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News Viral in social media suggests that economic giant china has decided to cancel the Dollar peg in the stock exchange.

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News CLAIM: News Viral in social media suggests that economic giant china has decided to cancel the Dollar peg in the stock exchange.

China surprised the world today and decided to cancel the dollar peg in the stock exchange transactions and decided to deal officially and the official link to the Chinese yuan instead of the dollar, and this is a bold and important step in China’s economic history.

This means that the dollar has become non-existent in Chinese trading and the US dollar will fall strongly against the Chinese yuan and may affect it in global markets. And all the global markets were stunned by the decision.

The news was discussed widely. It is an economic war that could lead the world to a devastating war that cannot be neglected if Americaacts foolishly in the face of this decision !! China 2021 will lead the world.

This is China’s old dream and what it planned to achieve for decades or more. China plans a separate digital currency e-RMB, to take on fights with $. China starts a major trial of state-run digital currency.

The explosive rally of digital currency-related stocks followed news that after several years of anticipation, China’s government released a timeline for rolling out its new digital currency in four cities.

In the next month, government workers in these cities will use a smartphone application to receive at least a portion of their paychecks in the form of digital payment, marking a milestone on the path toward the world’s first digital currency system by a major central bank. The report says the e-RMB has reportedly been adopted into the monetary systems of several cities.

Experts say the digital currency could represent a serious threat to an American asset that has reigned unchallenged for decades: the U.S. dollar.

In recent months, China’s central bank has stepped up its development of the e-RMB, which is set to be the first digital currency operated by a major economy. It has reportedly begun trials in several cities, including Shenzhen, Suzhou, Chengdu, as well as a new area south of Beijing, Xiong’an, and areas that will host some of the events for the 2022 Beijing Winter Olympics.

Sina News said the currency would be used to subsidize transport in Suzhou, but in Xiong’an the trial primarily focused on food and retail. Some reports also claim businesses including McDonald’s and Starbucks have agreed to be part of the trial.

Digital payment platforms are already widespread in China including Alipay, owned by Alibaba’s Ant Financial, and WeChat Pay, owned by Tencent, but they do not replace existing currency.

“A sovereign digital currency provides a functional alternative to the dollar settlement system and blunts the impact of any sanctions or threats of exclusion both at a country and company level,” last week’s China Daily report said.

“It may also facilitate integration into globally traded currency markets with a reduced risk of politically inspired disruption.”A decline in cash usage is expected to continue amid the growing popularity of digital payment platforms and as people avoid physical contact during the coronavirus pandemic.

A sovereign *digital currency provides a functional alternative to the dollar* settlement system and blunts the impact of any sanctions or threats of exclusion both at a country and company level,” last week’s China Daily report said.

Some government employees and public servants to receive their salaries in the digital currency from May.

Sudden Chinese decision shakes the corners of the entire world China surprised the world today and decided to cancel the dollar peg in the stock exchange transactions and decided to deal officially and the official link to the Chinese yuan instead of the dollar,#day37oflockdown

TRUTH & Verification:  The news shared by thousands on social media claiming of the Chinese decision to cancel the Dollar peg in the stock exchange is not true. We did not find any news references from any of the Chinese websites or government links by china.

The renminbi is the official currency of China, and one of the world's major reserve currencies. The yuan is the basic unit of the renminbi but is also used to refer to the Chinese currency generally, especially in international contexts where "Chinese yuan" is widely used to refer to the renminbi

As per IMF, During the last review concluded in November 2015, the Board decided that the Chinese renminbi (RMB) met the criteria for SDR basket inclusion. Following this decision, the Chinese RMB joined the US dollar, euro, Japanese yen, and British pound sterling in the SDR basket, effective October 1, 2016, and the three-month benchmark yield for China Treasury bonds was included the SDRi basket. During the 2015 review, the Board also approved a new formula—assigning equal shares to the currency issuer’s exports and a composite financial indicator—to determine the weights of currencies in the SDR basket.

Special Drawing Right (SDR)

The SDR is an international reserve asset, created by the IMF in 1969 to supplement its member countries’ official reserves. So far SDR 204.2 billion (equivalent to about US$281 billion) have been allocated to members, including SDR 182.6 billion allocated in 2009 in the wake of the global financial crisis.

 

VERDICT: False





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