Dongda will issue U.S. sovereign bonds in Hong Kong.
This is actually a government bond issued by Dongda in Hong Kong, but it is not a RMB government bond, but a U.S. dollar government bond. That is, the buyer must use their own U.S. dollars to purchase the government bonds issued by Dongda, and Dongda will then transfer these U.S. dollars to countries that need U.S. dollars.
Dongda itself does not lack U.S. dollars, but some Asian, African, and Latin American economies lack U.S. dollars to repay debts. Dongda can lend U.S. dollars to these economies to repay U.S. dollar debts.
For example, the Argentine government needs U.S. dollars to repay U.S. debt, but it has no U.S. dollars. Dongda can lend to the Argentine government, and the Argentine government can then repay Dongda with goods such as agricultural products, mineral products, or by exchanging them with RMB that it has with Dongda.
Similar operational processes increase the U.S. financing costs and allow for more growth in the swap quotas between the RMB and other countries' currencies. For these countries, it is beneficial: they sell their products, repay their debts, and reduce exchange rate differences. For Dongda, it ensures the stable supply of the relevant products and increases the de-dollarization process.
Dongda is currently the top three trade partners of more than 100 economies. If one day these economies stop using the U.S. dollar among themselves, the U.S. dollar hegemony will naturally decline and will not be able to harvest the world.
This is truly a multi-benefit measure.
Original article: www.toutiao.com/article/1847058827132938/
Statement: This article represents the views of the author.