AIIB vital to meet Asia's funding needs: Indonesia FinMin
Sri Jegarajah | See Kit Tang
Tuesday, 30 Jun 2015 | 7:15 PM ET
CNBC.com
Indonesia's Finance Minister has defended the structure of the new Asian Infrastructure Investment Bank (AIIB), saying that the China-backed institution would ensure projects it funded were high quality and delivered with appropriate governance.
Speaking to CNBC, Bambang Brodjonegoro said the AIIB was adhering to the best practices as followed at its international counterparts such as the World Bank and the Asian Development Bank.
"Indonesia has been involved in the discussion regarding the establishment and governance of AIIB. So far, we are satisfied because experiences from the World Bank and ADB have been used fully in the discussion. In fact, we're trying to improve what have been doing well, both in the World Bank and ADB, in order to make the AIIB better," Brodjonegoro told CNBC on Tuesday.
The remarks come after 50 founding members of the AIIB on Monday signed the articles of agreement outlining how the new international bank would be run. Indonesia is one of the countries who took part in the signing ceremony in Beijing, alongside the U.K, Germany, Australia and South Korea.
The $50 billion AIIB, which aims to support infrastructure development in lower- and middle-income Asian countries, has been viewed by some as a rival to the Western-dominated World Bank and ADB. The U.S. and Japan have notably declined to join the China-led economic outreach project, citing concerns over debt sustainability, environmental protection and governance.
There are also worries that Beijing could use the AIIB to push its own geopolitical and economic interests as a rising power, considering that voting rights are determined by gross domestic product (GDP) and capital contribution, which will give the world's second-largest economy an outsized say in the multilateral financial institution.
According to the Articles of Agreement, "regional countries" such as Asia and the Middle East region will shoulder 75 percent of the total capital base while "non-regional countries" such as European nations will contribute the remaining 25 percent.
Reuters reported that China will hold a 30.34 percent stake in the AIIB, rendering it the largest shareholder, and that Beijing will have 26 percent of the voting rights. India is the second-biggest shareholder with an 8.4 percent stake, while Russia is third with a 6.5 percent stake. ... more
http://www.cnbc.com/id/102797670
Topic: China "Can't Believe Its Luck" On Investment Bank (Read 3620 times)
With all the money they have, they must have been told from an insider...
The World's Biggest Economies Are About to Feel the Impact of China's Slowdown
Commodity, reprocessing and developed country exporters should brace for the impact of weakening China demand this year
by Malcolm Scott Ailing Tan
June 23, 2015 — 4:00 PM GMT
Emerging markets and commodity suppliers have grappled with reduced demand from China as a property downturn weighed on the world's second-largest economy.
U.S., Japanese and German exporters did better, supplying capital goods like machines that China still demanded. That may soon change, according to a study of global exposure to China by UBS Group AG economists Donna Kwok, Wang Tao and Jennifer Zhong.
"As the multiyear Chinese property downshift continues to unfold beyond this year, we may see a longer-term decline in China's appetite for foreign industrial imports,'' the analysts wrote in a report June 22. "Commodity, reprocessing, and developed country exporters alike should brace themselves for the impact of weakening China demand this year, irrespective of whether U.S. or EU imports pick up.''
That's not good news for a world economy increasingly reliant on China. ... more
http://www.bloomberg.com/news/articles/2015-06-23/world-s-biggest-economies-to-feel-china-chill
Commodity, reprocessing and developed country exporters should brace for the impact of weakening China demand this year
by Malcolm Scott Ailing Tan
June 23, 2015 — 4:00 PM GMT
Emerging markets and commodity suppliers have grappled with reduced demand from China as a property downturn weighed on the world's second-largest economy.
U.S., Japanese and German exporters did better, supplying capital goods like machines that China still demanded. That may soon change, according to a study of global exposure to China by UBS Group AG economists Donna Kwok, Wang Tao and Jennifer Zhong.
"As the multiyear Chinese property downshift continues to unfold beyond this year, we may see a longer-term decline in China's appetite for foreign industrial imports,'' the analysts wrote in a report June 22. "Commodity, reprocessing, and developed country exporters alike should brace themselves for the impact of weakening China demand this year, irrespective of whether U.S. or EU imports pick up.''
That's not good news for a world economy increasingly reliant on China. ... more
http://www.bloomberg.com/news/articles/2015-06-23/world-s-biggest-economies-to-feel-china-chill
galdur
Just to remember, first design of 1 yuan banknote, circulated in the beginning of 1930s.
