Don’t get your logic.
How does me knowing your Visa transactions with a particular bank encourages me to use the same bank?
Renminbi (RMB)/Yuan Appreciation & Internationalization
- Thread starter supercat
- Start date
How does me knowing your Visa transactions with a particular bank encourages me to use the same bank?
The logic is simple：People will be more inclined to use/trade/hold a currency，if such currency has a large share in global trade/reserve. Since swift only account for a small percent of RMB transaction，if you want to demonstrate the world the strength of RMB thus convince more parties to use it，then you'd need to regularly publish CIPS data. To prove that RMB's share in world trade is rising rapidly（because it has been stagnate on swift data，the only data people can see），this will encourage more parties to hold RMB. After all，people want to use a currency that is well accept everywhere，no one wants to hold a currency that isn't so popular.
Whether a currency is accepted everywhere will be known regardless, all one has to do is ask the buyers/sellers one wants to deal with.
Dilma Rouseff saying NDB will provide at least 30% of loans in local currencies of members. Hopefully, they can raise that proportion
supercat
Major
The essence of trading with your own currencies:
Hmm, I'm not sure why you would post response to a moron like ho-fung hung.
As I've said several times, offshore RMB is entirely convertible and free floating. onshore RMB has to get adjusted based on where offshore RMB is traded at, they can't deviate that much. There are over $200B of offshore RMB out there. Not exactly a small amount. It drives me crazy when people cannot get this simple fact correct.
Non-convertibility of RMB is a meme just like low consumption of China and 300% debt-to-GDP ratio.
RMB is the solution...
Updated April 17, 2023 at 10:24 a.m. EDT|Published April 17, 2023 at 7:59 a.m. EDT
NEW DELHI — Bangladesh has approved a payment of $318 million to a Russian nuclear power developer using the Chinese yuan, according to a Bangladeshi official, offering the latest instance of countries bypassing the U.S. dollar and using the Chinese currency to conduct international payments.
The decision to use the yuan was made at a meeting in the Bangladeshi Finance Ministry’s economic relations division on Thursday, Uttam Kumar Karmaker, who heads the ministry’s European affairs wing, told The Washington Post.
Karmaker said that although the decision was made, the transaction is yet to be completed because payment details still need to be resolved. He declined further comment, citing the diplomatic sensitivity of the issue.
By embracing Putin, Xi defies the U.S. and exploits a global divide
The decision resolves a payments deadlock between Bangladesh and Russia that has lasted for more than a year. The South Asian country has been unable to pay Russia for the power plant using dollars after Russia was banned from accessing the Society for Worldwide Interbank Financial Telecommunications (SWIFT) international money transfer system last year due to sanctions over President Vladimir Putin’s invasion of Ukraine.
The transaction, a payment for a $12 billion loan Bangladesh obtained from Russia to develop a nuclear power plant in Rooppur, will now be completed instead using yuan via the Cross-border Interbank Payment System (CIPS), developed by the Chinese in 2015 to combat the dominance of the dollar in international trade.
A representative for Rosatom State Atomic Energy Corporation, the Russian contractor in charge of building the Rooppur nuclear power plant, confirmed the plan to use yuan for the loan repayment on the condition of anonymity because of the sensitivity of the subject.
The Chinese online news outlet Sina reported on Monday that a Bangladeshi official said that paying for the plant in yuan would be the most feasible option.
The majority of cross-border trade is denominated in dollars and flows through the U.S. banking system, which gives the United States the unique ability to sanction and freeze the assets of rival governments, such as Russia, Iran and Taliban-led Afghanistan. But critics of the sanctions accuse the U.S. government of “weaponizing” the greenback and undermining its global status.
The Bangladesh deal comes after several other countries signaled recently that they would opt for yuan payments to circumvent the need to use dollars. In March, Brazil said it would abandon the dollar for trade with China, a development that Chinese officials and state media celebrated as a step in the world’s gradual “de-dollarization” and the eventual collapse of American hegemony.
The West hoped Lula would be a partner. He’s got his own plans.
Chinese President Xi Jinping is also pushing Persian Gulf countries, including Saudi Arabia, to accept yuan for oil, a vital commodity that has been priced almost exclusively in dollars for decades. Still, only a small fraction of trade is invoiced in yuan.
Paying for the nuclear plant in yuan could pave the way for resumption of trade as usual between Russia and Bangladesh, which has been paralyzed since the former’s invasion of Ukraine. The lack of a payment mechanism has been among the foremost reasons for the declining trade relations, experts and officials say.
Earlier attempts to address the payments problem between the two countries such as a currency swap or the Russia-backed System for Transfer of Financial Messages (SPFS) had been thwarted by U.S. sanctions last year.
The possibility of a Chinese solution to the payment problem began to take shape last year when China made a currency swap offer to Bangladesh, which in turn authorized a set of Bangladeshi banks to settle deals with China in yuan.
Mezbaul Haque, the spokesman of the central bank of Bangladesh, declined to confirm or deny the decision to pay Russia in yuan.
