Ending dollar dominance in world market | Updates

[Muhammed45]

China about to throw down the gauntlet to the petrodollar
Published time: 13 Feb, 2018 10:15
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© Jason Reed / Reuters

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The world’s top oil importer, China, is expected to launch its long-awaited and delayed yuan-denominated oil futures contract at the end of March, according to Reuters’ sources.
The petroyuan is seen as Beijing’s challenge to the US dollar, the dominant global currency in oil contract settlements.

Read more
China about to knock out petrodollar by trading oil in yuan
The contract could reportedly be launched on March 26 on the Shanghai International Energy Exchange (INE). The exchange has recently received the approval from China’s State Council.

In December, the INE announced a successful completion of the fifth dry run in yuan-backed oil futures contract trading. It said that 149 of its members traded 647,930 lots in the rehearsal with a total value of 268.2 billion yuan. The exchange said the system met the listing requirements of crude futures after the exercise.

The Chinese government announced plans last year to start a crude oil futures contract priced in yuan and convertible into gold. The contract will enable the country's trading partners to pay with gold or to convert yuan into gold without the necessity to keep money in Chinese assets or turn it into US dollars.

Since the 1970s, the global oil trade has almost entirely been conducted in US dollars. The largest energy consumer, China, is interested in having oil contracts in its own currency. Beijing wants to create an Asian crude oil benchmark that would better reflect pricing for the oil imported and consumed in the world’s top importing region Asia. It expects the new benchmark to rival North Sea Brent and US West Texas Intermediate.

Analysts say the success of the yuan oil futures contract depends on the Chinese regulation of the market, which could divert international investors from bringing huge volumes into the contract.
https://www.rt.com/business/418638-china-yuan-oil-futures/

 

[Muhammed45]

Russia & China dumping US treasuries
Published time: 16 Mar, 2018 12:01Edited time: 16 Mar, 2018 15:07
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© Jo Yong-Hak / Reuters

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Moscow and Beijing have cut their holdings in US Treasury securities. Russia sold $5.3 billion in January and has sunk to 16th place of the largest holders of American debt.
It is the lowest level for the country since February last year.

“We absolutely do not hold American securities exclusively. The main thing is that these securities should be liquid. So should be the state that issued them,” said Russian Finance Minister Anton Siluanov in an interview with NTV this week.

Read more
Imminent collapse of US dollar & other major currencies will push gold to $10,000 – bullion analyst
Russia also invests in the securities of European countries.

“We are ready to invest in the securities issued by other sovereign states, the main thing is that they should be low-risk and accordingly bring income,”Siluanov said.

China also sold nearly $17 billion in American bonds in January. Although Beijing is still the largest holder of US Treasuries, the total amount of Treasuries in its reserves has dropped to a minimum since July last year.

One of the largest investors in US government bonds remains the Cayman Islands. The small tax-friendly country has invested almost $242 billion in the American debt, on par with a holder as large as the United Kingdom.

The third-largest buyer of American debt is Ireland, investing $327.5 billion in US debt securities. Ireland is also considered a tax haven for American companies, and was involved in the Apple Inc. tax scandal.

https://www.rt.com/business/421498-russia-dumping-us-treasuries/

 

[Mr ambassador]

Russia & China dumping US treasuries
Published time: 16 Mar, 2018 12:01Edited time: 16 Mar, 2018 15:07
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[emoji767] Jo Yong-Hak / Reuters

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Moscow and Beijing have cut their holdings in US Treasury securities. Russia sold $5.3 billion in January and has sunk to 16th place of the largest holders of American debt.
It is the lowest level for the country since February last year.

“We absolutely do not hold American securities exclusively. The main thing is that these securities should be liquid. So should be the state that issued them,” said Russian Finance Minister Anton Siluanov in an interview with NTV this week.

Read more
Imminent collapse of US dollar & other major currencies will push gold to $10,000 – bullion analyst
Russia also invests in the securities of European countries.

“We are ready to invest in the securities issued by other sovereign states, the main thing is that they should be low-risk and accordingly bring income,”Siluanov said.

