Renminbi (RMB)/Yuan Appreciation & Internationalization

shouldn't be a surprise here given the two countries closeness and Pakistan's declining USD reserves, but trades between the two countries should be in RMB as much as possible. The only issue is that Pakistan runs such a large deficit against China.

an important part of de-dollarization is just reduced UST holdings
Frankly, China is not moving fast enough here. Even Japan is selling its UST holdings faster. Although in its case, that's probably due to Japan running trade deficit. China is probably moving money out of UST already, but it should be buying a whole lot more gold

The annoying one for me is HK. Chinese gov't needs to tell HK to start selling some of its UST holdings and then peg its currency to RMB.

It seems that the 160 Airbus planes are transacted in RMB.

160 airbus plane transaction

yearofrooster said:

160 airbus plane transaction

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Its too early to speculate. Lets wait and see

countries are rapidly moving away from US treasury as reserve assets. And I think this doesn't even factor in the record gold accumulation.

There was a rumor online about Russian central bank complaining about RMB and wanting to actually invest in EUR and USD. That has now turned out to be completely false
Russian central bank continues its line of holding reserves in friendly currencies
Russian reserves are now back to $600. Not sure how much of that is RMB, since I think they still need to carefully get some of their assets out of EUR and UST, but should continue to accumulate more gold and RMB as time goes on and they mine more gold and take more RMB as payment for oil.

This is interesting, cross border settlements from Guandong crossed the 50% threshold with RMB for the first time. Now Guangdong is a special case, since it does a lot of settlement with HK (which maybe counting in the total0, but there is clearly an increase here regardless of the caveats.
There is finally an all out effort to do cross border yuan settlements

In the Greater Bay Area, cross-border cash management jumped 1.3 times to CNY802 million (USD116.6 million) in the first quarter from the same period last year.

Some 14 banks in Guangdong, Shenzhen excluded, launched cross-border two-way transfer of Chinese yuan assets, with the sum reaching CNY86 billion (USD12.5 billion), up 1.6 times in the period.

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and this is interesting, BRI countries are investing more in RMB
I think the bond issued is a small amount. The more relevant one is the the oversea's holdings. And that is up to 3.2T RMB, And considering Russia and Saudi Arabia are not in BRI, it's quite significant that still half of the bond holdings are by BRI countries.

Russia and Saudi Arabia are in BRI. In fact there are major investments there.
The railway from China to Europe passes by Russia. And China was a major investor in Yamal LNG project. China is probably the largest foreign investor in Russian Arctic resource exploration and main interested foreign party in the Northern Sea Route.

gelgoog said:

Russia and Saudi Arabia are in BRI. In fact there are major investments there.
The railway from China to Europe passes by Russia. And China was a major investor in Yamal LNG project. China is probably the largest foreign investor in Russian Arctic resource exploration and main interested foreign party in the Northern Sea Route.

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pretty sure Russia is not a Belt and road country, even though China does plenty of investment there

The land routes through Russia, including rail freight, are part of the One Belt routes of the One Belt One Road initiative.
The Silk Road Fund invested into Yamal LNG and SIBUR holdings in Russia.
Russia has been part of the initiative since pretty much the beginning.