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Wednesday, April 24, 2013

CHINA - CURRENCY RESERVES - Renminbi the currency reserve to come - Renminbi Währungsreserven der Zukunft

Australien hat mit China ein neues Handelsabkommen geschlossen. Es erlaubt den direkten Umtausch von australischen Dollars in chinesische Renminbis. Dieser kleine Schritt könnte grosse Konsequenzen haben.
Dieser kleine Schritt ist schon der zweite (Iran) kleine Schritt.

Australie and China have concluded to exchange the Australien Dollar directly for Chinese Renminbis. This small step may turn out to have great consequences for other reserve currencies.

Internationalizing the Renminbi
by Lynne Cockerell and Michael Shoory*
The Chinese authorities have introduced reforms over the past few years aimed at increasing the use of the renminbi (RMB) in international trade and investment. This article outlines the recent developments, focusing in particular on the offshore market for RMB and the RMB trade settlement scheme.

These initiatives have been supported by the signing of bilateral local currency swap agreements between the People's Bank of China (PBC) and other central banks, including the Reserve Bank of Australia.

This small Step is already the second (Iran) small step.

Qualifikation einer Währung als Reservewährung
Eine Währung kann dann als Währungsreserven verwendet werden, wenn diese Reserven gegen Güter eingetauscht werden können, die von der dazugehörigen Volkswirtschaft bereit gestellt werden können. Beim Renminbi ist dies der Fall. Guthaben in Renminbi können zur Bezahlung von in China hergestellte Güter verwendet werden.

Requirements for a Currency to be used as Currency Reserves

A currency can be used as currency reserves if those reserves can be exchanged for goods provided by the related economy. This is the case with China's Renminbi. Assets can be used to buy goods entirely produced in China.

Aufschwung Chinas nicht zu bremsen: USA werden gezwungen werden, Güter an China zu liefern
Im Fall von den riesigen Währungsreserven, welche China in USD hält, gilt dies ebenso. Die Amerikaner werden eines Tages gezwungen sein, den Chinesen technologisch hochwertige Güter gegen deren Reserven zu verkaufen. Andernfalls könnte China die USA unter Umständen zum Abbau ihrer eigenen Devisenreserven zwingen.

China's economic Pickup will force the USA to deliver even hightech goods to China
In the case where China is holding the main bulk of its reserves in USD this is valid too. One day to come the americans will be forced to sell sophisticated technological products to China. If not China can force the USA to reduce their own foreign currency reserves simply by buying EUR, GBP and others against USD.
further accounts on Renminbi used as Currency Reserve

Friday, May 18, 2012
OIL - IRAN - CHINA - USA - Iran's oil sales are credited in Chinese Renminbi - US-$ as well as EUR to be crowded out as world currency in the future
Hidden parallel economic universe is about to emerge. OECD figures restricted to USD and EUR trade figures. Renminbi figures never are subject to OECD statistics. World trade volume not known anymore.

Thursday, March 26, 2009
CHINA - urges new global reserve currency - People's Bank of China governor Zhou Xiaochuan is on the right track is very wise to ask for a new widely accepted currency like Poeple's Bank of China's governor Mr. Zhou Xiaochuan does.
copyright  thomas ramseyer