It seems unlikely that they expected such result of their actions.
Just to remember, first design of 1 yuan banknote, circulated in the beginning of 1930s.
It seems unlikely that they expected such result of their actions.
Hmm, he looks somewhat Chinese in that drawing. Artistic licence I´m sure. That note is from the Chinese Soviet Republic of the 30´s when Chairman Mao was an up and coming man.
galdur
Just to remember, first design of 1 yuan banknote, circulated in the beginning of 1930s.
It seems unlikely that they expected such result of their actions.
Just to remember, first design of 1 yuan banknote, circulated in the beginning of 1930s.
It seems unlikely that they expected such result of their actions.
The PetroYuan Is Born: Gazprom Now Settling All Crude Sales To China In Renminbi
Submitted by Tyler Durden on 06/09/2015 11:25 -0400
Two topics we’ve deemed critically important to a thorough understanding of both global finance and the shifting geopolitical landscape are the death of the petrodollar and the idea of yuan hegemony.
Last November, in “How The Petrodollar Quietly Died And No One Noticed,” we said the following about the slow motion demise of the system that has served to perpetuate decades of dollar dominance:
Two years ago, in hushed tones at first, then ever louder, the financial world began discussing that which shall never be discussed in polite company - the end of the system that according to many has framed and facilitated the US Dollar's reserve currency status: the Petrodollar, or the world in which oil export countries would recycle the dollars they received in exchange for their oil exports, by purchasing more USD-denominated assets, boosting the financial strength of the reserve currency, leading to even higher asset prices and even more USD-denominated purchases, and so forth, in a virtuous (especially if one held US-denominated assets and printed US currency) loop.
The main thrust for this shift away from the USD, if primarily in the non-mainstream media, was that with Russia and China, as well as the rest of the BRIC nations, increasingly seeking to distance themselves from the US-led, "developed world" status quo spearheaded by the IMF, global trade would increasingly take place through bilateral arrangements which bypass the (Petro)dollar entirely. And sure enough, this has certainly been taking place, as first Russia and China, together with Iran, and ever more developing nations, have transacted among each other, bypassing the USD entirely, instead engaging in bilateral trade arrangements.
Falling crude prices served to accelerate the petrodollar’s demise and in 2014, OPEC nations drained liquidity from financial markets for the first time in nearly two decades:
By Goldman’s estimates, a new oil price “equilibrium” (i.e. a sustained downturn) could result in a net petrodollar drain of $24 billion per month on the way to nearly $900 billion in total by 2018. The implications, BofAML notes, are far reaching: "...the end of the Petrodollar recycling chain is said to impact everything from Russian geopolitics, to global capital market liquidity, to safe-haven demand for Treasurys, to social tensions in developing nations, to the Fed's exit strategy.”
Shifting to the idea of yuan hegemony, China is aggressively pushing its Silk Road Fund and Asian Infrastructure Investment Bank.
The $40 billion Silk Road Fund is backed by China’s FX reserves, the Export-Import Bank of China, and China Development Bank and seeks to increase ROIC for Chinese SOEs by investing in infrastructure projects across the developing world, while the $50 billion AIIB is funded by 57 founding member countries (the US and Japan have not joined) and will serve to upend traditionally dominant multilateral institutions which have failed to respond to the rising influence and economic clout of their EM membership. China will push for the yuan to play a prominent role in the settlement of AIIB transactions and may look to establish special reserves in both the AIIB and Silk Road fund to issue yuan-denominated loans.
Back in early November, SWIFT data showed that 15 new countries had joined a list of nations settling more than 10% of their trade deals with China in yuan. "This is a good sign for [yuan] adoption rates and internationalisation. In particular, Canada's [yuan] usage for payments, which has increased greatly over this period, is very interesting since we have not seen strong adoption of the [yuan] from North America to date,” Astrid Thorsen, Swift's head of business intelligence said.
Earlier that month, China and Russia indicated that going forward, more trade between the two countries would be settled in yuan. From Reuters, last November:
Russia and China intend to increase the amount of trade settled in the yuan, President Vladimir Putin said in remarks that would be welcomed by Chinese authorities who want the currency to be used more widely around the world.
Spurred on by their often testy relations with the United States, Russia and China have long advocated reducing the role of the dollar in international trade.
Curtailing the dollar's influence fits well with China's ambitions to increase the influence of the yuan and eventually turn it into a global reserve currency. With 32 percent of its $4 trillion foreign exchange reserves invested in U.S. government debt, China wants to curb investment risks in dollar.
