Renminbi (RMB)/Yuan Appreciation & Internationalization
- Thread starter supercat
- Start date
This will be a real bugbear. The thing is Bangladesh imports a lot of things from China and India. Like textile fibers, fabrics, and food. But then almost all their exports of manufactures, basically knitted textiles, are to the West. Their exports to China are infinitesimal.
How will they be able to get the Yuan to pay the Russians for the nuclear power plant like they seem to want like this? They have a similar problem to India with the oil trade with Russia. Money is piling up.
I think that Russia should just resell the Bangladesh debt to private companies which can then use the debt to buy Bangladesh manufactures.
How will they be able to get the Yuan to pay the Russians for the nuclear power plant like they seem to want like this? They have a similar problem to India with the oil trade with Russia. Money is piling up.
I think that Russia should just resell the Bangladesh debt to private companies which can then use the debt to buy Bangladesh manufactures.
sell USD for RMB and they will have no problem pay both the Chinese and Russian
In the end of the day, if you have balanced trade, you can do FX transactions to get the currencies you need
this is why having stable currency is important. If China wants to attract more investment in its bond market, equity market and industries, it needs to ensure that those assets don't lose value.
Now, Chinese banks & institutions still have way too much USD denominated assets rather than converting those excesses back to RMB, because they are doing the carry trade. How else do you continue to run up these huge trade surplus which never seem to help your currency strengthen?
Now, Chinese banks & institutions still have way too much USD denominated assets rather than converting those excesses back to RMB, because they are doing the carry trade. How else do you continue to run up these huge trade surplus which never seem to help your currency strengthen?
Issue currently is that Western Capital, under direction from the US power elites, is boycotting Hong Kong because of the National Security Law. HK is supposed to be the gateway for western capital to invest in Chinese firms like SMIC, but judging by the last 12 months, HK shares have been under speculative attacks by Western capital. That's why Xi's open handed gesture to the CEOs of US firms is so important - if the Wall Street faction can overcome the natsec racial holy war aficionados, the symbiosis between the US and Chinese economies can once again benefit the world.
Typical Bloomberg article. They say that with a straight face and then hidden near the end of the article we hear about how Russia's gold reserves increased in value due to the price of gold rising. So which one is it? The Russian Central Bank only have reserves on Yuan, or they have gold reserves as well?
Russia has huge production of several mineral resources. And they can just stockpile those and use them as reserves. They already do this with gold and diamonds. It could be done with other minerals like platinum, or oil if they wanted to.
We have Hainan Free Trade Port’s first cross-border RMB settlement ship financing leasing project for a 76,000-ton Panamax bulk carrier that operates global routes
sounds like this might be a 0->1 kind of thing. Either way, good to see more settlement in RMB