China and UAE ditch US Dollar, will use Yuan for oil trade

[fallstuff]

China and UAE ditch US Dollar, will use Yuan for oil trade


NEW YORK (Commodity Online): The US dollar is fast losing out its reserve currency status with China aggressively replacing the dollar with the Yuan as a currency for bi-lateral trade. The latest is an agreement signed between the China and the United Arab Emirates (UAE), which will use the Yuan for oil trade.



The deal is worth around $5.5 billion dollars and the Chinese central bank said that the deal aims at “strengthening bilateral financial cooperation, promoting trade and investments and jointly safeguarding regional financial stability”



Earlier, Russia and Iran had decided to use Rubles as a means of currency. With both China and Russia converting their bi-lateral trades into non-US dollar deals, the greenback is now under threat of losing out its status as the world reserve currency. And the impact of such a transition will essentially tip the balance of global power.


link:

China and UAE ditch US Dollar, will use Yuan for oil trade | [url]www.commodityonline.com | 3[/url]

 

[below_freezing]

I'm scared of whats gonna happen to UAE, is there going to be "arab spring" in Dubai? Coup? Will their planes show Israeli and USAF planes in green?

 

[SXNJ]

UAE is the biggest Chinese goods importer in middle east, I'm not surprised about this news

 

[Imran Khan]

more and more bad time coming to US $ it will take 10 more years when world slowly and completely moved from $$

 

[kawaraj]

the US cannot even hold a bush as UAE is a tiny commercial nation.

 

[tombrady]

UAE must be stupid to go against us.

 

[kawaraj]

UAE must be stupid to go against us.

nope, they are smart, enough to be,

teaming with the rising, ditching the falling....

 

[Chinese-Dragon]

Good business decision from the UAE.

 

[Chinese-Dragon]

My fatherland will soon rule the world

LOL Indian, we don't call it "Fatherland".

 

[HongWu]

Oh, so the petrodollar is dead. Is it time for the US to go hyper now?

 

[Chinese-Dragon]

Oh, so the petrodollar is dead. Is it time for the US to go hyper now?

They went hyper before, but this is a whole different scenario from Iraq.

And a different scenario compared to the USSR as well.

We've already had loads of currency agreements with several different countries, and they haven't said a word.

 

[HongWu]

I meant hyperinflation

 

[Mosamania]

This must be the result of Wen's visits here.

 

[Al Bhatti]

January 18, 2012

UAE, China central banks sign pact

The People's Bank of China and the Central Bank of the UAE entered into a 35 billion yuan currency swap agreement

The People's Bank of China and the Central Bank of the UAE entered into a 35 billion yuan (Dh20 billion) currency swap agreement, the Chinese central bank said in a statement yesterday.

The agreement is aimed at "strengthening bilateral financial cooperation, promoting trade and investments, and jointly safeguarding regional financial stability," the Chinese central bank said.

The three-year agreement can be further extended, the PBOC said.

Cooperation

Chinese Premier Wen Jiabao is on an official visit to Saudi Arabia, the UAE and Qatar from January 14 to 19.

China "is ready to work with the UAE to further deepen and broaden practical cooperation between the two countries," Wen said, China's state-owned People's Daily reported on its website yesterday.

gulfnews : UAE, China central banks sign pact

 

[Al Bhatti]

January 19, 2012

UAE will gain from building ties with China

Currency swap and energy agreements could change nature of international trade

The UAE and China have signed several agreements to strengthen their strategic partnership and bilateral trade. These agreements will not only boost the economies of both countries, but also have the potential to change the flow and structure of regional and international trade.

One of the most important agreements is the announcement that the UAE and China have signed a currency swap worth 35 billion yuan. This is part of an ongoing effort by China to make its currency one of the mediums of international trade. Given the continued political and economic mismanagement of the dollar by the US, the strengthening of alternative currencies for international trade is necessary.

By taking part in the currency swap, at a time when the yuan is increasingly being used in international trade, the UAE is stating its commitment to expanding trade and commerce with the second biggest economy in the world.

To better insulate itself from the financial turmoil in Europe and the economic problems in the US, it is necessary that the UAE build commercial and political relationships with new international powers. Despite the global financial turmoil, the Chinese economy is still expanding at an impressive rate, with 8.9 per cent growth reported for the last quarter of 2011. While there are some concerns about the Chinese economy, for now its problems are those of success.

The agreement to share and develop cost-effective green energy technologies is also particularly important, given that both countries have significant amounts of carbon emissions. Not only will this reduce their impact on the global environment, but this will make them leaders in an industry to which the international community is increasingly turning to meet its energy requirements.

By strengthening their partnership in these difficult times, the UAE and China are ensuring that they will be an integral part of the new world economic order.

gulfnews : UAE will gain from building ties with China