Unlikely to have been mentioned on your local T.V last week, the “real big deal” had little to do with the “circus in Washington” as, quietly behind the scenes The European Central Bank (ECB) and The Peoples Bank Of China (PBC) signed China’s second largest “currency swap agreement” for a wopping 350 billion Chinese Yuan.
In an unpresedented move The European Central Bank said: “The swap arrangement has been established in the context of rapidly growing bilateral trade and investment between the euro area and China, as well as the need to ensure the stability of financial markets.”
In doing so, the parties involved avoid swings in exchange rates. They can also be considerably less reliant on the U.S Dollar for bilateral trade and business deals.
China’s central bank has now signed currency swap deals amounting to some 2.2 trillion yuan with 22 countries and regions, with its continued efforts to internationalize the Yuan and rival the U.S Dollar as the world’s reserve currency.
What do “I” think this deal suggests with respect to the long-term future sustainability of USD, now with Janet Yellen a “shoe in” for continued money printing? Continued money printing???
What do “you think” I think?
Wow. Now EU Zone looking for options moving forward.
This is all preplanned and well planned to make America irrelevant. Knowing China and Chinese it is no surprise. This is the MOST important news. Good Thinking -out of the ‘can’. I like.
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I’m glad we see eye to eye as I feel “America’s relevancy” grows weaker by the day, after “already losing” considerable global credibility.
My eye’s have been on China ( I’m a huge fan ) for years, as the balance of power shifted some time ago. I think most people in the West are just unable to accept it.
Looks like I’m gonna have to add another set of numbers I don’t trust to my reading list.
He he he…..Andy.
What part of “these numbers” don’t you trust? Or do you just mean “during these crazy times” the data we get in general?
The regularity in which international money boffs have a pop at Japanese figures makes me go “mmmmm”. They tend to be unscripted side swipes often glossed quickly over. Interesting none the less. I may be over categorising and China’s figures may very we’ll rock solid – for them to be players they have to be.
The rules are being rewritten!!!
I too take “many countries numbers” with a grain of salt these days.
In this instance with a “formal deal” announced / reported on directly from / with The ECB I don’t really care so much about ” the numbers”.
It’s not even what it “suggests as to China’s interests” but moreso – the continued concern (globally) as to the current monetary policy in the U.S.
Mexico, Brasil, now the EU Zone take your pick – these are big BIG players on the global stage, all sharing the same concerns, and now more aggressively moving “away from trade in U.S dollars”.
The global reserve currency has changed hands many MANY times before ( please google it ) so in that sense – it’s no mystery to me.
U.S monetary policy is currently killing it’s own currency, with the Central Bank / Fed’s eyes 100% completely wide open.
Home work in my bag by the looks if things.
Feel free to list any other required reading. I’m in.
No matter how ridiculous the US is currently making itself look on the worldstage, I would take them over China anyday.
I am NOT a fan of China, and will never trust them.
I have been saying this for the past 20+ years – watch out for the Chinese ( and not in a good way)
Each to their own right $tuart?
And so the world goes round.