The quest to limit the dollar’s dominance became more urgent for Moscow this year when U.S. and European governments imposed sanctions on Russia over its support for separatist rebels in Ukraine.
"As part of our cooperation with this country (China), we intend to use national currencies in mutual transactions.The initial deals for rouble and yuan are taking place. I want to note that we are ready to expand these opportunities in (our) energy resources trade," Putin said at the time, suggesting that going forward, Russia may look to settle sales of oil in yuan.
Sure enough, Gazprom has confirmed that since the beginning of the year, all oil sales to China have been settled in renminbi. From FT:
Russia’s third-largest oil producer, is now settling all of its crude sales to China in renminbi, in the most clear sign yet that western sanctions have driven an increase in the use of the Chinese currency by Russian companies.
Russian executives have talked up the possibility of a shift from the US dollar to renminbi as the Kremlin launched a “pivot to Asia” foreign policy partly in response to the western sanctions against Moscow over its intervention in Ukraine, but until now there has been little clarity over how much trade is being settled in the Chinese currency.
Gazprom Neft, the oil arm of state gas giant Gazprom, said on Friday that since the start of 2015 it had been selling in renminbi all of its oil for export down the East Siberia Pacific Ocean pipeline to China.
Russian companies’ crude exports were largely settled in dollars until the summer of last year, when the US and Europe imposed sanctions on the Russian energy sector over the Ukraine crisis...
Gazprom Neft responded more rapidly than most, with Alexander Dyukov, chief executive, announcing in April last year that the company had secured agreement from 95 per cent of its customers to settle transactions in euros rather than dollars, should the need to do so arise.
Mr Dyukov later said the company had started selling oil for export in roubles and renminbi, but he did not specify whether the sales were significant in scale.
According to Gazprom Neft’s first-quarter results issued last month, the East Siberian Pacific Ocean pipeline accounted for 37.2 per cent of the company’s crude oil exports of 1.6m tonnes in the three months to March 31.
With that, the "PetroYuan" has officially been born and while FT notes that "other Russian energy groups have been more reluctant to drop the dollar for settlement of oil sales," the fact that Russian producers are now openly considering a shift at the same time that officials in the US and Europe are openly discussing stepped up economic sanctions suggests renminbi settlements may become more commonplace going forward.
To understand why and to what extent this is significant in the current environment, consider the following from WSJ:
Officials of the Organization of the Petroleum Exporting Countries, which declined to cut oil production last year, reasoned that maintaining high production levels would protect market share in crucial importing nations.;
But Chinese customs data released Friday show that China’s crude imports from some big OPEC nations have plummeted, while imports from Russia surged 36% in 2014. Meanwhile, imports from Saudi Arabia fell 8% and those from Venezuela dropped 11%.
To summarize: Western economic sanctions on Russia have pushed domestic oil producers to settle crude exports to China in yuan just as Russian oil is rising as a percentage of total Chinese crude imports. Meanwhile, the collapse in crude prices led to the first net outflow of petrodollars from financial markets in 18 years, and if Goldman's projections prove correct, the net supply of petrodollars could fall by nearly $900 billion over the next three years. All of this comes as China is making a concerted push to settle loans from its newly-created infrastructure funds in renminbi.
Putting it all together, the PetroYuan represents the intersection of a dying petrodollar and an ascendant renminbi.
http://www.zerohedge.com/news/2015-06-09/petroyuan-born-gazprom-now-settling-all-crude-sales-china-renminbi
Submitted by Tyler Durden on 06/09/2015 11:25 -0400
Two topics we’ve deemed critically important to a thorough understanding of both global finance and the shifting geopolitical landscape are the death of the petrodollar and the idea of yuan hegemony.
Last November, in “How The Petrodollar Quietly Died And No One Noticed,” we said the following about the slow motion demise of the system that has served to perpetuate decades of dollar dominance:
Two years ago, in hushed tones at first, then ever louder, the financial world began discussing that which shall never be discussed in polite company - the end of the system that according to many has framed and facilitated the US Dollar's reserve currency status: the Petrodollar, or the world in which oil export countries would recycle the dollars they received in exchange for their oil exports, by purchasing more USD-denominated assets, boosting the financial strength of the reserve currency, leading to even higher asset prices and even more USD-denominated purchases, and so forth, in a virtuous (especially if one held US-denominated assets and printed US currency) loop.