China also sold nearly $17 billion in American bonds in January. Although Beijing is still the largest holder of US Treasuries, the total amount of Treasuries in its reserves has dropped to a minimum since July last year.

One of the largest investors in US government bonds remains the Cayman Islands. The small tax-friendly country has invested almost $242 billion in the American debt, on par with a holder as large as the United Kingdom.

The third-largest buyer of American debt is Ireland, investing $327.5 billion in US debt securities. Ireland is also considered a tax haven for American companies, and was involved in the Apple Inc. tax scandal.

https://www.rt.com/business/421498-russia-dumping-us-treasuries/

I think It is impossible in this method.




dollar can collapse (If ) russia and China make a NON-DOLLAR TRADE UNION and leave WTO . Eventually the economic slave states sanctioned by the USA will jump to join this union . Moreover many countries who are in fear of sanctions will also join this NON-DOLLAR TRADE UNION.

 

[Muhammed45]

I think It is impossible in this method.




dollar can collapse (If ) russia and China make a NON-DOLLAR TRADE UNION and leave WTO . Eventually the economic slave states sanctioned by the USA will jump to join this union . Moreover many countries who are in fear of sanctions will also join this NON-DOLLAR TRADE UNION.

Russia is almost out of WTO, China I'm not sure

EU countries needs a second choice to save themselves from buying American debt, Russia is providing it by investing in their currencies. Let's wait and see

 

[Mr ambassador]

Russia is almost out of WTO, China I'm not sure

EU countries needs a second choice to save themselves from buying American debt, Russia is providing it by investing in their currencies. Let's wait and see

The non- dollar trade union with new standard currency will be the best choice for EU and many poor states.

It will destroy the policy of ;


""My paper currency is more valauble than your natural resources and human sweat ""


The world economy stands on inequality.

 

[Taimoor Khan]

26th is the date when petro yuan will be born. No wonder we are seeing much noise these days coming from US under different pretext.

 

[Wolfhunter]

Yeah this has nothing to do with Europe or Russian affairs. Should be in Chinese or World affairs!

 

[Muhammed45]

Death of US dollar? China launches petro-yuan to challenge greenback’s dominance
Published time: 26 Mar, 2018 09:32
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© Ohde / Global Look Press

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The highly anticipated yuan-backed crude oil futures have been launched in Shanghai. China is the world’s biggest oil consumer, with eyes on rival benchmarks Brent and WTI as well as the US currency.
Trading of the new oil futures contracts for September settlement started on the Shanghai International Energy Exchange at 440.20 yuan ($69.70) per barrel, reports Chinese daily the South China Morning Post. Some 18,540 lots have reportedly been sold and purchased so far.

China set to roll out petro-yuan before year end, dollar dominance demise looms? https://t.co/TiaiXjIB0Npic.twitter.com/iqmm0FRvKr

— RT (@RT_com) October 28, 2017
The long-awaited step evoked a surge in global prices for oil with Brent Crude soaring to $71 a barrel for the first time since 2015. US crude benchmark West Texas Intermediate (WTI) reached the highest level in three years at $66.55 per barrel, before retreating to $65.53.

Experts see China’s yuan-dominated contracts as historic as the new futures symbolize the first time that foreign investors can access a Chinese commodity market. The launch ends years of setbacks and delays since the country’s first attempt at listing the securities in 1993.

At the same time, the petro-yuan launch is seen as a blow to the US dollar that has been weakening in recent months. The US dollar is the predominant settlement currency for oil futures contracts. On Monday, the greenback slipped to a 16-month low against the Japanese yen, but remained steady against a basket of six major currencies.

Oil surging to multi-year highs as China launches petro-yuanhttps://t.co/jwBwKblRH6

— RT (@RT_com) March 26, 2018
Chinese authorities have reportedly accelerated the launch amid growing crude imports. Last year, the country outpaced the US as the world’s number one importer of oil. Thus, the contracts may not only help to win some control over pricing from the major international benchmarks, but also promote the use of Chinese currency in global trade.

