Tuesday, October 23, 2012

7 of 10 Asian Countries abandon U.S. dollar for Chinese Yuan now.

Bet this won't be on MSM any time soon.





7 of 10 Asian Countries have now pegged their currency to the Chinese Yuan instead of the U.S. dollar now. 



It is estimated by 2015 the Yuan/Renminbi will be a currency traded fully and internationally. 

With all the unlimited printing of the dollar 2015 might come faster.

Portions:

A "renminbi bloc" has been formed in East Asia, as nations in the region abandon the US dollar and peg their currency to the Chinese yuan a major signal of China's successful bid to internationalize its currency, a research report has said.

And now seven out of 10 economies in the region — including South Korea, Indonesia, Malaysia, Singapore and Thailand — track the renminbi more closely than they do the US dollar. Only three economies in the group — Hong Kong, Vietnam, and Mongolia — still have currencies following the dollar more closely than the renminbi, said the report, posted on the institute's website.

Wang Jianhui, chief economist with Southwest Securities Co Ltd, agreed. "Investors are looking for new reserve currencies at a time when both the dollar and euro are under pressure. This is a good opportunity for the yuan," he said.

The Royal Bank of Scotland predicted in a report on Monday that renminbi will become a fully convertible currency in 2015.

Cross-border trade settled in renminbi will triple to 6.5 trillion yuan ($1.03 trillion) within three years as relations with the world's second-largest economy grow, Royal Bank of Scotland Group PLC was quoted as saying by Bloomberg on Oct 9.

Settlements will grow 12 to 20 percent this year, reaching $1.03 trillion in two years, up from $330.8 billion in 2011, said Janet Ming, head of the China desk for RBS in Europe, Middle East and Africa.

 In fact, trade is also propelling the rise of the renminbi outside East Asia. The currencies of India, Chile, Israel, South Africa and Turkey all now follow the renminbi closely, in some cases, more so than the dollar. The renminbi would be more attractive if the country could further liberalize its financial and currency markets, the report said.

7 comments:

  1. Jct: The US has to pick a war with its creditor China soon since it can't pay its debts. Check history and it's always debtor nations rising up in debtors' revolutions to ovethrow their loanshark master nations or to be subdued into debt slavery again. Throughout all of history, the debtor ends up having to make war on the creditor to stiff the debt. Other nations rejecting using US chips for Chinese ones will really speed up the process.

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    1. Wow, you really have a false sense of history. You're just has death dumb and blind has the rest of the ignorant mass. Not one nation in all of human history has ever gone to wart with it's "loanshark master". Prove me otherwise King of the Paupers. I will also add that the U.S. imposed on China U.S. debt; and not the other way around.

      " We have created a monster " - How to Start a Cold War
      https://www.youtube.com/watch?v=6jrSwj4yYcc

      Delete
  2. The wording of the headline and the implication is a little off. The op ed at the Peterson Institute http://www.iie.com/publications/opeds/oped.cfm?ResearchID=2245 mostly refers to how those currencies are "tracking" or moving up and down with, the dollar or yuan. The dollar certainly is finished in the long term, but short term it has not really happened yet, the dollar has not been abandoned yet.

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    1. I took it from the first line of the article from China Daily: They used the word "abandon." See below.....

      A "renminbi bloc" has been formed in East Asia, as nations in the region abandon the US dollar and peg their currency to the Chinese yuan

      Delete
  3. Yes. It's merely tracking. In simply words, Asian Currency are more likely to move up or down with the RMB than compared to the USD. They are merely fluctuating with a basket of currencies of the World's major currencies and trading partners. Since China was already their largest trading partner, it probably makes more sense to limit the volatility in the exchange rate of their currencies with China's RMB.

    ReplyDelete

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