Comments by "DailyBeatings" (@DailyBeatings) on "Chinese Yuan to dethrone US Dollar: How de-dollarization succeed" video.

Since this new trade will be done outside the dollar system the percentage of dollar use will not change. However the aggregate will change and the dollar will weaken due do reduced demand.
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@johnteets2921 No because the trade amount between countries is outside the dollar system, so it's not counted as a portion of the aggregate. Let's say you have 100 million dollars of trade and 60% is used in dollars. That's a total dollar trade of 60 million. If you remove 20 million from the system you now have 48 million in dollar trade (80 million x 60%). The percentage of use remains the same, but the demand is less.
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@johnteets2921 Velocity of money has nothing to do with the percentage of the aggregate.
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@johnteets2921 Yes, however when the reduction in trade is proportional to other currencies within that system the percentages should not change. Two countries trading in their own currencies outside of normal channels have the effect of reducing the aggregate, but not the percentages within that system since they are no longer part of that system. Russia and China trade is an example since they trade primarily in rubles and yuan.
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