Renminbi (RMB)/Yuan Appreciation & Internationalization

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henrik

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Abominable said:
SWIFT is irrelevant, it's a payment processing method. De-dollarisation is what counts.

It doesn't matter what the EU say or do. If major EU companies start writing contracts and taking payments in yuan because of inflation induced depreciation of the dollar/euro is bad business that's good enough.
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An alternative for SWIFT is very important step of allowing the world to avoid any western sanctions. The BRICS countries are now setting up such a banking system with its own credit cards system free from western influence.
 
siegecrossbow

siegecrossbow

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Abominable said:
SWIFT is irrelevant, it's a payment processing method. De-dollarisation is what counts.

It doesn't matter what the EU say or do. If major EU companies start writing contracts and taking payments in yuan because of inflation induced depreciation of the dollar/euro is bad business that's good enough.
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CIPS -- making Taylor the only relevant SWIFT since 2015.
 
tphuang

tphuang

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Bolivia looking to trade in RMB. Makes sense given the comment about Latam above
https://twitter.com/i/web/status/1658049868584333312

A couple of articles from global times on greater usage of RMB, CIPS and also BRICS currency. A lot of noise. I think BRICS currency would be very hard to accomplish. At the same time, it will also be hard for India and possibly other countries to accept RMB
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tphuang

tphuang

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The outstanding balance of all foreign currency swaps was 109 billion yuan ($15.6 billion) at the end of March, according to data released by the People’s Bank of China on Monday. That was 20 billion yuan more than the level at the end of 2022, the second-biggest quarterly jump on record. The PBOC didn’t break down which nations had used the facility.
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Currency swap or cross border loans could be the few choices China’s trade partners have to accumulate yuan when they’re mostly running trade deficits with the country, he said.
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Basically China is lending money to other countries so they can trade in Yuan.
 
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luminary

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in latest move towards ‘de-dollarization’​
The Interior Ministry has said that violators of this ban will be subject to legal punishment, including fines and even jail time

The Iraqi government issued a
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on 14 May outlawing the use of the US dollar for both personal and business transactions, coming as part of a growing ‘
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’ trend and an overall decline in Washington’s
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influence.

The ban was enforced on 14 May and aims to boost the use of Iraq’s local currency, the dinar.

It is also designed to reduce the gap between the official government exchange rate and the exchange rate offered by the black market, which continues to fluctuate and has resulted in price surges.

In a statement, the Iraqi Interior Ministry said: “The dinar is the national currency in Iraq. Your commitment to transact in it instead of foreign currencies boosts the country’s sovereignty and economy.”

The ministry added that anyone dealing in currencies other than the local currency would be subject to legal punishment and said that it is committed to “hold accountable anyone who attempts to undermine the Iraqi dinar and the economy.”

In order to properly enforce the ban, the Interior Ministry’s Crime Directorate has requested that traders sign agreements assuring the government that they will conduct transactions in local currency only.

According to General Hussein Al-Tamimi of the Crime Directorate, violators of these pledges will be forced to pay a fine of one million Iraqi dinars, adding that repeat offenders may be subject to prison time.

“If the violator repeats it, he will face an imprisonment penalty of up to one year plus a one-million Iraqi dinar financial fine. In case of a third violation, that penalty will be doubled, and we will have the business license turned,” the official added.

US dollars are already scarce in the country’s official markets as a result of recently imposed measures by Washington to control the movement of dollars inside Iraq. While the new government of Mohamed Shia al-
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has moved swiftly to contain the financial fallout, these US policies have given rise to a debate inside Iraq about the benefits of de-dollarization.

Iraqi MP and member of the Finance Committee in Iraq’s Council of Representatives, Hussein Mouanes, told
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in an exclusive interview earlier this month that “Iraq has been and continues to be a slave to the US dollar … every country’s economic strength depends on the strength of its currency.”

“It is clear that Iraq is economically dominated by the US, and our government does not truly control or have access to its own money … We believe that it is crucial to move away from the hegemony of the dollar, especially as it has become a tool to impose sanctions on countries. It is time for Iraq to rely on its local currency,” he added.
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