Most if not all the European Countries have asked for the Problems for acting in concert against Russia.
The
US wants control the World is open secret. And Russia, China, North
Korea threaten and impede its' wild ambition. The US and UK which are of
the Same Stock want to regain its' supremacist and imperialism.
Together with many European Countries and their Stooges, the
lmperialists form alliances such as NATO and other pseudo World
Organizations to upset Russia, China, North Korea and whoever who
refuses to work for them.
Fortunately, China has progress far beyond the Expectation and Russia is well-run with Putin doing a good job.
With
the Russia Ukraine War, it now provides the World with a better
understanding of the political and ideological play in the World. In
many ways, it is a blessing for all to have a clear picture of the
Characters of the Humankind and to move forward in the Better Direction.
Cheers
Anonymous
9 comments:
Ever wonder why Chinese President Xi Jinping has never spoken to Ukraine crown President Zelensky ?
That clown has cost Ukraine to lose so many lives and hundreds of billions of dollars that would bankrupt Ukraine for decades to come.
This is the price for having a clown in charge. The Ukrainians voted him, a clown, to be their president and are paying dearly for it.
https://www.facebook.com/100005402912332/posts/1851382611718485/
But not diversifying into the CNY as much as you may think. Only a quarter. This is not a surprise to yours truly even if it may surprise those who think the sanctions and the pricing of oil contracts in CNY presaged the ending of the US$ dominance.
If you think FX reserves managers are nervous of getting caught in future US sanctions, then ask yourself a question - will these FX reserves managers any less nervous if they diversify from US$ to CNY? The answer is no - if they are nervous abt the US, they are more nervous abt authoritarian states. Hence the beneficiary of US$ diversification are currencies such as A$, C$, SwKroner and our own S$. The erosion of the US$ as a trade currency is natural as the US becomes a smaller share of the global economy but erosion as a reserve currency is more than just a currency for trade settlement. Ease of entry and exit and deep capital markets are critical and explains the reason US$ reserves are more than its share of trade settlement.
The confidence in the US$ has taken a big hit with the rash unilateral sanction and freezing of Russian assets. This alone would cause a dent in the use of the dollar.
China is a major consumer of oil and gas and many raw material. Russia is a big producer and seller of the same. When they moved away from the use of the dollar, the role of the dollar would gradually diminish. This is just the beginning of the slide. India and many countries that have fallen on the wrong side of the American hegemony would do the same.
The US$ would no longer be the only international currency for trade as before and can only decline.
As a major buyer, and with so many sellers, the Saudis would have no choice but to accept the Yuan if they want to sell to China. This is simply business.
Saudi Arabia’s oil-for-yuan bid is no threat to America’s dollar
If Saudi Arabia doesn’t want a foreign sovereign to control its overseas assets, switching more of its trading into yuan is about the worst way to go about it.
China’s closed capital account means that just switching in and out of renminbi requires permission from the government. Add to that the sweeping asset forfeiture rules incorporated into Beijing’s anti-sanctions law introduced last year, and you’d be naive to think that China was any more secure a place for Riyadh to store its wealth in the long term.
In times of peace, it’s easy to forget that whenever you invest or sell a product overseas, you’re dependent on the goodwill of a foreign government to ensure you get paid. Washington has undoubtedly taken more advantage of the dollar’s status in recent years to achieve its foreign policy goals.
Those issues are still far from outweighing the convenience of using the world’s most liquid currency market, backed up by its largest stock of sovereign debt and a system grounded in the rule of law. The yuan is the global reserve currency “of the future"—and it always will be.
Saudi switch to yuan seen as symbolic, not true threat to dollar
The world’s largest crude exporter, which has been in talks with China over yuan-priced contracts for six years, has sped up the negotiations, the Wall Street Journal reported Tuesday. The offshore yuan erased earlier losses after the report, yet investors from Nordea Investment Management to Generali Insurance Asset Management said it changes little for the dollar’s status as the world’s reserve currency.
“I don’t know if it is really real,” said Guillaume Tresca, a senior emerging-market strategist at Generali in Paris. “It happens at a moment when the geopolitical order is moving. The dollar has long been the default currency for pricing energy contracts around the world, elevating the importance of the greenback and bolstering Washington’s geopolitical influence. Yet with US and allied sanctions on Russia restricting payments in dollars and cutting that nation off from half of its foreign reserves, other nations are reconsidering their relationships with the currency.
Peg factor
The riyal is pegged to the dollar, so any potential weakness in the US. currency would ricochet back to the kingdom. The peg has shielded the nation from price volatility and allowed its central bank to accumulate reserves. Some investors are skeptical the country will pivot away from that tool as a result.
Still, China has made the internationalization of the yuan a top priority. And countries including Russia, India and Saudi Arabia have sought to include non-dollar payments in their financial systems to reduce their dependence on the US. This year’s sanctions on Russia, and the potential economic devastation stemming from its isolation, have brought a new sense of urgency among those countries, according to some strategists.
“It is possible that those that trade with Russia are looking for some contingency plans should the sanctions extend to all payments, especially as India or Saudi Arabia won’t have the same level of coordination with the US. that the European Union or the UK would have,” said Kaan Nazli, a money manager at Neuberger Berman in The Hague, Netherlands.
Limited impact on dollar
Most investors expect such attempts to abandon the dollar will be minor. Over time, however, they could lead to an alternative financial system that captures a limited market share, while still leaving the dollar as the world’s dominant currency.
“Several years down the road, we might see two parallel financial systems globally, but this move by Saudi Arabia alone is not the watershed moment to get there,” said Matthew Weller, global head of research at Forex.com. “This is not the game changer.”
Only believers of diehard angmo tua kee would think the US$ is safer bet after all the bulldozing to rob others of their assets. China may have laws to protect themselves but never would they abuse it to destroy the trust in the Yuan.
Keep believing in the Americans at your own peril. How many fools still putting their money in American and western banks?
The Anglo-Saxon Americans are in denial . . .
Post a Comment