The main thrust for this shift away from the USD, if primarily in the non-mainstream media, was that with Russia and China, as well as the rest of the BRIC nations, increasingly seeking to distance themselves from the US-led, "developed world" status quo spearheaded by the IMF, global trade would increasingly take place through bilateral arrangements which bypass the (Petro)dollar entirely. And sure enough, this has certainly been taking place, as first Russia and China, together with Iran, and ever more developing nations, have transacted among each other, bypassing the USD entirely, instead engaging in bilateral trade arrangements.
Falling crude prices served to accelerate the petrodollar’s demise and in 2014, OPEC nations drained liquidity from financial markets for the first time in nearly two decades:
By Goldman’s estimates, a new oil price “equilibrium” (i.e. a sustained downturn) could result in a net petrodollar drain of $24 billion per month on the way to nearly $900 billion in total by 2018. The implications, BofAML notes, are far reaching: "...the end of the Petrodollar recycling chain is said to impact everything from Russian geopolitics, to global capital market liquidity, to safe-haven demand for Treasurys, to social tensions in developing nations, to the Fed's exit strategy.”
Shifting to the idea of yuan hegemony, China is aggressively pushing its Silk Road Fund and Asian Infrastructure Investment Bank.
The $40 billion Silk Road Fund is backed by China’s FX reserves, the Export-Import Bank of China, and China Development Bank and seeks to increase ROIC for Chinese SOEs by investing in infrastructure projects across the developing world, while the $50 billion AIIB is funded by 57 founding member countries (the US and Japan have not joined) and will serve to upend traditionally dominant multilateral institutions which have failed to respond to the rising influence and economic clout of their EM membership. China will push for the yuan to play a prominent role in the settlement of AIIB transactions and may look to establish special reserves in both the AIIB and Silk Road fund to issue yuan-denominated loans.
Back in early November, SWIFT data showed that 15 new countries had joined a list of nations settling more than 10% of their trade deals with China in yuan. "This is a good sign for [yuan] adoption rates and internationalisation. In particular, Canada's [yuan] usage for payments, which has increased greatly over this period, is very interesting since we have not seen strong adoption of the [yuan] from North America to date,” Astrid Thorsen, Swift's head of business intelligence said.
Earlier that month, China and Russia indicated that going forward, more trade between the two countries would be settled in yuan. From Reuters, last November:
Russia and China intend to increase the amount of trade settled in the yuan, President Vladimir Putin said in remarks that would be welcomed by Chinese authorities who want the currency to be used more widely around the world.
Spurred on by their often testy relations with the United States, Russia and China have long advocated reducing the role of the dollar in international trade.
Curtailing the dollar's influence fits well with China's ambitions to increase the influence of the yuan and eventually turn it into a global reserve currency. With 32 percent of its $4 trillion foreign exchange reserves invested in U.S. government debt, China wants to curb investment risks in dollar.
The quest to limit the dollar’s dominance became more urgent for Moscow this year when U.S. and European governments imposed sanctions on Russia over its support for separatist rebels in Ukraine.
"As part of our cooperation with this country (China), we intend to use national currencies in mutual transactions.The initial deals for rouble and yuan are taking place. I want to note that we are ready to expand these opportunities in (our) energy resources trade," Putin said at the time, suggesting that going forward, Russia may look to settle sales of oil in yuan.
Sure enough, Gazprom has confirmed that since the beginning of the year, all oil sales to China have been settled in renminbi. From FT:
Russia’s third-largest oil producer, is now settling all of its crude sales to China in renminbi, in the most clear sign yet that western sanctions have driven an increase in the use of the Chinese currency by Russian companies.
Russian executives have talked up the possibility of a shift from the US dollar to renminbi as the Kremlin launched a “pivot to Asia” foreign policy partly in response to the western sanctions against Moscow over its intervention in Ukraine, but until now there has been little clarity over how much trade is being settled in the Chinese currency.
Gazprom Neft, the oil arm of state gas giant Gazprom, said on Friday that since the start of 2015 it had been selling in renminbi all of its oil for export down the East Siberia Pacific Ocean pipeline to China.
Russian companies’ crude exports were largely settled in dollars until the summer of last year, when the US and Europe imposed sanctions on the Russian energy sector over the Ukraine crisis...
Gazprom Neft responded more rapidly than most, with Alexander Dyukov, chief executive, announcing in April last year that the company had secured agreement from 95 per cent of its customers to settle transactions in euros rather than dollars, should the need to do so arise.
Mr Dyukov later said the company had started selling oil for export in roubles and renminbi, but he did not specify whether the sales were significant in scale.
