Renminbi (RMB)/Yuan Appreciation & Internationalization

tphuang

tphuang

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vincent said:
A simple solution for Iraq is to accept RMB for their oil sales.
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good point, China imported more from Iraq than it exported.
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So Iraq buying from China in RMB shouldn't be hard.

China will have to work out mechanism for all this oil trade with GCC countries in RMB even if Shanghai exchanges are not ready.
 
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tonyget

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tphuang said:
China will have to work out mechanism for all this oil trade with GCC countries in RMB even if Shanghai exchanges are not ready.
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Where do Iraq get RMB，if they only plan to import from China using RMB，but not export？Bangladesh used to test RMB based trade with China，but they quickly run out of RMB reserve because of the huge trade deficit against China，so they abolished the RMB trade in the end.

As I said before，at the moment RMB based trade is only suitable for those countries who have a trade surplus against China，and willing to accept China buy their goods using RMB.
 
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MixedReality

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tphuang said:
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CIPS settlement is up 50% since the Ukraine war has started. This shouldn't surprise anyone, but it's also starting from a low base. One thing to note is that stats about RMB usage in cross border settlement may not be accurate since they may not include CIPS.
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SWIFT RMB payments usage understates the actual amount of RMB usage in global payments since trillions of RMB is settled through CIPS.
 
tphuang

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Alright, a good article on Russia's rapid adoption of RMB. I wasn't aware that RMB savings have become so uncommon among Russians. And this is the good part to know
Mr. Romashkin said there were technological hiccups. Some brokers weren’t fully set up to sell yuan securities, with some displaying incorrect information about Bistrodengi’s bonds, he said. Some didn’t allow investors to buy bonds using their app, instead requiring trades be done over the phone.
“Gradually we are solving these problems and subsequent placements have had fewer technical problems compared to when we started the process late last year,” he said.
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So again, Russia is basically the first test case of Yuan being adopted as the main currency by a large foreign country. It would be good if they can use this experience with other countries in the future.
 
SteelBird

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tonyget said:
Where do Iraq get RMB，if they only plan to import from China using RMB，but not export？Bangladesh used to test RMB based trade with China，but they quickly run out of RMB reserve because of the huge trade deficit against China，so they abolished the RMB trade in the end.

As I said before，at the moment RMB based trade is only suitable for those countries who have a trade surplus against China，and willing to accept China buy their goods using RMB.
Click to expand...
I've just got a funny idea; to make RMB vastly available internationally, China may choose to pay its international debts by RMB. Anyone who needs RMB can use their USD to buy RMB from those who have surplus RMB.
 
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