action again.
The White House announced that US President Joe Biden had signed a decree prohibiting the US Treasury from participating in transactions involving special drawing rights held by Russia or Belarus. This is a very special signal, which means that the traditional financial rules and game rules will basically be completely subverted. Americans will do their utmost to completely destroy Russia and Belarus with all their strength. But today they are dealing with Russia. What if they use these routines to come to China tomorrow?
Many people should wake up. They must wake up.
According to the news, on Monday, October 4th, 2022/KLOC-0, 65438, the President signed a ban on Russian-Belarusian SDR transactions, prohibiting the finance minister from participating in transactions involving SDR held by Russia or Belarus. On the surface, Biden banned the US Treasury from participating in this matter, but in fact, the US Treasury is the largest shareholder of the IMF fund and the owner of the International Monetary Fund and the World Bank.
You can imagine the true meaning of Biden's order-in the whole system, if the United States takes action against the IMF and the World Bank, the building of international finance will be shaken in an instant, and Russia and Belarus will be speechless and unable to say what they are suffering! What they encountered was even more intense than the "financial blitzkrieg" that happened at the beginning of the Ukrainian war.
Not only that, Biden also asked the US Treasury to crack down on all those who support Russia. The implication is that China and India are the future targets, and if they decide who will support Russia, they will be the next unlucky ones.
According to the website of the US Congress, in addition to prohibiting participation in SDR transactions, the new law also requires the Ministry of Finance to "take measures to combat support for Russia and Belarus.
According to the decree, the Ministry of Finance should actively advocate that IMF member countries prohibit trading with special drawing rights held by Russia or Belarus, and send an American representative to each international financial institution to oppose providing financial assistance to Russia or Belarus, unless such assistance is used to solve the basic human needs of civilians. In May this year, the International Monetary Fund recently completed a five-year review of SDR, and raised the weight of RMB from 10.92% to 12.28%. This is the first fixed value review after 20 16 RMB was put into the basket.
People feel that this is obviously a "routine" against China, because Russian and Belarusian special drawing rights in the IMF are very, very few. However, as an important supporter of Russia, China has a very large proportion of SDR in the IMF. What if this "trap" is for China?
What exactly is SDR?
SDR is an international reserve asset, which is allocated by the International Monetary Fund according to the share subscribed by member countries. When a member of the International Monetary Fund has a balance of payments deficit, it can be used to exchange foreign exchange with other member countries designated by the Fund to pay the balance of payments deficit or repay the loan of the Fund, or it can be used as an international reserve like gold and freely convertible currencies.
What is the special drawing right's special significance to China?
One of the ways that China is trying is to include the RMB in the SDR basket. SDR is the reserve asset of the International Monetary Fund (IMF). Only by joining this currency basket can RMB play a more clear and positive role in SDR valuation. At present, the currency basket consists of four international currencies: Euro, Japanese Yen, British Pound and US Dollar.
Georgieva, managing director of IMF, said: Unless Russia overcomes the restrictions of sanctions, it is unlikely to use SDR.
202 1, G20 did a great thing. The G20 finance ministers and central bank governors reached an agreement and agreed to support the International Monetary Fund (IMF) to increase the Special Drawing Rights (SDR) by $650 billion to help economies cope with the global COVID-19 epidemic and promote economic recovery.
This is the first time since the outbreak of the international financial crisis in 2008, and it is also the largest increase in SDR in IMF history, from the current 204.2 billion SDR to about 662.8 billion SDR. If Russia and Belarus are banned from using SDR, it is obvious that Russia will not even think about these huge funds. Russia itself has provided about $34 billion in SDR reserves at the IMF.
The International Monetary Fund (IMF) was established in Washington, D.C. on February 27th, 1945 according to the IMF Agreement signed at the Bretton Woods Conference in July. Established at the same time as the World Bank and listed as the two largest financial institutions in the world, their duties are to monitor the currency exchange rates and trade conditions of various countries, provide technical and financial assistance, and ensure the normal operation of the global financial system. Its headquarters is in Washington, DC. We often hear that the "SDR" was created by the institution in 1969. The main shareholders are the United States and Japan, and the United States has an absolute right to speak in this organization. China is currently the third largest shareholder.
To sum up briefly-
This time, the United States sent a very dangerous signal by attacking the special drawing rights of Russia and Belarus.
Because from the disk, Russia's SDR in the IMF is actually not much, especially in Belarus. The United States, on the other hand, has taken the measure of "surrounding some gangs", that is, dealing with Russia and Belarus. Whoever helps them is the next target!
So the implication is that China and India will definitely be one of the targets of this attack.
We must consider what to do in the future.