According to Gazprom Neft’s first-quarter results issued last month, the East Siberian Pacific Ocean pipeline accounted for 37.2 per cent of the company’s crude oil exports of 1.6m tonnes in the three months to March 31.
With that, the "PetroYuan" has officially been born and while FT notes that "other Russian energy groups have been more reluctant to drop the dollar for settlement of oil sales," the fact that Russian producers are now openly considering a shift at the same time that officials in the US and Europe are openly discussing stepped up economic sanctions suggests renminbi settlements may become more commonplace going forward.
To understand why and to what extent this is significant in the current environment, consider the following from WSJ:
Officials of the Organization of the Petroleum Exporting Countries, which declined to cut oil production last year, reasoned that maintaining high production levels would protect market share in crucial importing nations.;
But Chinese customs data released Friday show that China’s crude imports from some big OPEC nations have plummeted, while imports from Russia surged 36% in 2014. Meanwhile, imports from Saudi Arabia fell 8% and those from Venezuela dropped 11%.
To summarize: Western economic sanctions on Russia have pushed domestic oil producers to settle crude exports to China in yuan just as Russian oil is rising as a percentage of total Chinese crude imports. Meanwhile, the collapse in crude prices led to the first net outflow of petrodollars from financial markets in 18 years, and if Goldman's projections prove correct, the net supply of petrodollars could fall by nearly $900 billion over the next three years. All of this comes as China is making a concerted push to settle loans from its newly-created infrastructure funds in renminbi.
Putting it all together, the PetroYuan represents the intersection of a dying petrodollar and an ascendant renminbi.
http://www.zerohedge.com/news/2015-06-09/petroyuan-born-gazprom-now-settling-all-crude-sales-china-renminbi
If you really think so, why don't move into North Korea?
Oh, waiting a minute, you just can't enter to North Korea.
Oh, waiting a minute, you just can't enter to North Korea.
Oh I see... You lack English comprehension skills as well. I said that the North Korea (or the DPRK as it is known) is better when compared to the United States. That doesn't mean that North Korea is an inhabitable place for people like me. I am currently residing in a progressive country, which respects people's privacy. Why should I move to any other country?
Are you really stupid or something?
Normally I ignore retarded people who indulge in name calling. But I'll give you one more chance, as you seems to be a low-IQ individual.
the United States of America is even worse than North Korea.
This words make you are an idiot. Not my words.If you really think so, why don't move into North Korea?
Oh, waiting a minute, you just can't enter to North Korea.
Are you really stupid or something?
Normally I ignore retarded people who indulge in name calling. But I'll give you one more chance, as you seems to be a low-IQ individual.
You think your privacy is more important than their life?
Privacy is very important, at least for me. The fact that you doesn't consider privacy as an important factor, is irrelevant here. I don't want the government guys to hear whatever I speak on the phone, or check all my video-chat records. In my opinion, a country where privacy is not respected, is not a true democracy.
United States is a dictator country? This is the funnest joke i ever heard.
For me it is not a joke. The United States is a country where individual privacy has no place. The government wiretaps every one, and all the phonecalls, video-chats and emails are rcorded and screened. Even in places such as North Korea, this doesn't happen. In my opinion, the United States of America is even worse than North Korea.
The normal North Korea people even don't have the right to use the internet.
You think your privacy is more important than their life?
Even your privacy was invasion, at least your life does not be threaten.
But for a normal North Korea people, their life was threaten by the government at any time.
One of example is a professor was executed because he has be found to watch a DVD TV series produced by
South Korea.
Their privacy for them is nonsense. Even their usual talking may be reported, which may lead them to be executed.
United States is a dictator country? This is the funnest joke i ever heard.
For me it is not a joke. The United States is a country where individual privacy has no place. The government wiretaps every one, and all the phonecalls, video-chats and emails are rcorded and screened. Even in places such as North Korea, this doesn't happen. In my opinion, the United States of America is even worse than North Korea.
If you believe Chinese can be friend with other countries, you are a fool.
China is a dictator country, they only can buy friends, but never could make a real friends.
You can't be friends with some one if you are don't share the same values.
China is a dictator country, they only can buy friends, but never could make a real friends.
You can't be friends with some one if you are don't share the same values.
Half of the world nations are under dictatorships, including the United States. Does that mean we should stop doing business with all of them? And I disagree with your argument that "You can't be friends with some one if you are don't share the same values". Take Japan and the USA for example. There is hardly anything similar between these two nations. Still, they are good friends.
You have no idea to live a real dictator country which means you can speak freedom.
