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83 sats \ 4 replies \ @optimism 5 Jun \ on: Renminbi just beat the euro in world trade for the first time charts_and_maps econ

I don't understand why France would invoice 30% of exports in Renminbi.

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106 sats \ 1 reply \ @k00b 5 Jun

To pay for imports?

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6 sats \ 0 replies \ @Solomonsatoshi 5 Jun

Exactly- most nations have a trade deficit with China.
This is a large part of how the US gained monetary hegemony when post WW2 USA was dominant as a manufacturer and most nations had a trade deficit with the US.
Today China fills that role of dominating trade and manufactured goods and purchase of commodities.
Paying in Yuan and receiving Yuan makes sense when China is your largest trade partner...as it is with 120 nations now.

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75 sats \ 0 replies \ @jakoyoh629 5 Jun
Further analysis reveals that this increase is primarily driven by the intensive margin, reflecting higher transaction values among firms already utilising the renminbi. At firm level, renminbi invoicing remains highly concentrated among a small number of large firms and tends to be applied in a largely discrete manner, particularly for exports. These findings indicate that significant fixed costs may be a key factor limiting wider adoption of renminbi invoicing. See Berthou, A. and Schmidt, J., “The rise of renminbi invoicing: evidence from French firm-level data”, Unpublished manuscript, 2026.
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6 sats \ 0 replies \ @Solomonsatoshi 5 Jun

'China is the world’s largest trading nation and the top trading partner for more than 120 countries.'

https://www.thepress.co.nz/rural/361006236/chinas-kiwi-food-pipeline

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