China to start direct currency trading with euro

[Götterdämmerung]

Selling to and buying from China becomes cheaper, thus more trade for both sides.

 

[henry he]

Good, try harder to take US down, the the US will need VN more in containing big bad China

so you guys dicide that no matter what china be in the future ,you are always in US side??? i wish i didn't ever hear that US kill more Vietnamese than china did!

It doesn't really mean much. Just that RMB can be converted directly to the Euro and thus cutting out the other currency middleman ($). No tangible impact as I'm sure the same banks who were converting RMB-$-Euro will be converting straight to Euro but there will be slightly smaller transaction fees reducing 'friction costs' for trade.

This is just a small step, though, for the eventual free float of the RMB.

快点去汇报你们美爹吧，赶紧商量出对策啊，，这次准备往哪里送民主了？？？这些年做美国的炮灰狗外加反华先锋，有何感想？？

就台湾经济现在那种半死不活的状态，我就懒得往你伤口上撒盐了，，台湾真是我大中华区的耻辱。。。。做狗

Good, try harder to take US down, the the US will need VN more in containing big bad China

ok，tell me do you think you have a matched military power ?? otherwise ,,,are you proud to be a dog of USA ?then if the war break out ,you vietnam is willing to be the first to die ??? how smart you are

Good step but still the stationary printer yanks will keep enjoying by printing dollars for decades.



If China was not militarily strong than ship of democracy would have reached on her shores by now.

yes ,bro! really hope we can help each other,,, long live with friendship between china and pakistan

 

[henry he]

They only need u when u still a good slave, working hard to make them happy. When u become bad boy, they will teach u a hard lesson to remind u that u r just slaves working hard to make I phone 6 on time for them

poor ghost ,,,,please go to AMERICA to see what they really said !!! sorry i know that a guy like you can never afford a flights。 i really don't know where your confidence comes from !

 

[Kyle Sun]

Nice move . Dollar is the best weapon of USA,hit right on the key.
We can not change the status of dollar in short term,but we must keep trying ,many a little make a mickle.

 

[Edison Chen]

快点去汇报你们美爹吧，赶紧商量出对策啊，，这次准备往哪里送民主了？？？这些年做美国的炮灰狗外加反华先锋，有何感想？？

就台湾经济现在那种半死不活的状态，我就懒得往你伤口上撒盐了，，台湾真是我大中华区的耻辱。。。。做狗

He is from Myanmar, not Taiwan.....

 

[Kyle Sun]

Good, try harder to take US down, the the US will need VN more in containing big bad China

You are as stupid as an American pit bull terrier.

Once your master let you to bite something , you never let it go.

 

[TaiShang]

Interesting reader comment on Global Times (I quote from Chinamiah):

"Just like the US went after Saddam after he sold oil in euros. The weapons of mass destruction was a red herring. Wonder if Americans left in Iraq are still looking for them. Reminds me of the Japanese soldiers coming out of the Filipino jungles thinking that they're still at war.

Just like the US went after Ghaddafy after he sought to popularise the African dinar and use it for oil transactions.

There can be little doubt that America is panicking that the days of its dollar dominance - that allows it to exploit others - are numbered. This time from the challenges posed by the rising Chinese yuan and the explicit Russian efforts to hit back at the dollar, in retaliation for the American-imposed sanctions.

Washington cannot but notice the earth-shattering developments. The currency swaps between the PBOC and the central banks of many countries. The increasing number of trade that is today settled in yuan and gold. The Russian dumping of American bonds, and a similar switch by China from T-bills into hard American assets and gold. The growing possibility that Saudi Arabia, and others of OPEC, will allow oil to be sold in yuan. This may already be happening between China and Saudi Arabia.....after all China is Saudi Arabia's biggest customer today. Come November, the Swiss will go to the polls forbidding their central bank from selling gold and backing, at least 20% of, their currency with gold.

