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Post by jeffolie on Dec 6, 2010 13:32:04 GMT -6
Yuan replaces Dollar The Dollar as the reserve currency is losing ground as other countries avoid using the Dollar as the medium of exchange by directly exchanging their own currencies. Dollar demand declines as its function as the world's trading currency is bypassed. ===================================================== Yuan grows as trading currency December 6, 2010 The Chinese government has been urging its foreign trading partners to pay for transactions in Chinese yuan instead of U.S. dollars. Not only does this help China from accumulating more U.S. dollars that they really don’t want, but it also raises the important of the yuan in the global financial pecking order. 67,359 foreign companies are now paying for their transactions in yuan and the value of those yuan transactions is 700% higher than in 2009. blog.uncommonwisdomdaily.com/yuan-grows-as-trading-currency-5824
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Post by agito on Dec 6, 2010 13:45:48 GMT -6
that's a smart trade. almost as smart as gold, maybe smarter, I'd have to think on that. If you put your money on the yuan, all you are doing is pegging yourself to the dollar, until such time that the chinese government finds the manipulation is too high maintenance, in which case they will dump their dollar holdings and the yaun will increase in value.
The only downsides 1) stability- if their happens to be a chinese revolution, the money is gone. But that's not likely. 2)Nationalization- also not very likely- but china is a dictactor country, especially in respect to finances.
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Post by fredorbob on Dec 7, 2010 0:23:16 GMT -6
that's a smart trade. almost as smart as gold, maybe smarter, I'd have to think on that. If you put your money on the yuan, all you are doing is pegging yourself to the dollar, until such time that the chinese government finds the manipulation is too high maintenance, in which case they will dump their dollar holdings and the yaun will increase in value. The only downsides 1) stability- if their happens to be a chinese revolution, the money is gone. But that's not likely. 2)Nationalization- also not very likely- but china is a dictactor country, especially in respect to finances. Invest in Communism *thumbs up with smile* Greed is never that smart.
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Post by waltc on Dec 7, 2010 0:45:58 GMT -6
Doubtful, the Yuan is just another fiat currency and the nation is utterly dependent on exporting their crap to the U.S. in order to sustain their economy.
If we tank, there is no one else out there to feed their monster export machine. Germany ain't gonna take up the slack since they are a closed shop import wise. They got the money but aren't stupid like Americans. The rest of Europe is a basket case.
Brazil? They are a exporter not a importer. When we croak they ride the train with us.
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Post by jeffolie on Dec 7, 2010 12:04:18 GMT -6
China to Pay Rubles for Timber and Seafood 06 December 2010 Reuters Quote: China wants to pay in rubles for Russian timber, coking coal and seafood, as the two countries seek to boost bilateral trade in national currencies, Russian Central Bank official Viktor Melnikov said Monday. MICEX will start trading in yuan-ruble on Dec. 15 to support bilateral trade ties, Igor Marich, a vice president of the bourse, told a conference. This move follows the launch of the forex pair in China on Nov. 22. Russia is trying to raise the profile of the ruble and has called for a reduction in reliance on the U.S. dollar as a global reserve currency. China, Moscow's second-largest trading partner after the European Union, is interested in establishing long-term supplies of oil and gas from Russia. Marich said the daily volume of the yuan-ruble trading is expected to average 3 billion yuan ($450.2 million) with the trading session lasting for one hour from 10 a.m. Moscow time. About 40 banks have demonstrated interest in trading Chinese currency against the ruble, and five of them will act as market makers, including VTB, My Bank — Russia's affiliate of Chinese ICBC bank — and a local subsidiary of Bank of China, Marich said. China accounts for 9.5 percent of Russia's foreign trade. Bilateral trade rose to $41.8 billion in the first nine months of 2010 compared with $26.7 billion a year ago, according to the Russian Federal Customs Service. www.themoscowtimes.com/business/article/china-to-pay-rubles-for-timber-and-seafood/425780.html
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