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China on Monday announced direct trading between the renminbi and Singapore dollar beginning Tuesday, marking another step toward internationalizing the Chinese currency.
The announcement by China Foreign Exchange Trading System (CFETS) extended the yuan's list of direct onshore trade to more major currencies, including the U.S. dollar, the euro, British sterling, Japanese yen, Australian dollar, New Zealand dollar, Malaysian ringgit and Russian ruble.
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With direct trading of their currencies, China and Singapore will be less dependent on the U.S. dollar to settle bilateral trade and investment deals.
Previously, the exchange rate between the two currencies was calculated based on the yuan-U.S. dollar central parity rate and the Singapore dollar-U.S. dollar rate.
Now that the two currencies can be directly traded, the yuan-Singapore dollar rate will be set based on the average prices offered by market makers before the opening of the interbank foreign exchange market.
Mindlessly (or maybe not) - we seem to be digging our own grave regarding reserve currency status. Too much debt. Too much printing of new money. We are at a point that we need to borrow money just to pay the interest. I think it's purposeful, as these people are too smart to be THAT stupid.
There is prior instances of what takes place when a country's currency hits the brick wall. Strangely enough - it took place at the same time as the attacks on the World Trade Center. See Argentina 2001...
China on Monday announced direct trading between the renminbi and Singapore dollar beginning Tuesday, marking another step toward internationalizing the Chinese currency.
The announcement by China Foreign Exchange Trading System (CFETS) extended the yuan's list of direct onshore trade to more major currencies, including the U.S. dollar, the euro, British sterling, Japanese yen, Australian dollar, New Zealand dollar, Malaysian ringgit and Russian ruble.
... With direct trading of their currencies, China and Singapore will be less dependent on the U.S. dollar to settle bilateral trade and investment deals.
Previously, the exchange rate between the two currencies was calculated based on the yuan-U.S. dollar central parity rate and the Singapore dollar-U.S. dollar rate.
Now that the two currencies can be directly traded, the yuan-Singapore dollar rate will be set based on the average prices offered by market makers before the opening of the interbank foreign exchange market.
Mindlessly (or maybe not) - we seem to be digging our own grave regarding reserve currency status. Too much debt. Too much printing of new money. We are at a point that we need to borrow money just to pay the interest. I think it's purposeful, as these people are too smart to be THAT stupid.
There is prior instances of what takes place when a country's currency hits the brick wall. Strangely enough - it took place at the same time as the attacks on the World Trade Center. See Argentina 2001...
Like the idea, will see how things will work in practice !!
Mindlessly (or maybe not) - we seem to be digging our own grave regarding reserve currency status. Too much debt. Too much printing of new money. We are at a point that we need to borrow money just to pay the interest. I think it's purposeful, as these people are too smart to be THAT stupid.
These tid-bits of China/RMB liberalization have been going on the past few years. It is still a meager change, but IMO it is inevitable that the RMB will see more world presence moving forward. But our world will be a larger economic place by the time the RMB competes for significant world investments over the next generation. So that doesn't mean the demise of the USD by any means.
But where the heck do you think all the new RMB will come from?
while the RMB would be used far more and more in a global world, it won't come close to matching the US dollar in its strength, at least not for the next 40 years.
I can't say what would happen after 40 years, as the US might be very different than, but as an Asian, the "soft power" value of the US dollar is far higher than that of the chinese RMB.
while the RMB would be used far more and more in a global world, it won't come close to matching the US dollar in its strength, at least not for the next 40 years.
I can't say what would happen after 40 years, as the US might be very different than, but as an Asian, the "soft power" value of the US dollar is far higher than that of the chinese RMB. Plus, the US dollar is still widely traded.
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