In the meantime, the western central banks, including the Federal Reserve, are frantically trying to cover their short gold positions by manipulating the paper gold market. And the silver market as well. But their efforts are in vain. Fall in the price of the precious metals are not inducing Asians to sell what they've bought. Why should they? Their economies are doing well, and they are not in dire need for cash. In fact, in India and China, people - like their governments - are accumulating some more gold. Now more and more countries are doing that, sensing that the collapse of the dollar is coming.

In the meantime, Obama continue to fake figures to keep the Dow from collapsing. He fears that anything can precipitate a collapse. We have come to the stage where the snow load has become so hefty, that a fall of a gentle snowflake will precipitate an avalanche. Should anyone press for good delivery of gold (like what the German Bundesbank should have done, instead of letting the US get away with returning 5 bars out of the 1,500 tons of gold stored in New York), the ponzi scheme which America is playing, will come crashing down. The Emperor will truly be shown without his clothes. End game for the US Empire."

 

[Beidou2020]

Interesting reader comment on Global Times (I quote from Chinamiah):

"Just like the US went after Saddam after he sold oil in euros. The weapons of mass destruction was a red herring. Wonder if Americans left in Iraq are still looking for them. Reminds me of the Japanese soldiers coming out of the Filipino jungles thinking that they're still at war.

Just like the US went after Ghaddafy after he sought to popularise the African dinar and use it for oil transactions.

There can be little doubt that America is panicking that the days of its dollar dominance - that allows it to exploit others - are numbered. This time from the challenges posed by the rising Chinese yuan and the explicit Russian efforts to hit back at the dollar, in retaliation for the American-imposed sanctions.

Washington cannot but notice the earth-shattering developments. The currency swaps between the PBOC and the central banks of many countries. The increasing number of trade that is today settled in yuan and gold. The Russian dumping of American bonds, and a similar switch by China from T-bills into hard American assets and gold. The growing possibility that Saudi Arabia, and others of OPEC, will allow oil to be sold in yuan. This may already be happening between China and Saudi Arabia.....after all China is Saudi Arabia's biggest customer today. Come November, the Swiss will go to the polls forbidding their central bank from selling gold and backing, at least 20% of, their currency with gold.

In the meantime, the western central banks, including the Federal Reserve, are frantically trying to cover their short gold positions by manipulating the paper gold market. And the silver market as well. But their efforts are in vain. Fall in the price of the precious metals are not inducing Asians to sell what they've bought. Why should they? Their economies are doing well, and they are not in dire need for cash. In fact, in India and China, people - like their governments - are accumulating some more gold. Now more and more countries are doing that, sensing that the collapse of the dollar is coming.

In the meantime, Obama continue to fake figures to keep the Dow from collapsing. He fears that anything can precipitate a collapse. We have come to the stage where the snow load has become so hefty, that a fall of a gentle snowflake will precipitate an avalanche. Should anyone press for good delivery of gold (like what the German Bundesbank should have done, instead of letting the US get away with returning 5 bars out of the 1,500 tons of gold stored in New York), the ponzi scheme which America is playing, will come crashing down. The Emperor will truly be shown without his clothes. End game for the US Empire."

You reduce the market share of the dollar in world trade, investment and financing, you significantly reduce the amount of money the Federal Reserve can print to buy their bonds to cheaply finance their big deficits and have such low inflation (despite printing so much dollars).

Because the dollar has such a large market share in trade, investment and financing, the dollar has a big market share of the foreign exchange market (as people need dollars for all that trade, investment and finance) which creates such big demand for dollars overseas. Most of the dollars in circulation is outside the US which keeps domestic US inflation in check. This is why the dollar having big global demand is very important.

This allows the Federal Reserve to fund its deficits cheaply (by printing dollars and buying its own bonds) and run massive current account deficits without the dollar losing value. So they can fund a massive military budget not fearing high interest payments for its deficits (like other normal countries have to do) and not worrying about getting its trade deficit down to strength the currency (like other normal countries have to do).

This allows the US to live well beyond its means in terms of living standards (strong currency and strong purchasing power) and ability to run big deficits (to fund its military) and finance those deficits cheaply requiring very low interest payments relative to how much fiscal revenue the American regime collects.