The greenback will get weaker, as soon as other nations have a real credible alternative to it, Ann Lee, Adjunct Professor of Economics and Finance at New York University and author of the book ‘What the US Can Learn From China’, told RT.

“It is more of a game changer for the US. As soon as other nations have a real credible alternative to the US dollar, they can dump dollars and switch to the yuan which can spark a dollar crisis. If that happens, not only will there be inflation from the tariffs, but also from the flood of dollars,” said Lee.

For more stories on economy & finance visit RT's business section

 

[Muhammed45]

Petro-yuan helps Russia & China dump US dollar in oil trade
Published time: 27 Mar, 2018 13:50
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FILE PHOTO: A valve is seen at the Kozmino oil-loading port in the bay of Kozmino, about 100 km (62 miles) east of Russia's far eastern city of Vladivostok © Yuri Maltsev / Reuters

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China is the world's biggest crude consumer and buys most of its oil from Russia. However, most settlements are still in US dollars. The launch of the petro-yuan now allows Moscow and Beijing to use national currencies instead.


Read more
No respect for elders: China's new oil benchmark crushing old-timer Brent
China and Russia are actively reducing dependence on the dollar in bilateral trade. In October 2017, Beijing launched a payment system for transactions in yuan and Russian rubles. This means that settlements for Russian oil deliveries to China, which have reached 60 million tons per year, can be done without using the dollar.

After Monday's launch of the yuan-backed oil futures in Shanghai, there have been negotiation between Russia and China on mutual promotion of oil futures in national currencies, RIA Novosti reported. In 2016, the St. Petersburg exchange in Russia launched Urals oil futures in the Russian ruble, and support from China could prop up Russian crude futures.

China's new oil benchmark had a hugely successful debut. On the first day of trading in Shanghai, 62,500 contracts with more than 62 million barrels of crude traded for a notional value of nearly 27 billion yuan ($4 billion), Zerohedge reported. Glencore, Trafigura, Freepoint Commodities and other huge oil-trading corporations took part.

Russia held its position as China's largest crude oil supplier in February. Russia supplied 5.052 million tons, or 1.32 million barrels per day (bpd) last month, up 17.8 percent from a year earlier, according to Reuters, quoting the Chinese General Administration of Customs.

The increase in volume happened as a result of a second Sino-Russian oil pipeline, which began operations on January 1. It doubled China’s capacity to pump oil from the East Siberia-Pacific Ocean (ESPO) system. ESPO connects Russia and China with a direct pipeline.

For more stories on economy & finance visit RT's business section
https://www.rt.com/business/422472-russia-china-petro-yuan/

 

[Muhammed45]

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As trade war heats up, China hints at early ‘Petro-Yuan’
Published time: 30 Mar, 2018 12:25Edited time: 30 Mar, 2018 15:44
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© Murad Sezer / Reuters

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In its efforts to make its currency more international and break the US dollar’s global dominance, China is in the early stages of preparing to paying for oil imports in yuan, sources told Reuters.
China could launch a pilot program to pay for oil in yuan as early as the second half of this year, according to sources.

Local regulators have asked a few financial institutions to get ready for pricing Chinese oil imports in yuan, the three sources at some of the financial institutions said.

Death of US dollar? China launches petro-yuan to challenge greenback’s dominance https://t.co/1H3N8Ts6JFpic.twitter.com/RVW5NBpJPw

— RT (@RT_com) March 26, 2018
One of the sources speculated that China could begin the test with paying in yuan for the oil it imports from Russia and Angola, although the source said they had no details of anything so specific being discussed.

The Chinese plans to pay in yuan for oil are at early stages and officials at some of the Chinese state-held oil companies told Reuters they were not aware of such plans.

China is the world’s biggest oil importer and the volumes of its imports are closely watched by market analysts to gauge the pace of oil demand growth, the key growth driver of the global oil market.

The world’s top crude oil importer switching to yuan for oil payments could have potentially huge implications on global oil trade, on the internationalization of the yuan, and on the US dollar oil trade.

