Backdoc: December 29th, 2014, 2:10 pm IMO SWAP MEET
WHAT I SEE IS CHINA DOING A SWAP MEET WITH THEIR CURRENCY! (see Article Below)
THEY SEEM TO BE TAKING ON ALL THE BAD DEBT OF THE BRICS! THAT TO ME SPELLS TROUBLE FOR ALL THE BRICS!
SHALL I SAY THE BRICS ARE CRUMBLING? HEEE HEEE
NOW YOU SEE WHY THE DONG WILL BE A DONOR CURRENCY TO THE YUAN AS I'VE BEEN TELLING YOU! DOC IMO
Ditching US dollar: China, Russia launch financial tools in local currencies
Published time: December 29, 2014 14:03
Edited time: December 29, 2014 14:42 Get short URL
China and Russia have effectively switched to domestic currencies in trading using financial tools as swaps and forwards, as they seek to reduce the influence of the US dollar and foreign exchange risks.
The agreement signed in the end of October comes into force Monday, December 29, and provides a currency swap of CNY150 billion (up to US$25 billion).
The country’s Foreign Exchange Trade System will carry out similar transactions with the Malaysian ringgit and the New Zealand dollar.
From now on yuan swaps are available for 11 currencies on the foreign exchange market.
“China won’t stop yuan globalization or capital account opening because of the volatility in emerging market currencies,” Ju Wang, a senior currency strategist at HSBC Holdings Plc in Hong Kong told Bloomberg.
China has set up bilateral currency swap lines with more than 20 countries and regions since 2009, including Switzerland, Brazil, Hong Kong, Indonesia and South Korea, Xinhua News reported in July.
A swap is a financial tool to ease transactions by exchanging certain elements of a loan in one currency, like the principal or interest payments into an equivalent loan in another currency.
Currency forward is an obligation of two parties to convert an agreed amount of one currency into another by a certain date at an exchange rate specified at the moment of signing the deal.
Russia and China have long been looking for ways to cut the dollar’s role in international trade. The question is significant for China as 32 percent, or $4 trillion of its foreign exchange reserves are in US bonds, which means there is a vulnerability to fluctuations in the exchange rate.
Russia’s foreign exchange reserves are worth $398 billion, and the US dollar accounts for about $162.45 billion.
The country’s economic growth has slowed amid a standoff with Western countries over the Ukrainian conflict. After the country’s financial sector faced EU and US sanctions it became hard for Russian businesses to raise finance in the West.
Chinese authorities are particularly interested in currency swap lines with developing countries, mainly from the Asia-Pacific region. Australia, New Zealand, Brazil, Singapore, Hong Kong, Argentina, and Malaysia are actively involved in transactions with China.
Zochowski: AFTERNOON "BACKDOC"
YOU BRING UP SOME GOOD POINTS, IF YOU DONT MIND I WANT TO ADD TO SOME.....
ISX, IS DOING WHAT THEY NEED TO.........
ARTICLES ARE ALREADY BECOMING OLD/MISLEADING/CONTRADICTORY....
FISCALLY,, WE ARE IN FIRST QUARTER OF 2015
GREGORIANLY, WE ARE BOUT TO ENTER FIRST QUARTER OF 2015,
ISLAMICALLY, WE HAVE BEEN IN THIER FIRST QUARTER SINCE OCTOBER 24TH...
FOR CHRISTMAS, I BELIEVE WE ALL GOT OUR SUPRISE PACKAGE, LOL LOL
RI FIRST THEN RV SECOND, DOWN THE ROAD..........FOR SURE.....
AS THE DOLLAR HAS HELD ITS OWN AT ROUGHLY .90 CENTS SINCE 17TH OR SO...
THATS ALL, MIGHT HAVE MISSED SOME POINTS, BUT WITH YOUR POINTS N POSSIBLY MY ADDING TO THEM WILL EITHER HELP OR HINDER..........
Moneytalks1: » December 29th, 2014, 2:17 pm
Frank and Family WOW!!!!!!! CNBC
US Dollar Currency Index (.DXY :Exchange)
Real Time Stock Quote | Source: Exchange
90.24 USD Last Trade
[bailey2..] Goals... “ When obstacles arise, you change your direction to reach your goal; you do not change your decision to get there. ”
[BigDog-OH] Copied From Twitter:
@JCR3758: There really isn't much to say. Iraq is ready and the release can literally be done at any time. No delays just waiting on them. Will happen
igDog-OH] China looking at deal with U.S. to recover dirty assets
[BigDog-OH] Gold Drops in New York as Dollar Touches Five-Year High http://www.bloomberg.com/news/2014-12-29/gold-declines-as-dollar-s-strength-curbs-demand-silver-advances.html
[BigDog-OH] Oil Falls to 5-Year Low as Supply Glut Seen Lingering http://www.bloomberg.com/news/2014-12-29/oil-climbs-as-libyan-output-threatened-by-fire-at-storage-tanks.html
BigDog-OH] China will allow trading in forwards and swaps between the yuan and three more currencies in an effort to reduce foreign-exchange risks amid increased volatility in emerging markets. The China Foreign Exchange Trade System will begin such contracts with Malaysia’s ringgit, Russia’s ruble and the New Zealand dollar from today, it said in a statement on its website posted Dec. 26 in Shanghai.
That will extend the yuan’s swaps trading to 11 currencies on the interbank foreign-exchange market. A plunge in Russia’s ruble this month to a record low sparked a selloff in developing nations’ assets, leading to a surge in currency volatility.
The new contracts come as China tries to increase the international use of the yuan, which the world’s second-largest economy promotes as an alternative to the U.S. dollar for global trade and finance. Malaysia and Russia are China’s eighth- and ninth-biggest trading partners, according to data compiled by Bloomberg. The CFETS is an agency under the People’s Bank of China. http://www.bloomberg.com/news/2014-12-29/china-fx-trading-gem-tax-iowa-insurer-takeover-compliance.html