As more and more countries stop using the dollar, the market share of the dollar will decline and this will limit the amount of money the Federal Reserve can print.

The regime needs as higher market share for the dollar as possible to continue on its murderous human butchering spree all over the world.

 

[来自未来]

well done

 

[Cossack25A1]

Is Euro even stable for currency trading?

 

[rcrmj]

They only need u when u still a good slave, working hard to make them happy. When u become bad boy, they will teach u a hard lesson to remind u that u r just slaves working hard to make I phone 6 on time for them

so you told the truth, that is you lot are eagerly wanting to be U.S's lapdancer and slave, well that figured out, as you losers have to sell women to keep your economy going and maintain your international existence``lol

 

[TaiShang]

Analysts hail yuan-euro direct trading announcement
September 30, 2014, 8:20 am

A staff member counts money at Matou Town Rural Credit Cooperatives on June 20, 2011 in Linyi, Shandong Province of China [Getty Images]

Analysts have given the thumbs up to the Chinese central bank’s announcement on Monday that the Chinese currency can now be traded directly against the euro in its interbank currency market.

This would be a major boost to trade between China and the Eurozone, says Nordea. China stepped up plans to increase the international use of its currency last October with an agreement between the European Central Bank and the PBOC to swap euros and yuan.

“From today, the USD is no longer needed for trading between CNY and EUR. The two currencies can be traded direct against each other. This would lower transaction cost in EURCNY trading and push for yuan internationalization,’ said Amy Yuan Zhuang, senior Asia analyst at Noredea Research.

The yuan is now the second most-used currency in international trade after the US dollar.

“Implications for European companies are beneficial in terms of lower transaction costs in exchange and trading. Generally it will increase convenience in trade and investment between China and the Euro area. Implications for China are more important. It is a cornerstone in CNY internationalisation and it becoming a global reserve currency,” said Zhuang in an emailed statement.

Beijing is keen on substituting the US dollar with the yuan in all of China’s trade with other countries. The Chinese currency now trades directly with the Japanese yen, the Australian dollar, the Brazilian real, the EU’s euro, the New Zealand dollar and many other currencies.

“This is an important step in strengthening bilateral economic and trade connections between China and Eurozone member states. This will help lower currency conversion cost for economic entities, facilitate the use of RMB and Euro in bilateral trade and investment, promote the financial cooperation and enhance economic and financial ties between China and Eurozone member states,” said the People’s Bank of China in a statement on its website.

Earlier this month, China’s central bank said that it had authorized the Bank of China (BOC) as a clearing bank for RMB business in Paris.

BOC has so far opened more than 1,200 inter-bank RMB clearing accounts and 1.7 million RMB accounts for corporate and individual clients overseas.

Competition is fierce among Europe’s major financial centres, Frankfurt, London and Luxembourg to trade in China’s currency.

In a major highlight of an investment meet earlier this month, Moscow and Beijing have entered into a pact to boost use of the rouble and yuan for trade transactions.

 

[Viet]

Is Euro even stable for currency trading?

you have sense for humor. yes, of course.
the euro (25%) is second to dollar (61%) as foreign currency reserves.

 

[Cheetah786]

Good, try harder to take US down, the the US will need VN more in containing big bad China

Future “renminbi zone” starts to take shape: funding in renminbi is to be disbursed from a Shanghai-based multilateral organisation to emerging economy recipients to finance infrastructure projects and assist governments when liquidity crises strike.
If this future materialises, it will mean a rebalancing in global governance powers towards China and away from the “Washington consensus”. In a sense, the west has only itself to blame. The bank – which will have initial capital of $50bn and maximum allowable capital of $100bn – was formed in response to the west’s reluctance to devolve influence to emerging powers.

 

[Götterdämmerung]

Good, try harder to take US down, the the US will need VN more in containing big bad China

You should care more about your puny and useless Vietnamese Dong.

Pun was not intended.