It was a great setup. I don’t know why Trump got mad and overturned it. Technically the US benefited from it.
Renminbi (RMB)/Yuan Appreciation & Internationalization
- Thread starter supercat
- Start date
It was a great setup. I don’t know why Trump got mad and overturned it. Technically the US benefited from it.
Russian foreign minister says that Russia is considering taking out loans in Chinese Yuan ..
You should probably post the article link along with the headline.
They should just make a common currency unit for settlements similar to the SDR or ECU.
But what I think will happen is just transfers between Central Banks on national e-currencies. Similar to mBridge extended to all BRICS participants. China is already connecting to the UAE and Thailand in this way as it is.
But what I think will happen is just transfers between Central Banks on national e-currencies. Similar to mBridge extended to all BRICS participants. China is already connecting to the UAE and Thailand in this way as it is.
Never ever going to happen. Euro happened because these countries are under one allied umbrella backed by the domination of the US. BRICS is just countries who are great power or quasi great or regional powers who do not want to be dominated by the West. They can align their policies for that said goal but they will never give up their soverign rights and come under a common currency.
But when push comes to shove and they are put under pressure due to western sanctions. They will diversify away from the dollar. Their options are to maybe try to use other currencies but then find out that Yuan is the only one that has the economic power to be a dollar alternative, so then they reluctantly use the Yuan. This is currently happening to Russia.
Yes using the Yuan is also a possibility. Or would be if it wasn't for India.
If you read about the ECU, it's predecessor the EUA, was just a measure of gold. They basically used gold backed transactions to trade between European countries. Then when the US left the Bretton Woods system and stopped pegging the dollar to gold, it was replaced with a basket of currencies of EEC countries. This is basically the same as the SDRs used by the IMF.
If you read about the ECU, it's predecessor the EUA, was just a measure of gold. They basically used gold backed transactions to trade between European countries. Then when the US left the Bretton Woods system and stopped pegging the dollar to gold, it was replaced with a basket of currencies of EEC countries. This is basically the same as the SDRs used by the IMF.
Last edited:
this is very interesting. Just having RMB able to buy all the oil that China needs. Very bullish sign long term for RMB
Big news e-CNY app now easier for foreigners. I recall the previous e-CNY app was region locked to only China (You can't use it outside unless you spoof location), not sure about the situation now.
I've tried e-CNY in China for a while, from my experience it's not widely adopted even though local gov and banks have promotions with it the in the past few years. I secretly suspect commercial banks are sabotaging the efforts to expand e-CNY.
You can use e-CNY in a some convenience store chains even though they don't advertise it. You can use e-CNY for Meituan which has almost everything, including bike rentals. You can use e-CNY for didi (uber), subways and use it in major online shopping platforms. Overall it replaces 50% of Wechat pay, hopefully the adoption rate can increase further.
Somewhat related, I came across this video a while ago
Gray and Black markets (e.g., this Laos example) also drives up the adoption of RMB globally. Hopefully Southeast Asia can start to adopt the e-CNY ecosystem too.
I've tried e-CNY in China for a while, from my experience it's not widely adopted even though local gov and banks have promotions with it the in the past few years. I secretly suspect commercial banks are sabotaging the efforts to expand e-CNY.
You can use e-CNY in a some convenience store chains even though they don't advertise it. You can use e-CNY for Meituan which has almost everything, including bike rentals. You can use e-CNY for didi (uber), subways and use it in major online shopping platforms. Overall it replaces 50% of Wechat pay, hopefully the adoption rate can increase further.
Somewhat related, I came across this video a while ago
Gray and Black markets (e.g., this Laos example) also drives up the adoption of RMB globally. Hopefully Southeast Asia can start to adopt the e-CNY ecosystem too.
Last edited:
something to consider, if RMB pricing in gold, oil, NG and critical minerals take off, we might have something big here