Renminbi (RMB)/Yuan Appreciation & Internationalization

NAIROBI, June 23 (Reuters) - Kenya's move to convert Chinese loans from ‌dollars into yuan to cut borrowing costs is drawing interest from at least five other African and Asian nations, an AidData study found, in a sign debt-laden borrowers are exploring alternatives to expensive dollar-linked financing. Ethiopia, Mozambique, Zambia, Pakistan and Indonesia were among countries that could seek

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to the terms of Chinese loans, according to the report, as Beijing also pushes broader use of the renminbi in cross-border lending.

The East African nation converted three Chinese railway loans from dollars into yuan, alongside longer maturities and extra grace periods, cutting its debt-service costs by about $215 million a year. "Kenya’s widely publicized payment relief from China Eximbank has sparked interest among other countries in converting their existing debts from USD to RMB," said AidData, which also analysed media reports for its study.

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BEIJING, June 25 (Reuters) - Brazil plans to raise up to 5 billion yuan ($735 million) with its first-ever issuance of panda bonds, Finance Minister Dario ‌Durigan told Reuters on Thursday, marking the largest debut of yuan-denominated debt by a foreign nation in China. The Latin American country will become the fifth sovereign issuer in 12 months to tap into China's domestic debt market, with the move seen as a "test" to help private Brazilian firms deepen their presence in the world's second-largest economy, Durigan said.

Brazilian firms had asked the government to begin issuing yuan-denominated debt to help them raise funds through private panda bond deals and to ease foreign exchange volatility in Brazil, Durigan ‌said. He ⁠added that he had discussed the plan with miner Vale

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and electrical equipment maker WEG

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. "The profitability of projects (in Brazil) is very good, but the volatility of the rates of the (Brazilian real) may affect the final result, so we are providing a hedge currency resource for these investments," he added.

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This helps explain why China’s financial reforms often appear contradictory to Western investors. On the one hand, Beijing seeks greater international participation in Chinese markets. On the other, China remains reluctant to surrender control over capital flows, exchange rates and critical financial infrastructure. China may not be pursuing financial liberalization in the traditional sense at all. Rather, it appears to be pursuing financial resilience — and for Beijing, resilience may matter more than dominance.

So, while investors are asking whether the renminbi will become the next dollar, Beijing appears to be asking a different question entirely: Can China continue to finance trade, provide liquidity, support its partners and maintain economic stability during a prolonged geopolitical confrontation with the US? Those are fundamentally different objectives. China doesn’t need to build the next American financial system to alter the geopolitical balance of power, reshape capital allocation decisions, increase the costs of sanctions and force markets to reassess assumptions about financial globalization.

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tphuang said:

https://twitter.com/i/web/status/2074864451216449846

China's gold reserve changes, purchase compared to gold price and such.

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siegecrossbow said:

The paper gold price is way undervalued because financial institutions are playing a massive shell game by selling thousands of shares of “paper gold” for every ounce of real physical gold actually in storage.

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LUANDA, July 10 (Reuters) - Angola's central bank has added China's yuan to the list of currencies local banks can use to meet foreign-currency reserve ‌requirements, alongside the U.S. dollar, euro and South African rand.

• The Bank of Angola made the change in a directive dated July 2 that was published on its website on Thursday.
• Mandatory ⁠reserves are funds national banks have to hold with the central bank for financial stability and to manage liquidity in the banking system.
• The yuan has become an increasingly important currency in Africa due to China's position as the continent's largest trading partner and key source of infrastructure financing.

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The London Clearing House (LCH) has begun accepting offshore yuan-denominated Chinese government bonds as eligible non-cash collateral, marking a structural milestone in Beijing’s decade-long push to internationalise its currency and integrate its debt into global financial pipelines. The decision by LCH – a major derivatives clearing house owned by the London Stock Exchange Group – allows investors to use offshore yuan sovereign bonds, also known as dim sum bonds, to meet margin requirements. The move comes amid a growing appetite for yuan assets, driven by China’s expanding multitrillion-dollar domestic bonds market, the world’s second largest.

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