The bilateral currency swap and trade in local currency is huge! This goes straight to the heart of the matter, dependency on the US and nothing is more symbolic of that than to be forced to use USD for bilateral trade. Without the need to accumulate USD in reserve since trading with China will represent a large chunk of Canadian economy, it means the US will have less sway over Canada. I was wondering why only the first 49000 EVs and feel the Chinese were giving up a lot more than the Canadians. Making the Canadians trade in local currency and bypassing the USD is the real meat of this deal.
Good point about the currency swap and I agree with you that China has, as it very often does, given more than it has received in order to advance the world in the right direction…
The bilateral currency swap and trade in local currency is huge! This goes straight to the heart of the matter, dependency on the US and nothing is more symbolic of that than to be forced to use USD for bilateral trade. Without the need to accumulate USD in reserve since trading with China will represent a large chunk of Canadian economy, it means the US will have less sway over Canada. I was wondering why only the first 49000 EVs and feel the Chinese were giving up a lot more than the Canadians. Making the Canadians trade in local currency and bypassing the USD is the real meat of this deal.
Good point about the currency swap and I agree with you that China has, as it very often does, given more than it has received in order to advance the world in the right direction…