4 BIG NATIONS that have signed a currency deal with China IN LESS THEN 2 MONTHS!!
American power was necessary during the Cold War. Now that capital moves freely around the globe, capitalists do not require a specific national entity for any particular role. In other words, the American working class will have to pay their way in future. There are no more freebies.
Apr 13, 2013
Further appreciation predicted, which would fuel inflation on the mainland and in Hong Kong
The yuan reached a record high yesterday as the central bank fixed its midpoint against the US dollar at the strongest level ever.
That sparked anticipation of further appreciation this year and stoked inflationary pressure on the mainland and Hong Kong.
The People’s Bank of China set the midpoint at 6.2506 yuan per US dollar – up from the fixing of 6.2578 on Thursday – ahead of a visit by US Secretary of State John Kerry to Asia. The yuan jumped to 79.775 Hong Kong dollars per 100 yuan, just near the record of 79.729 on Wednesday.
“One more domino in the dollar reserve supremacy regime falls. Following the announcement two weeks ago that “Australia And China will Enable Direct Currency Convertibility“, which in turn was the culmination of two years of Yuan internationalization efforts as summarized by the following: “World’s Second (China) And Third Largest (Japan) Economies To Bypass Dollar, Engage In Direct Currency Trade“, “China, Russia Drop Dollar In Bilateral Trade“, “China And Iran To Bypass Dollar, Plan Oil Barter System“, “India and Japan sign new $15bn currency swap agreement“, “Iran, Russia Replace Dollar With Rial, Ruble in Trade, Fars Says“, “India Joins Asian Dollar Exclusion Zone, Will Transact With Iran In Rupees“, and “The USD Trap Is Closing: Dollar Exclusion Zone Crosses The Pacific As Brazil Signs China Currency Swap“, China has now launched yet another feeler to see what the apetite toward its currency is, this time in the heart of the Eurozone: Paris. According to China Daily, as reported by Reuters, “France intends to set up a currency swap line with China to make Paris a major offshore yuan trading hub in Europe, competing against London.” As a reminder the BOE and the PBOC announced a currency swap line back in February, in effect linking up the CNY to the GBP. Now it is the EUR’s turn.”
April 8, 2013
Trade between Australia and China just got a little easier.
The Australian dollar is set to become only the third currency to trade directly with the Chinese yuan — a move that will help internationalize China’s currency and smooth transactions between the major trading partners.
Australian Prime Minister Julia Gillard announced the deal Monday during a trip to Shanghai.
“Australia’s banks, superannuation funds and financial houses will be even better placed to help in the growth of China’s service economy,” Gillard said. “This is good news for the Chinese economy and good news for the Australian economy.”
26 March 2013
China and Brazil have signed a currency swap deal, designed to safeguard against future global financial crises.
The pact, first announced last year, will allow their central banks to swap local currencies worth up to 190bn yuan or 60bn reais ($30bn; £20bn).
Officials said this will ensure smooth bilateral trade, regardless of global financial conditions.
Along with being the world’s second-largest economy, China is also Brazil’s biggest trading partner.
“If there were shocks to the global financial market, with credit running short, we’d have credit from our biggest international partner, so there would be no interruption of trade,” said Guido Mantega, Brazil’s economy minister.
22 February 2013
The Bank of England is in negotiations with its Chinese counterpart on a deal likely to boost trade between the UK and China in the yuan.
The Bank and the People’s Bank of China are close to signing a three-year currency swap arrangement, governor Sir Mervyn King said.
The UK is looking to become a centre for the Chinese currency, also known as the renminbi.
Chancellor George Osborne welcomed the agreement as an “important step”.
Such agreements allow central banks to swap currencies and can be used by firms to settle trade in local currencies rather than in US dollars, as happens now, since China’s currency is not fully convertible to other currencies.
Mr Osborne added that it “cements London as the Western hub for the fast-growing renminbi market”.