Renminbi (RMB)/Yuan Appreciation & Internationalization
- Thread starter supercat
- Start date
Two good points here by Luke. Just by virtue of paying oil & gas to Russians in RMB, Russia will have very large RMB reserves. That's probably why they are selling RMB to support RUB.
Other thing I hadn't thought about is China arbing oil market bw RMB & USD. Although, they are already paying Russians & Iranians so low it probably doesn't matter
Other thing I hadn't thought about is China arbing oil market bw RMB & USD. Although, they are already paying Russians & Iranians so low it probably doesn't matter
what is the chinese balance of payments crisis?
escobar
Brigadier
Russia’s Largest Miner Is Selling Nickel to China in Yuan
Here is the article behind paywall for everyone
Keep in mind that Norilsk Nickel is huge. I remember reading a while back that they represent 2% of Russia's GDP, so they are huge in this industry.
It should come as no surprise that volume done on Shanghai future exchange are in RMB.
The most obvious consequence is that China should be using this to pressure other sellers of Nickel to be trading on SHFE. Although in some cases, they are already doing things under long term contracts. But it's quite interesting, they are now negotiation long term contracts on SHFE prices also.
With Russian gov't encouragement, this is working out really well for Chinese companies.
RMB was the most actively traded currency on MOEX in February. The first time this has happened in the history.
Keep in mind that Russia is probably selling Yuan right now because it's been taking payment in energy in Yuan. As such, Russia selling of Yuan to defend its currency is a sign of its increasing usage of Yuan as reserve currency.
also added from last week, Belarus and China to increase usage of national currency in trading
fine with me as long as most of that is in RMB.
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India has asked banks and traders to avoid using Chinese yuan to pay for Russian imports, three government officials involved in policy making and two banking sources said, because of long-running political differences with its neighbour.
India, which has emerged as a top buyer of Russian oil as well as discounted coal, would prefer the use of United Arab Emirates dirhams to settle trade.
Last year India's biggest cement producer used Chinese yuan for a cargo of Russian coal, which raised some concerns among officials.
They said Russia was keen on yuan settlement as it helps them in purchases of goods from China.
As long as it's not dollars, it's still a net win for RMB.