Petro-yuan helps Russia & China dump US dollar in oil tradehttps://t.co/4hySSMmfpLpic.twitter.com/J8uPIIB60u

— RT (@RT_com) March 28, 2018
Oil—the world’s most actively traded commodity—has an annual trade worth $14 trillion, which is roughly equivalent to the value of the Chinese gross domestic product (GDP) in 2017, according to Reuters calculations.

The report of China planning to test paying for oil in yuan as early as this year comes as the country this week launched its yuan-denominated crude oil futures in Shanghai—a move that analysts see as helping China to internationalize and promote its currency.

This article was originally published on Oilprice.com
https://www.rt.com/business/422776-trade-war-petro-yuan/

 

[Muhammed45]

China can succeed with petro-yuan where Gaddafi failed – killing the US dollar in oil trade
Published time: 31 Mar, 2018 06:05
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Libya's leader Muammar Gaddafi attends a celebration of the 40th anniversary of his coming to power at the Green Square in Tripoli September 1, 2009. © Zohra Bensemra / Reuters

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Muammar Gaddafi wanted to shatter the dominance of the greenback in the Middle East by introducing gold-backed dinar, but failed. China has a chance to finish what he started, one industry expert has told RT.
“Ideas related to oil trade in currencies other than the dollar arose more than once. Some of them were severely suppressed by the United States, one example is Muammar Gaddafi, who proposed the introduction of a regional currency gold dinar and trading oil in the Middle East in this currency,” Aleksandr Egorov, foreign exchange strategist at TeleTrade, told RT.

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Petro-yuan helps Russia & China dump US dollar in oil trade
However, this time, an attempt to oust the dollar could be successful. China has launched oil futures backed by yuan, and Beijing has what Gaddafi didn’t, according to the expert.

“Along with the Chinese role in the global economy and the growing interest in the renminbi, China is also protected by a nuclear shield. It can afford to try to shatter the monopoly in oil trade. This will give even more weight to the Chinese yuan. In addition, China's economy is the world's largest consumer of oil, and consequently, all world producers of raw materials will have to reckon with the strategy of the Chinese authorities,” Egorov said.

According to the analyst, the timing for the launch of the petro-yuan is perfect. Key oil producers Russia, Iran and Venezuela are under pressure from US sanctions, and it is a good moment for them to ditch the dollar in oil trade and substitute it with the yuan.

Mikhail Mashchenko, an analyst at social network for investors eToro, agrees. “From the point of view of Russia's geopolitics, it is certainly beneficial to reduce the role of the dollar in foreign trade. And it has been done, let’s recall the record growth of the country's gold reserves. The other states that are constantly under the threat of new sanctions, like Iran and Venezuela, can profit, too. The contracts in RMB will allow to trade oil without US approval,” he told RT.

READ MORE: Why petro-yuan may become biggest game-changer of all time in capital markets

Both analysts agree that it will take time before the petro-yuan can become a real threat to the dollar. China needs to win the support of the world's largest oil producers Russia and Saudi Arabia, or the initiative is doomed, says Mashchenko. He added that the yuan is fully controlled by Beijing, which could also spook potential investors.

For more stories on economy & finance visit RT's business section

@Adam WANG SHANGHAI MEGA my best wishes buddy, may petro Yuan succeeds.

https://www.rt.com/business/422838-petro-yuan-dollar-gaddafi/

 

[Adam WANG SHANGHAI MEGA]

As long as China is strong enough, no one is an equal opponent of China. This rule also applies to any country.

 

[Muhammed45]

China to slap US with up to 25% bigger import tariffs in trade war retaliation
Published time: 1 Apr, 2018 17:06Edited time: 1 Apr, 2018 17:51

© Aly Song / Reuters

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Beijing is hiking up tariffs on more than 128 US imports, including fruit and pork, as part of a tit-for-tat response to US President Donald Trump’s $60 billion package of tariffs imposed against China.
The additional fares, which range from 15 to 25 percent, will take effect on Monday, the Chinese Finance Ministry said on theirwebsite. It added that the measure, aimed at “safeguarding China’s interests,” was in response to Washington’s package of tariffs targeting more than 100 types of Chinese goods, from clothing to electronics.

