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Posts Tagged ‘USD’

RMB-Yen currency swap starts June 2012

May 30th, 2012 9 comments

At the 4th BRICS summit, the member countries agreed to work towards currency swaps when trading among themselves. For China, this is a general trend in recent years to internationalizing the renmingbi (RMB) or yuan. At the end of 2011, 9% of China’s total trade were settled in yuan with 14 countries and regions. That’s quite a jump considering in 2010, the percentage was only 0.7! In anticipation of more agreements to come, a report by the HSBC in 2010 estimated half of China’s trade with emerging market countries by 2015 would be conducted using swaps. In other words, the report went on, “nearly USD 2 trillion worth of trade flows could be settled in renminbi annually, making it one of the top three global trading currencies.” Imagine that happening without the yuan floating. Japan and China just announced their swap agreement likely to take effect next month. As a matter of practicality, the two countries will shave $3 billion in commissions alone. What’s the political implication? Read more…

Categories: economy Tags: ,

BRICS pondering their own development bank

April 3rd, 2012 11 comments

At the latest BRICS Summit in New Delhi, the member nations have announced plans to evaluate forming their own development bank. Currency swaps between them are under way, and in fact, Russia and China are already settling bilateral trade in Rubles and RMB’s. Below is Andrew Gavin Marshall weighing in on this development on Russia Today, with commentary about the lack of coverage in the Western press on this topic:

Categories: economy Tags: ,

Russia and China pour water on U.S. ‘quantitative easing’

November 23rd, 2010 No comments

Putin and Wen announces quiting the USD

Russian President Vladimir Putin and Chinese Premier Wen Jiabao has just jointly announced in St. Petersburg to no longer use the U.S. dollar in their two country’s bilateral trade. China Daily reported the news, headlining, “China, Russia quit dollar.” This is a reaction to the yet another round of printing by the Fed ($600 billion in fact).

“Quantitative easing” are new fancy words the U.S. government use to describe printing money out of thin air. (Would you be surprised if the U.S. media do not refer to this as “currency manipulation”?) At the recent G20 Summit, world leaders were upset at the U.S. for being so irresponsible as the USD is the reserve currency for the world. If Russia and China successfully execute on this arrangement in the coming years, I think other countries could follow suit.