First of all, Brazil is a major oil producer itself and doesn't need middle eastern oil, but that's beside the point. I don't disagree with a lot of the things you say. I'm not saying the US will decline in absolute terms nor do I think that the dollar will necessarily go down further in the short term. It's true that the Chinese don't want that.
What I'm saying is that over the coming decades, the importance of the US is declining in relative terms and that trend is affecting the reserve currency status of the USD. Countries are diversifying out of the dollar. It makes sense for China and Brazil to hold some of their foreign currency reserves in each others currency instead of dollars, now that they are such close trading partners.
What you describe is the status quo. What matters is the trend and the rate of change.
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First of all, Brazil is a major oil producer itself and doesn't need middle eastern oil, but that's beside the point. I don't disagree with a lot of the things you say. I'm not saying the US will decline in absolute terms nor do I think that the dollar will necessarily go down further in the short term. It's true that the Chinese don't want that.
What I'm saying is that over the coming decades, the importance of the US is declining in relative terms and that trend is affecting the reserve currency status of the USD. Countries are diversifying out of the dollar. It makes sense for China and Brazil to hold some of their foreign currency reserves in each others currency instead of dollars, now that they are such close trading partners.
What you describe is the status quo. What matters is the trend and the rate of change.