Active global de-dollarization continues. Still has a special role is played here by China, which has now signed currency agreements with Canada and Qatar.
Canada thus becomes the first offshore hub for the yuan in North America, and the volume of trade between Canada and China may in the near future to double or even triple, thereby reducing the need for dollars.
But that's not the most dangerous news for the petrodollar this week. China also signed an agreement with Qatar on direct currency swaps between the two countries using the yuan.
The fact that China began thus to interact with the OPEC countries, suggests that it beats in the heart of the petrodollar system. And last strikes are more and stronger. Typically, canadian exporters forced to use American currency when trading with China, and this increases costs and leads to longer waiting the completion of the transaction.
And this is exactly what has made the canadian authorities. In particular, Stephen Harper would like to increase the number of small and medium businesses working with China, selling there products and services. The amount of the swap agreement between China and Canada is 200 billion yuan. Currency countries will be used not only in trade but also in investments.
Moreover, the Central banks of China and Malaysia announced the establishment of a clearing center in Kuala Lumpur, which will further increase the use of Renminbi in South-East Asia. And this just two weeks after the leading financial center of Asia – Singapore – became the main center for the yuan in the region, as it managed to establish a direct conversion between the Singapore dollar and the yuan.
And all this fits into the framework of the current trend. The yuan is rapidly spreading around the world as currency for trade, investment and even savings.Deposits in RMB in South Korea has increased 55 times in one year and it is stunning growth. Also you may recall that the British government became the first foreign government is planning to issue debt securities denominated in RMB.
Even the European Central Bank is discussing the possibility of including the yuan in its official reserves, while politicians around the world are increasingly emerging that a new monetary system that is not based on the dollar.Of course, in the near future the dollar will hardly feel the consequences of these actions, but in the long term the trend is obvious: the rest of the world no longer wants to rely on US dollars, and they create a new reality, America wants it or not.
Now more than 10 thousand financial institutions working with the Chinese yuan compared to 900 in 2011 And offshore operations with the yuan is estimated at $143 billion While the share of Chinese exports and imports denominated in yuan has increased nearly six-fold in three years to 12%. And if all the previous steps were just talking about dangerous trend for the United States, the conclusion of an agreement with Qatar can cause "petrodollar panic".
The petrodollar system is the heart and soul of America's domination over the global financial system and the stability of the dollar. All countries must buy dollars in order to be able to buy oil on the open market.
But on 3 November, China signed an agreement on currency swaps with Qatar. Agreement between the two countries on the equivalent of $5.7 billion, will run for three years, and Qatar has become the 24th country to open its market for the Chinese currency.
And this will be the basis for the future of the yuan in the middle East. Most interesting is that after three years the Council plans to make the yuan a fully convertible currency. Apparently, the oil-producing countries in the middle East more and more difficult to trust the US dollar, so you can expect to currency agreements with China and will join other OPEC countries.
Now almost every week China, Russia or one of the BRICS countries enter into agreements that replace the old system of trade. And many countries are gradually phasing out of the dollar due to the exported inflation. Therefore, the Chinese yuan is becoming a more viable option, especially now, when the power of economy Asia growing rapidly.
Source: http://www.vestifinance.ru/articles/49212
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