Beijing, Seoul agree to direct trade in national currencies

Voice of Russia ^ | 4 July 14 | Staff

[SkyPilot]

_{China designated a clearing bank in Seoul for yuan transactions in South Korea on Friday, coinciding with a visit by President Xi Jinping, as Beijing promotes greater use of its currency overseas, AFP reports. Read more: http://voiceofrussia.com/news/2014_07_04/Beijing-Seoul-agree-to-direct-trade-in-national-currencies-4477/}

China's central bank has authorised the Bank of Communications, the country's fifth largest lender, to undertake yuan clearing business in the South Korean capital, the People's Bank of China (PBoC) said in a statement.

The announcement came as Chinese President Xi Jinping wrapped up a state visit to South Korea on Friday. China is seeking to make the yuan - also known as the renminbi - used more internationally in keeping with the country's status as the world's second biggest economy behind the United States. Read more: http://voiceofrussia.com/news/2014_07_04/Beijing-Seoul-agree-to-direct-trade-in-national-currencies-4477/

[grania]

I just finished reading CRISIS ECONOMICS (written in 2010 by Roubini/Rihm). Because it was written a few years ago and a lot of what was hypothesized is happening the authors' conclusions seem valid. So, I follow what you're saying.

I have one question. When you say "the dollar is dead" do you mean that it's dead as the only vehicle for global financial transactions? That will cause higher interest rates and inflation. But won't the dollar still be the medium of exchange in the US? Can't I safeguard against the financial future if I don't have debt I can't pay off and I don't need to purchase anything except the day-to-day necessities?

It's incomprehensible how the dollar has been destroyed by both GWB and Obama. Longterm, letting the recession play out and let the "too big to fail" entities fail would've caused far less damage.

Correct me where I'm wrong, please.