China buying oil from Iran with yuan

[Fanling Monk]

You missed my point. I am not advocating USA or dollar. It was a economy point of view. Hard currency is something stable. All favouring countries make resevor of it. If this happen for yuan now guess who will buy yuan in most percentages ??? USA.
Strange ??? If your currency is second hard currency in the market first currency buy most of it and suddenly sell it at lower rates causing the fluctuations in currency value. Something like that happen to Euro. Plus keeping yuan value stable will be harmful to local industry. So I think China won't try it officially. It's in Chinese business interest that other countries accept payments in yuan so they have to have buy from China. Not because they want it to make globale currency. Not still next 1/2 decades or earlier if USA fall down which is most unlikely
So points need to yuan become a hard currency
1. Biggest economy of the world - China
2. Second biggest economy of world - 40/50 % lower than China.

China's aim is not to make yuan the international reserved currency in substitute of the dollar. She just want yuan as an alternative currency for her trading partners to use if the dollar is not viable as it happens now concerning Iran, India and China. China's economy is substantial enough for yuan to take that role now.

 

[below_freezing]

You missed my point. I am not advocating USA or dollar. It was a economy point of view. Hard currency is something stable. All favouring countries make resevor of it. If this happen for yuan now guess who will buy yuan in most percentages ??? USA.
Strange ??? If your currency is second hard currency in the market first currency buy most of it and suddenly sell it at lower rates causing the fluctuations in currency value. Something like that happen to Euro. Plus keeping yuan value stable will be harmful to local industry. So I think China won't try it officially. It's in Chinese business interest that other countries accept payments in yuan so they have to have buy from China. Not because they want it to make globale currency. Not still next 1/2 decades or earlier if USA fall down which is most unlikely
So points need to yuan become a hard currency
1. Biggest economy of the world - China
2. Second biggest economy of world - 40/50 % lower than China.

lol if you think there's any hard requirements. US did it with just 1 word to King Faisal.

 

[Great-M]

China's aim is not to make yuan the international reserved currency in substitute of the dollar. She just want yuan as an alternative currency for her trading partners to use if the dollar is not viable as it happens now concerning Iran, India and China. China's economy is substantial enough for yuan to take that role now.

Exactly what I am saying but our Pak friends think different
But it's NOT a real solution to the problem. A real solution would be creating a parallel finatial system that can with stand USA pressures. China-India-Russia should come together on this part

lol if you think there's any hard requirements. US did it with just 1 word to King Faisal.

USA did it when there wasn't a competition. USSR failed to recognise this threat. Saddam try to solve it but you know ....
Still USA is lot bigger economy in the world. And most of countries have their reservoir in USD.

 

[Tshering22]

Exactly what I am saying but our Pak friends think different
But it's NOT a real solution to the problem. A real solution would be creating a parallel finatial system that can with stand USA pressures. China-India-Russia should come together on this part

Not possible man. Why? Apart from obvious discomfort, there are a host of other economic related differences:

- our economies operate on different patterns and models: Russia operates on natural resources, oil&gas and hi-tech commercial and military products; China relies on its massive exporting of consumer goods for everyday use while we rely on limited exports of natural resources, raw materials and rely more on service industry.

- Our currencies VS the US$ are totally different. Ruble to $$ is around 1:30, Renminbi to $$ is around 1:6 while Rupee to $$ is the worst right now at 1:53. Now imagine the hell that would be to create a common currency system. EU tried that stuff with technically only 3-6 capable European economies (UK, France, Germany, Spain, Sweden, Norway & Netherlands) and it almost sank most of their continent.

We cannot afford to create a common currency right now when INR is on a spiral downward, poor governance is dominating and there's absolutely no trace of our national money where it should be.

We need a new advanced economic model to integrate to the level of Russia and China and only then it is possible.

Apart from this, do you think that this would be possible when we and the Reds are on a collision course? Hardly.

USA did it when there wasn't a competition. USSR failed to recognise this threat. Saddam try to solve it but you know ....
Still USA is lot bigger economy in the world. And most of countries have their reservoir in USD.

Well, even if we do manage to create a substitute hypothetically, expect a hell lot of terror attacks in R-I-C countries courtesy a military intelligence agency and a hell lot of "domestic" troubles.. if you get my idea. Since RIC is too powerful to be taken down militarily, this would be another method adopted.

 

[Korean]

What can Iran do with Yuan bills?

Nothing much. Iran needs Dollars and Euros to survive, not Yuans.

 

[manofwar]

What can Iran do with Yuan bills?

Nothing much. Iran needs Dollars and Euros to survive, not Yuans.

Actually, they seem to be doing pretty well with Yuan too...

 

[Fanling Monk]

. China-India-Russia should come together on this part

There are too many egos to tame among this group. Before any political bickering even started the Yuan is already up and running for China's trading partners.

 

[fd24]

What can Iran do with Yuan bills?

Nothing much. Iran needs Dollars and Euros to survive, not Yuans.

