Renminbi (RMB)/Yuan Appreciation & Internationalization

Maikeru

Maikeru

Major
Registered Member
Michael90 said:
The problem is China will never open up her capital markets (and for a good reason) and alow her curency to be freely traded, so the RMB will never be a major world reserve currency like the dollar or even the Euro/pound. I don't think Chinese leaders want that either. They just want or need to keep enough presence for RMB to negate any US nuclear option sanction moves against China like cutting china off swift/dollar . So China needs some.sort of alternative and option. However that doesn't means opening up her capital markets , and even more so to have a resevre cureency it has to be extremely liquid and very, very easy to convert into and out of it, something that won't be possible with the RMB for obvious reasons..So people should stop this thing of BRICS or whoever replacing the dollar . Won't happen for obvious reasons.
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Gold, with or without gold-backed stablecoin.
 
ZeEa5KPul

ZeEa5KPul

Brigadier
Registered Member
Michael90 said:
The problem is China will never open up her capital markets (and for a good reason) and alow her curency to be freely traded, so the RMB will never be a major world reserve currency like the dollar or even the Euro/pound. I don't think Chinese leaders want that either. They just want or need to keep enough presence for RMB to negate any US nuclear option sanction moves against China like cutting china off swift/dollar . So China needs some.sort of alternative and option. However that doesn't means opening up her capital markets , and even more so to have a resevre cureency it has to be extremely liquid and very, very easy to convert into and out of it, something that won't be possible with the RMB for obvious reasons..So people should stop this thing of BRICS or whoever replacing the dollar . Won't happen for obvious reasons.
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You're repeating these moneybrained platitudes like they mean anything. It doesn't matter that China's capital account is closed because people holding RMB won't be a matter of choice, but necessity. We're beginning to see China using its monopsony power to compel payment in RMB. As China's position in supply chains becomes more indispensable, it will coerce more transactions in RMB whether anyone likes it or not. The recent rare earth licensing saga was just the tip of the iceberg; there will come a day when the gloves come off.

Don't want to hold RMB? Enjoy the inflation shocks and shortages in your country as your citizens kill each other in bread lines.
 
tphuang

tphuang

General
Staff member
Super Moderator
VIP Professional
Registered Member
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More and more Western news outlet are reporting on the restructuring of debt to RMB as part of China's push to side track USD in its global dealings.

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Also looks at CIPS volume. We were up to 689B per day in September. The big jump was from 2023 to 2024 (123 to 175T)
CIPS_Volume-202510.png
 
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