Substantial_L1ght

Substantial_L1ght t1_je8q05m wrote

This is largely symbolic. There are only so many Brazilian Reals China can accumulate before they will need to get rid of it on the open market and that means they will eventually have to translate Reals to US dollars.

In any trading arrangement, as long as one side is exporting more than the other - in this case China - they will eventually need to use the reserve currency or be stuck with a lot of fiat currency that can’t be used to buy anything.

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