Renminbi (RMB)/Yuan Appreciation & Internationalization

tphuang said:

https://twitter.com/i/web/status/1619024455845679105

I mean I think it makes no sense at this point to keep accumulating usd reserves. Buy more gold, stock up even more natural resources and sell more treasuries.

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More on this
record amount of gold import this year and domestic production. I wonder where all that is going.....

The latest customs data also revealed that China imported more gold from Switzerland last year and stepped up gold purchases from Russia.

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, with China buying 524 tonnes of gold worth around $33 billion, according to Swiss customs data. This is a massive increase from 354 tonnes reported in 2021 and the most since 2018.

China also bought 6.6 tons of gold from Russia in 2022, which is an increase of 67% from 2021, local Russian media reported

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With USD reserves for many countries in short supply, it should lead to more countries with RMB swaps like Pakistan directly trading with China in Yuan.

You know this is scary certain people in Washington when this kind of stories come out on Bloomberg and Forbes
What they don't seem to understand is that China is not looking to make Yuan the reserve currency, but to just increase its usage so that it can buy and sell its goods in its own currency. The end goal is to have no reserve currency or a severely weakened USD reserve currency.

tphuang said:

What they don't seem to understand is that China is not looking to make Yuan the reserve currency, but to just increase its usage so that it can buy and sell its goods in its own currency. The end goal is to have no reserve currency or a severely weakened USD reserve currency.

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Gandalf about Sauron:

He is in great fear, not knowing what mighty one may suddenly appear, wielding the Ring, and assailing him with war, seeking to cast him down and take his place. That we should wish to cast him down and have no one in his place is not a thought that occurs to his mind. That we should try to destroy the Ring itself has not yet entered into his darkest dream.

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For gold, the more the better:

The role of gold in de-dollarization - not necessarily replacing the US dollar, but setting up an alternative parallel monetary system.

A thread about de-dollarization - again, not necessarily replacing the US dollar, but setting up a parallel system:

supercat said:

For gold, the more the better:

https://twitter.com/i/web/status/1620383013342416897

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Saw a couple of claims here and there that China's actual gold reserve is around/at least 30-40 thousand tons without counting gold distributed amongst the civilian population, which is the highest in the world... I hope that's true.

But that may not be enough. China needs at least another 10-20 thousand tons of gold if she truly wants to have the power of dictation in the post-petrodollar world economy.

ACuriousPLAFan said:

Saw a couple of claims here and there that China's actual gold reserve is around/at least 30-40 thousand tons without counting gold distributed amongst the civilian population, which is the highest in the world... I hope that's true.

But that may not be enough. China needs at least another 10-20 thousand tons of gold if she truly wants to have the power of dictation in the post-petrodollar world economy.

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It probably is true. Most of it is in the form of wedding wearables for the wife.

Significant increased yuan settlement in trades last year (up 37%) and higher cross border transaction (up 16.6%).

A Chinese company bought one of the largest gold mines in South America.

More and more China-Russia trade will be conducted in their own currencies.

Yuan appreciation is a double-edged sword. On one hand it boosts nominal GDP and a nation's purchasing power on the international market. On the other hand it has some adverse effects on companies such as BYD, which want to expand export.

PBOC and ministry of commerce issues a notice to further increase the adoption of RMB for cross border usage.

didn't expect this. Part of the neoliberal establishment Nouriel Roubini now talking about "bipolar currency regime". Although to be fair, he was one of the few mainstream economic back in 2007/2008 to predict the Great Recession.

China to set up RMB clearance house in Brazil to facilitate cross-border trade and investment in RMB.

中国人民银行与巴西中央银行签署在巴西建立人民币清算安排的合作备忘录​

央行2月7日消息：近日，中国人民银行与巴西中央银行签署了在巴西建立人民币清算安排的合作备忘录。巴西人民币清算安排的建立，将有利于中巴两国企业和金融机构使用人民币进行跨境交易，进一步促进双边贸易、投资便利化。