So who is the dictator of USA? Obama?
I heard lots of people can criticize Obama, every american people can criticize Obama freely.
But if you are a Chinese, you criticize the president of China, or the Party of China, I can ensure you, you will be got in jail.
That's one of the different.
Who tell you Japan and the USA has no common thing?
Do you even know the Shinzo Abe's Speech to Congress of USA recently?
Forget that, you really know nothing, I realize argue with you is really makes no sense.
If you believe Chinese can be friend with other countries, you are a fool.
China is a dictator country, they only can buy friends, but never could make a real friends.
You can't be friends with some one if you are don't share the same values.
China is a dictator country, they only can buy friends, but never could make a real friends.
You can't be friends with some one if you are don't share the same values.
Half of the world nations are under dictatorships, including the United States. Does that mean we should stop doing business with all of them? And I disagree with your argument that "You can't be friends with some one if you are don't share the same values". Take Japan and the USA for example. There is hardly anything similar between these two nations. Still, they are good friends.
Is China Floating a China-Euro Currency Bloc?
It will be better for China to keep away from the Euro. The Euro is losing its value day-by-day, and I am sure that the situation will continue in the near future also. I don't think that China will be getting any benefit out of this. Why can't China float a currency bloc with the BRICS nations? India or Brazil can substitute the European Union.
China can't keep away from Euro. We Chinese government do business don't for economic benefits, but for political interests.
After Venezuela debt default about $20 billion dollars of China, but we Chinese government continue loan them about $50 billion dollars, for what?
Of course we Chinese will lose some money, but we could keep a dictator government of Venezuela.
That the Chinese government want.
Maybe Russia and brazil but china hates india.
The Sino-Indian relations have seen quite a lot of improvement in the last one year time, ever since Narendra Modi was elected as the Prime Minister of India. The Chinese seems to have realized that they have enough enemies among their neighbors, and may be it is time to woo at least some of them back to their fold. Good relations between the two nations can benefit both the sides.
China is a dictator country, they only can buy friends, but never could make a real friends.
You can't be friends with some one if you are don't share the same values.
Maybe Russia and brazil but china hates india.
The Sino-Indian relations have seen quite a lot of improvement in the last one year time, ever since Narendra Modi was elected as the Prime Minister of India. The Chinese seems to have realized that they have enough enemies among their neighbors, and may be it is time to woo at least some of them back to their fold. Good relations between the two nations can benefit both the sides.
I think a good analogy is with CNBC, Bloomberg and Fox News Business Channel. The majority of people that watch those business only channels are likely in line with Fox politically. However, when their money is on the line, they will throw ideologies out the window and watch the channel that actually gives them the most professional outlook.
No "Big Boy" nation is going to give up dollars.
No "Big Boy" nation is going to give up dollars.
Is China Floating a China-Euro Currency Bloc?
It will be better for China to keep away from the Euro. The Euro is losing its value day-by-day, and I am sure that the situation will continue in the near future also. I don't think that China will be getting any benefit out of this. Why can't China float a currency bloc with the BRICS nations? India or Brazil can substitute the European Union.
Maybe Russia and brazil but china hates india.
We even don't believe CNY by ourself. Of course CNY is worse than US dollar. Why the Investment Bank use US dollar, because no one will accept CNY.
Times are changing my friend. The Chinese government have made it clear that they want the CNY to replace the USD as the global reserve currency. And already they have received the support from a large number of other powerful nations for this initiative. For example, Russia is offloading its US Treasury Bonds, and conducting its trade with China in CNY.
http://en.wikipedia.org/wiki/Internationalization_of_the_renminbi
Not gonna happen. =)
We even don't believe CNY by ourself. Of course CNY is worse than US dollar. Why the Investment Bank use US dollar, because no one will accept CNY.
Times are changing my friend. The Chinese government have made it clear that they want the CNY to replace the USD as the global reserve currency. And already they have received the support from a large number of other powerful nations for this initiative. For example, Russia is offloading its US Treasury Bonds, and conducting its trade with China in CNY.
http://en.wikipedia.org/wiki/Internationalization_of_the_renminbi
CNY even can't compare euro and Japanese yuan. Do you think US dollar was replaced by euro or Japanese yuan.
Sure, you know,they are not .
Russian, do they really want CNY, sure they didn't, they really want is US dollar.
It's never changed.
I can tell you, CNY is one of the most inflation money in the world.
the exchange with US dollar can be keep stable because CNY is not a free exchange rate money .
Who accept CNY is a fool .
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