Attempt to read through the posts and you will see why and what Iran can do with the Yuan - in particular look at the post 15 as a good example of what can be done. The dollar is a failing currency, daily devalued and internationally with the recent quantitative easing program its throwing it even further into the doldrums...

 

[Tshering22]

There are too many egos to tame among this group. Before any political bickering even started the Yuan is already up and running for China's trading partners.

Well I didn't know Russia had problems with you guys in economics as well. Ours, yes it does exist.

Yuan right now is good for bilateral trade from China's POV since it would make those countries dependent on you for their trade.

 

[below_freezing]

Well I didn't know Russia had problems with you guys in economics as well. Ours, yes it does exist.

Yuan right now is good for bilateral trade from China's POV since it would make those countries dependent on you for their trade.

No problems with Russia. China and Russia trade in RMB and ruble. You buy RMB you effectively buy anything that China can import. Turns out Japan and China also trade in RMB and Yen. And then it turns out Iran could be importing from Japan and no one knows.

 

[Fanling Monk]

Well I didn't know Russia had problems with you guys in economics as well. Ours, yes it does exist.

Yuan right now is good for bilateral trade from China's POV since it would make those countries dependent on you for their trade.

India doesn't have problems with China either. It's just that for these 3 to come up with a common currency is very time consuming so one of our currencies will have to use. China believes Yuan is strong enough for her and her trading partners. China already expanding Yuan's tradings in different FOREX markets so that her partners can reverse back to their local currencies if they so desired.

 

[Indian009]

Not possible man. Why? Apart from obvious discomfort, there are a host of other economic related differences:

- our economies operate on different patterns and models: Russia operates on natural resources, oil&gas and hi-tech commercial and military products; China relies on its massive exporting of consumer goods for everyday use while we rely on limited exports of natural resources, raw materials and rely more on service industry.

- Our currencies VS the US$ are totally different. Ruble to $$ is around 1:30, Renminbi to $$ is around 1:6 while Rupee to $$ is the worst right now at 1:53. Now imagine the hell that would be to create a common currency system. EU tried that stuff with technically only 3-6 capable European economies (UK, France, Germany, Spain, Sweden, Norway & Netherlands) and it almost sank most of their continent.

We cannot afford to create a common currency right now when INR is on a spiral downward, poor governance is dominating and there's absolutely no trace of our national money where it should be.

We need a new advanced economic model to integrate to the level of Russia and China and only then it is possible.

Apart from this, do you think that this would be possible when we and the Reds are on a collision course? Hardly.




Well, even if we do manage to create a substitute hypothetically, expect a hell lot of terror attacks in R-I-C countries courtesy a military intelligence agency and a hell lot of "domestic" troubles.. if you get my idea. Since RIC is too powerful to be taken down militarily, this would be another method adopted.

Dude that M guy got banned again. Hope not for saying India-China-Russia
On topic
Parallel Finatial system is keyword here. It has nothing to do with economies of the countries like China India and Russia. It is more like a trading mechanism rather than establishing common currency and settling exchange rates. That's different thing. That's called unification of economies. RIC setting up parallel finatial system will be nightmare for western countries. These 3 countries contain more than half of the world market. So this finatial system will be a hit on spot. I personally belive that Sadaam was killed because he started taking payments in customer currency and trying to influence OPEC to do so.


For Bolded part it's never one way trafic. Even if India will not do much about these things but Russia and may be China too reply such things in same manner to the concern people as it will be a joint interest - business nothing personal

 

[Indian009]

India doesn't have problems with China either. It's just that for these 3 to come up with a common currency is very time consuming so one of our currencies will have to use. China believes Yuan is strong enough for her and her trading partners. China already expanding Yuan's tradings in different FOREX markets so that her partners can reverse back to their local currencies if they so desired.

No need to use common currency. Just setup the "parallel finatial system" to current west dominant system. Parallel not only.
The use of such system should inhance the trade transations building of economies and markets and helping the member states in their hour of need. A perfect trade body that can work with USD INR yuan and rubel too. Let the individual exchange rates be decide by market itself according to hard currency no problems

 

[Sugarcane]

What can Iran do with Yuan bills?

Nothing much. Iran needs Dollars and Euros to survive, not Yuans.

Dude Iranians have 3 decades of experience to bypass sanctions, IMO they must have thought more than you before accepting yuan

 

[fd24]

That's you THINK TANK analysis? Bowing, balls and uncle sam … this is why they made you a supposedly exalted poster here that should have a more intellectual thought process.

Firstly whats my think tank status got to do with the thread? You jump from thread to thread pointing my status out - well spotted but i dont understand why you say nothing on topic?
I note the only thing you can do is point out words in my post like "balls". Yet another gay attempt to derail the thread? - come on JayAtl - dont you think you could say something on topic ?
India as always will bow to the mighty USA and fall into line by not buying oil - so they get the "pat on the back". Typical and expected. Anyway the thread was about commending Iran and China getting closer links established - point achieved.