“The yuan is one of our official currencies,” he said when reached by telephone. “We have some of it in our foreign exchange reserves too. It is an option.”
Ahsan Mansur, executive director of the Policy Research Institute in Bangladesh, said the nuclear plant could not be delayed. Bangladesh needed to be “pragmatic” and proceed with the project even if it meant circumventing the dollar, he said.
“The interests of Third World countries like Bangladesh are not the same as that of China and the U.S.,” Mansur said. “We have to maintain relations with both.”
Majumder reported from Dhaka, Bangladesh. Gerry Shih in Udupi, India, and Meaghan Tobin in Taipei, Taiwan, contributed to this report.
Bangladesh to pay off Russian nuclear plant loan in Chinese currency
By and Azad MajumderUpdated April 17, 2023 at 10:24 a.m. EDT|Published April 17, 2023 at 7:59 a.m. EDT
NEW DELHI — Bangladesh has approved a payment of $318 million to a Russian nuclear power developer using the Chinese yuan, according to a Bangladeshi official, offering the latest instance of countries bypassing the U.S. dollar and using the Chinese currency to conduct international payments.
The decision to use the yuan was made at a meeting in the Bangladeshi Finance Ministry’s economic relations division on Thursday, Uttam Kumar Karmaker, who heads the ministry’s European affairs wing, told The Washington Post.
Karmaker said that although the decision was made, the transaction is yet to be completed because payment details still need to be resolved. He declined further comment, citing the diplomatic sensitivity of the issue.
By embracing Putin, Xi defies the U.S. and exploits a global divide
The decision resolves a payments deadlock between Bangladesh and Russia that has lasted for more than a year. The South Asian country has been unable to pay Russia for the power plant using dollars after Russia was banned from accessing the Society for Worldwide Interbank Financial Telecommunications (SWIFT) international money transfer system last year due to sanctions over President Vladimir Putin’s invasion of Ukraine.
The transaction, a payment for a $12 billion loan Bangladesh obtained from Russia to develop a nuclear power plant in Rooppur, will now be completed instead using yuan via the Cross-border Interbank Payment System (CIPS), developed by the Chinese in 2015 to combat the dominance of the dollar in international trade.
A representative for Rosatom State Atomic Energy Corporation, the Russian contractor in charge of building the Rooppur nuclear power plant, confirmed the plan to use yuan for the loan repayment on the condition of anonymity because of the sensitivity of the subject.
The Chinese online news outlet Sina reported on Monday that a Bangladeshi official said that paying for the plant in yuan would be the most feasible option.
The majority of cross-border trade is denominated in dollars and flows through the U.S. banking system, which gives the United States the unique ability to sanction and freeze the assets of rival governments, such as Russia, Iran and Taliban-led Afghanistan. But critics of the sanctions accuse the U.S. government of “weaponizing” the greenback and undermining its global status.
The Bangladesh deal comes after several other countries signaled recently that they would opt for yuan payments to circumvent the need to use dollars. In March, Brazil said it would abandon the dollar for trade with China, a development that Chinese officials and state media celebrated as a step in the world’s gradual “de-dollarization” and the eventual collapse of American hegemony.
The West hoped Lula would be a partner. He’s got his own plans.
Chinese President Xi Jinping is also pushing Persian Gulf countries, including Saudi Arabia, to accept yuan for oil, a vital commodity that has been priced almost exclusively in dollars for decades. Still, only a small fraction of trade is invoiced in yuan.
Paying for the nuclear plant in yuan could pave the way for resumption of trade as usual between Russia and Bangladesh, which has been paralyzed since the former’s invasion of Ukraine. The lack of a payment mechanism has been among the foremost reasons for the declining trade relations, experts and officials say.
Earlier attempts to address the payments problem between the two countries such as a currency swap or the Russia-backed System for Transfer of Financial Messages (SPFS) had been thwarted by U.S. sanctions last year.
The possibility of a Chinese solution to the payment problem began to take shape last year when China made a currency swap offer to Bangladesh, which in turn authorized a set of Bangladeshi banks to settle deals with China in yuan.
Mezbaul Haque, the spokesman of the central bank of Bangladesh, declined to confirm or deny the decision to pay Russia in yuan.
“The yuan is one of our official currencies,” he said when reached by telephone. “We have some of it in our foreign exchange reserves too. It is an option.”
Ahsan Mansur, executive director of the Policy Research Institute in Bangladesh, said the nuclear plant could not be delayed. Bangladesh needed to be “pragmatic” and proceed with the project even if it meant circumventing the dollar, he said.
“The interests of Third World countries like Bangladesh are not the same as that of China and the U.S.,” Mansur said. “We have to maintain relations with both.”
Majumder reported from Dhaka, Bangladesh. Gerry Shih in Udupi, India, and Meaghan Tobin in Taipei, Taiwan, contributed to this report.
That article's comments are overflowing with salt. It's fantastic.