Posted on 01/19/2024 4:17:56 AM PST by FarCenter
China’s pursuit of internationalizing the yuan, currency swaps, e-currency, cross-border deals and digitalized currency have recently made international news. These efforts are mainly on the rise with Gulf states.
On November 28, 2023, the People’s Bank of China and the Central Bank of the United Arab Emirates renewed their currency swap agreement worth US$4.89 billion for five years. Both banks also signed a memorandum of understanding to enhance collaboration in digital currency development.
Meanwhile, the Dubai Financial Market, in collaboration with Nasdaq Dubai and the Shanghai Stock Exchange, signed a memorandum of understanding covering various areas of digital financial cooperation.
A China-UAE currency swap started in 2012, and in March 2023, the two sides made the first-ever purchase of liquified natural gas in yuan.
On November 20, 2023, the People’s Bank of China and the Saudi Arabian Monetary Authority signed a currency swap of $6.98 billion for three years.
In a separate development, Saudi companies were listed on the Hong Kong Stock Exchange. Saudi Arabia is in active talks with Beijing to price some of its oil sales in Chinese yuan, a move that would dent the US dollar’s dominance in the global petroleum market and mark another shift by the world’s top crude exporter towards Asia.
China also has a currency swap agreement with Qatar. In addition to currency swaps, China has signed cross-border trade settlement arrangements with all six members of the Gulf Cooperation Council and has established yuan clearing centers in different cities. These measures could make the yuan a trade invoicing currency, reduce cumbersome processes and costs and create a pool of liquidity in the yuan.
The growing financial cooperation between China and Gulf Cooperation Council states is not unexpected. It is the result of steady, systematic growth over a decade and confirms deepening bilateral relations.
(Excerpt) Read more at asiatimes.com ...
The Gulf States better being a very, very long spoon...
70% of Gulf oil is not going to Asia, mostly to China. The Gulf States are being forced into taking bad Chinese money and crossing their fingers.
.
With Chinese manufacturing winding down...what exactly will the Gulf States spend their Chinese money on? Fentanyl? I can’t see them buying Chinese cars, or taking trips into China.
The Chinese will be happy to make and sell them anything they want.
The Chinese manufacturing that is decreasing is the ‘assembly’ operations that take imported parts, put them together, and export the assembled product. They are moving away from exporting cheap goods to goods that have a higher value added in China and a wholly Chinese supply chain.
Many, including Armstrong, are forecasting the Chinese Yuan becomes the world’s strongest currency by 2030-32. They are backing it with gold among other moves.
It will not happen overnight, but senile Joe’s drive to confiscate Russia’s $300 billion in Western banks will no doubt accelerate the move. Many Finance Foreign Ministers ( notably India and China) have stated if the US confiscates ( steals) Russia’s sovereign funds they will no longer buy or trade in USD…..no less than five financial greats have also stated if that happens, expect a mass exodus from the USD and all US debt instruments.
Stay tuned for yet another senile Joe backfiring blunder.
Disclaimer: Opinions posted on Free Republic are those of the individual posters and do not necessarily represent the opinion of Free Republic or its management. All materials posted herein are protected by copyright law and the exemption for fair use of copyrighted works.