China Printing Foreign Currency
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According to a latest report China has started printing foreign currency on a huge scale. Most of the countries are the participants of “Belt and Road Initiative” and one of them is unknown. Now, the major point is that how this will help China and its impact on the world.
As now a days smart phones have replaced paper money in almost every country in the world the same case is in China due to this the need of paper money became very low and the business of these mills got down. From years the machines and work load in these mills wasn’t high. Employees of these mills started to move for different jobs to earn their livings. Now, due to sudden arrival of this kind of order the work load has increased so much that their machines are fully loaded.
Demand of Raw Material and Others
Linen fibers, fine cotton and a lot of steam is required to make pulp and then turning it into best quality paper money. Required steam needs generating plants. This process is expensive due to reduce the risk of replication.
Influence on the Economy
Basically China builds its growth on low-cost export now paper money is also be a great option. The largest infrastructure project (Belt and Road Initiative) in the history is leading them to grab more opportunity.
Till now China was producing:
- More automobiles than any country in the world
- Sixty percent steel of the world.
- Six times more pair of shoes than India (who ranks 2nd)
- The world’s first and second fastest computers
- Twenty five percent of world’s solar panels
- more than half the world’s cement
Now, printing of foreign currencies a clear sign of the growth of China.
Influence on the Geopolitics
China is securing valuable partners and allies, due to which they have gained over regional politics. The official visits to other countries are helping them to maintain and grow their relation with the different countries. The biggest challenge is to U.S from this as both of these countries are one the biggest competitors of all time.