It isn't like they can differentiate or care to differentiate. To them, all Chinese are commies and yellow peril.
Renminbi (RMB)/Yuan Appreciation & Internationalization
- Thread starter supercat
- Start date
A large offshore market for your national currency is only a problem if the international use of the RMB is disproportionately high compared to the domestic market. This is the problem of the Swiss franc, the Swiss market is so small that large pools of francs abroad could quickly overwhelm the Swiss national bank.
China is increasing its share of global GDP every year with GDP growth and Chinese international trade outstripping the global average every year. So China has a lot of room for increasing the amount of offshore RMB.
Supplying RMB to international trading partners is actually necessary to prevent appreciation of the currency. If countries like Russia, Brazil, Iran and Saudi are buying up all the available RMB for their reserves and their trade with third countries, there'll be a shortage of RMB resulting in unnecessary appreciation
This is probably the most under appreciated comment of the Macron trip (which in itself was a giant finger toward America).
If Europe starts to use the Euro to buy oil & natural gas, de-dollarization is going to happen really fast. Keep in mind that it was a French company that did the first LNG trade on SHPGX. Now China just needs to do things to encourage more companies from France and rest of the world to buy LNG from SHPGX.
If Europe starts to use the Euro to buy oil & natural gas, de-dollarization is going to happen really fast. Keep in mind that it was a French company that did the first LNG trade on SHPGX. Now China just needs to do things to encourage more companies from France and rest of the world to buy LNG from SHPGX.
This is something to think about
now we have others observing that China has suddenly become a very safe place to invest compared to Western banks. Remember the Saudis losing at least $1B with Credit Suisse? That cannot have gone down to well.
so would you rather invest in a real Chinese asset or UST or Swiss bank right now?
People from back 15 years ago will be very surprised at the answer today.
now we have others observing that China has suddenly become a very safe place to invest compared to Western banks. Remember the Saudis losing at least $1B with Credit Suisse? That cannot have gone down to well.
so would you rather invest in a real Chinese asset or UST or Swiss bank right now?
People from back 15 years ago will be very surprised at the answer today.
Another item here important to see
the goal of having Russian banks/corporates fully adopting Chinese is working itself out. Now just need more banks on CIPS
China's largest commercial bank has completed the first cross-border yuan settlement in Brazil at its local branch..
its better for us if China start to publish CIPS data quarter wise.
Better for us but not better for China. That data is secret for a reason and should remain so.