PBOC Pressures USD Hegemony; Starts Yuan-Denominated Gold & Oil Trading

PBOC Pressures USD Hegemony; Starts Yuan-Denominated Gold & Oil Trading (ZeroHedge, April 25, 2014):

With 23 foreign central banks diversifying from US Dollars to Renminbi and the PBOC actively aiding numerous major financial hubs around the world with bilateral currency swap agreements, it seems yet another nail in the coffin of US dollar hegemony just got hit…

  • *PBOC AIMS TO SET UP GLOBAL PAYMENT SYSTEM FOR YUAN: SEC. NEWS
  • *PBOC TO MAKE GOLD, OIL FUTURES YUAN DENOMINATED: SEC. NEWS

Nothing lasts forever, no matter how much you believe…

Reserve Currency Status

PBOC plans to start yuan-denominated gold and oil futures to help establish a global payment system for the Chinese currency, Guo Jianwei, deputy director of the second monetary policy department of the People’s Bank of China, is cited by Shanghai Securities News as saying.

PBOC will continue to push reform of interest rates, exchange rates and the capital account

The pace of Renminbi use is accelerating…

“In the first quarter, the RMB settlement of trade in goods amounted to 1.0871 trillion, accounting for the proportion of total import and export customs of 18.4% over the same period,” said Guo Jianwei, 18.4% and 11.7%, two figures, hidden vitality, accounting for just three months time improved 6 percentage points, indicating that the use of the renminbi is growing internal demand.

It seems the level of interest in diversifying away from the US Dollar is growing…

At the end of last year, China’s total with 23 foreign central banks or monetary authorities signed bilateral currency swap agreements, the total size of more than 2.5 trillion yuan.

Recently, the central bank after another with Britain and Germany signed a memorandum of agreement RMB clearing and settlement central bank, the European offshore RMB business to accelerate.

It is noteworthy that, in addition to London, Paris, Frankfurt, Luxembourg, Singapore, striving for offshore yuan trading center with only the United States “sitting on the sidelines.”

The goal seems clear…

Renminbi is a new bright spot in the next cross-border RMB business development.” Guo Jianwei, said the central bank will continue to advance the future of interest rates, exchange rate reform, capital projects, and expand the range of RMB payment using to promote the yuan-denominated policies, thereby establishing renminbi The global payment system and so on.

3 thoughts on “PBOC Pressures USD Hegemony; Starts Yuan-Denominated Gold & Oil Trading

  1. My question is this:~

    With flight from USD, and the EURO being basically a total mess, the Chinese and Indian accumulation of Gold place these BRICS members positively in the basket of wealthy Nations with the naturally resourceful Russia.
    All of these are kind of ‘in sync’.
    Never underestimating the Rothschilds, who started investing heavily in China etc about ten years ago, and who effectively own UK. Is it possible the old, crusty British Pound, in spite of its Gov based expenditure insolvency, might be used as a currency LINK base between these new centres of trade?

  2. The advent of electronic currencies are making the need for any world reserve currency obsolete. Why these fools insist it will be the Yuan or whatever are not paying attention to what is happening in over half the world.
    Since Hugo Chavez introduced the Sucre for the South American Trade alliance in Summer of 2010, the game has been changed. China and Russia saw the success of their system, and quickly adopted it for themselves in November of 2010. Electronic currencies allowed member nations to trade with each other using their own currencies, leaving conversion to the dollar unnecessary. Russia and China made their own agreement to trade with each other using their own currencies leaving the dollar out. They went on to recruit much of the world. It includes, but is not limited to India, Japan, Much of South America and emerging African nations, Turkey, Iran, New Zealand, Australia…..and others have all dumped the dollar.
    The US is sitting on piles of paper money nobody wants, and the folks using the dollar continue to fall. The US has made itself despised around the world, they have only themselves to thank.

  3. Talk about a kangaroo court! The G7 has voted for more sanctions on Russia, regardless the sanctions to this point are causing more money to flood into Russia than ever before. All Russians living abroad are moving their money home thanks to these fool sanctions, and they are very rich people. Meanwhile, money continues to leave the US in droves………
    The so-called president of the Ukraine is a US puppet, and the other nations involved here ought to be ashamed of themselves. Germany especially, as they have told the US to stay OUT of the Ukraine. I guess they all play two ends against the middle…..Germany’s debt is now over 200% of GDP……..and the other nations are worse off.
    http://www.reuters.com/article/2014/04/26/us-ukraine-crisis-idUSBREA3O16720140426

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