Read more
China hits back at Trump, announces retaliatory tariffs on $3bn of US goods
The statement said China has suspended duty concessions on imported goods originating from the US, and has imposed a duty rate of 15 percent on 120 items of imports, such as fruits and products. The tariff rate for eight items of imported goods, such as pork and food products, is now 25 percent.

China’s current tax-free and tax-exemption policy “remains unchanged,” the ministry noted, adding that the move comes in compliance with multilateral trading mechanisms and rules of the World Trade Organization (WTO).

Announcing the package of tariffs on March 22, Donald Trump said it will help the US reduce trade imbalances with China and curb theft of American intellectual property. Earlier, his administration accused Beijing of making “state-led, market-distorting efforts to force, pressure, and steal US technologies and intellectual property."

On March 23, Beijing signaled it was ready to go toe-to-toe with Washington’s campaign against China, proposing new levies on 128 American imports. The news shook global markets, with fears of an imminent trade war between the world’s largest economies looming.

China’s Commerce Ministry also threatened to take legal action against the US through the WTO, and urged Washington to “pull back from the brink, make prudent decisions, and avoid dragging bilateral trade relations to a dangerous place.”

Fears of escalating tariffs made stock markets plunge, with a broad sell-off among investors at the time. The Dow Jones Industrial Average dropped 2.93 percent (723.43 points), it was the lowest closing value since February 8. The S&P 500 Index sank 2.52 percent (68.24 points) at the close of trading, marking its lowest level since February 9. In Asia, Japan's Nikkei tumbled more than 3 percent, to its lowest level since October 12.

Commenting on the Trump administration’s tariffs, WHO Director-General Roberto Azevedo condemned the move, saying that disrupting bilateral trade would “jeopardize the global economy at a time when economic recovery, though fragile, has been increasingly evident around the world,” as cited by the Financial Times.

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https://www.rt.com/news/422915-china-us-import-tariffs-response/

 

[Adam WANG SHANGHAI MEGA]

Next target Apple phones And GE,microsoft,Exonn mobile,Soja,......

 

[Muhammed45]

Petro-yuan to launch renminbi as global currency & kneecap petro-dollar
Published time: 7 Apr, 2018 06:43Edited time: 7 Apr, 2018 08:57
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© Thomas White / Reuters

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Yuan-backed oil futures can shatter the US dollar dominance on the crude market, according to experts polled by RT. However, the greenback will not give up the top spot easily.
“The question number one is whether China will be able to make the oil market its demand market, and not the oil supply market traded in dollars, which it is now,” Vladimir Rozhankovsky, Global FX Investment analyst, told RT. China has recently overtaken the US as the world's number one oil buyer.

Read more
China can succeed with petro-yuan where Gaddafi failed – killing the US dollar in oil trade
“The question number two is trade wars. If the world trade enters into a death spiral of reciprocal economic sanctions, keeping oil trade in dollars will be a matter of strategic importance, or a matter of survival for the US,” the analyst added.

As a result, Washington can deliberately undermine the image of the petro-yuan by attacking Chinese stock, which could result in the devaluation of the yuan, making Chinese oil futures less attractive, Rozhankovsky said.

However, the US has obvious disadvantages which the petro-yuan can capitalize on. First, the US dollar is still too strong, making domestic oil production very expensive. Second, the United States does not have transatlantic pipelines, and tankers are costly and highly risky, the analyst added.

“The trade war between the US and China has already begun. China has plans to promote the renminbi as a reserve currency and there is no better move than to purchase raw materials in its national currency. It can save money on the currency conversion and become less dependent on the US dollar,” Stanislav Werner, head of the analytical department of Dominion, told RT.

The analyst notes that the oil market is worth $14 trillion at the moment, and is bigger than the Chinese economy. “The first trading sessions were volatile, but this is a typical story for new financial instruments. The US has a serious reason to get nervous, because in many ways the hegemony of the US dollar came from oil trading in dollars,” he said.

For more stories on economy & finance visit RT's business section
@Adam WANG SHANGHAI MEGA
https://www.rt.com/business/423461-petro-yuan-us-dollar-oil/