Renminbi (RMB)/Yuan Appreciation & Internationalization
- Thread starter supercat
- Start date
Payment using Mbridge in action. Even though in AED, still promising trend for China I would think
LME looking to store metals in HK. We will see what this means
LME looking to store metals in HK. We will see what this means
"China’s Yuan replaces US dollar, Euro as Russia’s ‘primary’ foreign currency for overseas economic activity: Russian central bank governor Elvira Nabiullina says the Yuan’s share in Russia’s exports has increased from 0.4 to 34.5 per cent over the last two years."
well, we should look up what % of Russia's trades are with China, it's probably > 34.5%. So I'd like to know what % of non-China trades are priced in RMB
We know at least some such transactions are happening. For example Russia agreed with Bangladesh that they would pay the loan to build the Rooppur nuclear power plant in Yuan.
30 Russian banks seem to have joined CIPS.
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Chinese ''RMB'' exceeds the dollar in China-Hungary trade amid stronger connectivity
If one thing could epitomize the stronger connectivity between China and Central and Eastern Europe, it is the rising use of their own currencies to settle trade and investment.
During these years, serving as the yuan clearing bank beginning 2015, Bank of China Hungary Branch's clearing network has continued to expand, with the yuan clearing volume increasing year by year. And, the currency has now become the main channel for customs clearing.
This year, the bank's clearing volume is expected to exceed 200 billion yuan ($27.4 billion), with settlement volume likely to exceed 30 billion yuan, providing convenience for bilateral trade and investment between enterprises of the two countries, Li Kexin, CEO of Bank of China (Central and Eastern Europe) and General Manager of Bank of China Hungary Branch, told the Global Times in an exclusive interview.
The trend toward yuan clearing and settlement came as the connectivity between China and the Central and Eastern country is developing rapidly in terms of trade and investment, facilitated by the joint construction of the Belt and Road Initiative (BRI), despite the West's "decoupling" rhetoric against China.
Another reason behind the growth is that enterprises on both sides are embracing the yuan as a new alternative and more reliable currency to the US dollar. The latter's growing clearing cost is making it less and less favorable to traders and investors, experts said.
Gaining a foothold
This year marks the 10th anniversary of the BRI, and it also commemorates the 20th year of Bank of China (Central and Eastern Europe) presence in Hungary. As the first operational financial institution that China established in the Central and Eastern European region, with Hungary as its hub, it extends its reach across the entire region through its subsidiary branches in Prague, Vienna, and Bucharest, and the internationalization of yuan is the core of its task.
As the sole yuan clearing bank in the Central and Eastern European region, authorized by China's central bank, the institution, in addition to actively promoting various cross-border yuan transactions, offers a range of financial services to Chinese and Hungarian businesses, including supporting the development of Chinese enterprises in the local market through services such as providing financial guarantees.
Moreover, they put particular emphasis on assisting customers in exploring the Chinese market, participating in the joint initiative, and expanding yuan-related services, Li said.
The fast development of yuan internationalization in Central and Eastern Europe is closely tied to the strengthening of trade and investment relations between China and the countries in that region, as Zhao Qingming, a Beijing-based veteran financial expert, told the Global Times.
Bilateral trade cooperation has overcome the impact of the COVID-19 and grown rapidly despite facing external headwinds, while Hungary has become one of China's most important trading partners in Central and Eastern Europe.
Bilateral trade volume reached a milestone of $15.52 billion in 2022, an increase of 84 percent from 2013, when the BRI was first proposed.
In terms of financial cooperation, Hungary has become China's largest investment destination in Central and Eastern Europe.
If one thing could epitomize the stronger connectivity between China and Central and Eastern Europe, it is the rising use of their own currencies to settle trade and investment.
During these years, serving as the yuan clearing bank beginning 2015, Bank of China Hungary Branch's clearing network has continued to expand, with the yuan clearing volume increasing year by year. And, the currency has now become the main channel for customs clearing.
This year, the bank's clearing volume is expected to exceed 200 billion yuan ($27.4 billion), with settlement volume likely to exceed 30 billion yuan, providing convenience for bilateral trade and investment between enterprises of the two countries, Li Kexin, CEO of Bank of China (Central and Eastern Europe) and General Manager of Bank of China Hungary Branch, told the Global Times in an exclusive interview.
The trend toward yuan clearing and settlement came as the connectivity between China and the Central and Eastern country is developing rapidly in terms of trade and investment, facilitated by the joint construction of the Belt and Road Initiative (BRI), despite the West's "decoupling" rhetoric against China.
Another reason behind the growth is that enterprises on both sides are embracing the yuan as a new alternative and more reliable currency to the US dollar. The latter's growing clearing cost is making it less and less favorable to traders and investors, experts said.
Gaining a foothold
This year marks the 10th anniversary of the BRI, and it also commemorates the 20th year of Bank of China (Central and Eastern Europe) presence in Hungary. As the first operational financial institution that China established in the Central and Eastern European region, with Hungary as its hub, it extends its reach across the entire region through its subsidiary branches in Prague, Vienna, and Bucharest, and the internationalization of yuan is the core of its task.
As the sole yuan clearing bank in the Central and Eastern European region, authorized by China's central bank, the institution, in addition to actively promoting various cross-border yuan transactions, offers a range of financial services to Chinese and Hungarian businesses, including supporting the development of Chinese enterprises in the local market through services such as providing financial guarantees.
Moreover, they put particular emphasis on assisting customers in exploring the Chinese market, participating in the joint initiative, and expanding yuan-related services, Li said.
The fast development of yuan internationalization in Central and Eastern Europe is closely tied to the strengthening of trade and investment relations between China and the countries in that region, as Zhao Qingming, a Beijing-based veteran financial expert, told the Global Times.
Bilateral trade cooperation has overcome the impact of the COVID-19 and grown rapidly despite facing external headwinds, while Hungary has become one of China's most important trading partners in Central and Eastern Europe.
Bilateral trade volume reached a milestone of $15.52 billion in 2022, an increase of 84 percent from 2013, when the BRI was first proposed.
In terms of financial cooperation, Hungary has become China's largest investment destination in Central and Eastern Europe.
this would seem to be important
Should encourage more trading with African countries in RMB
Should encourage more trading with African countries in RMB
the USD is essentially a tribute system the Chinese did back in the days.
Trade settle in USD. One problem for other nations, they don't use USD. So other nations like SA/China/ Ger/Jpn will buy USD backed bond (fed), to get some interest. Fed then print money like a mad man, and the money goes back to US company, because wealth fare cheques will be spent buying cheap chinese goods in walmart... etc
Walmart buy more cheap chinese goods, cycle repeats
