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Posts Tagged ‘RMB’

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: ,

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.

Professor Jiang Ruiping:”Revaluation of Japanese Yen, a historical lesson to draw: analysis”

March 21st, 2010 No comments

Under U.S. pressure, the Japanese government revalued the Japanese Yen 200% from end of 1985 through early 1988 to address the trade deficit U.S. had with Japan. Did it make any difference for the U.S.? What happened to the Japanese economy as a result of that revaluation?

Professor Jiang Ruiping, Chairman of the Department of International Economics, at the Beijing-based Foreign Affairs College had an article in the People’s Daily in September 25, 2003, titled, “Revaluation of Japanese Yen, a historical lesson to draw: analysis.”  He addressed those questions for us back in 2003.  Below is the translation by People’s Daily Online staff member Li Heng:

(For a view of the whole Yuan and Dollar exchange rate issue, have a read at one of our featured posts, “Opinion:Making Sense of the Dollar and Yuan“.) Read more…

Tall expectations on RMB

July 10th, 2008 13 comments

Here is a quick summary of Francesco Sisci’s take of what the G8 want with China’s currency RMB: Read more…

Categories: aside, News Tags: , ,