Renminbi (RMB)/Yuan Appreciation & Internationalization
- Thread starter supercat
- Start date
nice
good article here from Reuters
I also think that 4.5% is undercounting, because it only shows SWIFT. A lot of the increases is just from doing more energy trades in RMB imo. Also all that additional trading with Russia and Iran are probably in RMB
Question, is this counting trade with HK or something? And hence over counting. Just curious
It includes HK because it is a separate custom region, in trade terms same as foreign country.
However, it is not over counting the RMB usage, because in the past HK use USD to trade with mainland just like a foreign country.
Except sovereignty over HK rests in Beijing, everything else about HK including trade, currency and finance are pretty much the same as a foreign country, that is what "one country two systems" all about.
Last edited:
i expected this after they ran out of USD over the weekend. If they don't pay with RMB, what else are they going to import with?
the important part is that this is a continuous thing. Now, hopefully they can pay the import of lithium and assets in Argentina in RMB too. That should be a reasonable exchange. Otherwise, this is just giving stuff for free to Argentina.
On the other hand, this pretty much guarantees that Argentina has to buy Chinese stuff
Is CIPS trade volume data publically available like SWIFT? At a glance on google I can't seem to find it.
A theory I've been hearing is with CIPS usage increasing it provides PBoC an information asymmetry advantage since they have access to both SWIFT and CIPS data, while US government only have SWIFT. Thus CPC has an increasingly more complete picture of global trade compared to US government. Does this theory hold water?
A theory I've been hearing is with CIPS usage increasing it provides PBoC an information asymmetry advantage since they have access to both SWIFT and CIPS data, while US government only have SWIFT. Thus CPC has an increasingly more complete picture of global trade compared to US government. Does this theory hold water?
i don't think CIPS data is available in the same way.
More de-dollarization news
looks like Thailand also wants to pay Chinese goods in RMB in order to not burn up its USD reserves. The end goal here for China is having a bunch of countries accumulating RMB reserves, so they can pay imports in RMB
Also mentioned here
And of course Indonesia
doesn't allow me to copy and paste, but China is one of the countries mentioned in there for Local currency trading
More de-dollarization news
looks like Thailand also wants to pay Chinese goods in RMB in order to not burn up its USD reserves. The end goal here for China is having a bunch of countries accumulating RMB reserves, so they can pay imports in RMB
Also mentioned here
And of course Indonesia
doesn't allow me to copy and paste, but China is one of the countries mentioned in there for Local currency trading
other things to consider. outflows in M1/M2 are accelerating. Based on EUR/USD recently, looks like money is moving into EUR
that has its own implications
banks lent $30B to FRC in March & they are going to want to be made whole if FRC goes under
the nervousness over certain banks in US is certainly understandable
Another big question is what would the end of Yen carry trade do to USD? Imagine when BOJ no longer defends a 0% interest rate and all that JPY comes back
Things are going in the right direction, but need more time to observe
that has its own implications
banks lent $30B to FRC in March & they are going to want to be made whole if FRC goes under
the nervousness over certain banks in US is certainly understandable
Another big question is what would the end of Yen carry trade do to USD? Imagine when BOJ no longer defends a 0% interest rate and all that JPY comes back
Things are going in the right direction, but need more time to observe
More to shift away from USD is this shift away from UST to gold. Huge jump here for Singapore. UST is rapidly losing its status as reserve asset to gold
Again, there are serious inflationary effects to this
A lot of incremental gains right now, but be patient for more results to show up in Yuan internationalization
not a surprise here. Chinese banks are seeing the effects of increasing Russian usage of Yuan
Again, there are serious inflationary effects to this
A lot of incremental gains right now, but be patient for more results to show up in Yuan internationalization
not a surprise here. Chinese banks are seeing the effects of increasing Russian usage of Yuan