Payback is a bitch: China and Russia begin to switch to yuan and euro

[tinydancer]

Geeze louise our leaders have been such pompous banty strutting roosters over the Ukraine.

They woke the Bear AND the Dragon.

Was it worth it to support the freaking coup in Kiev?

RUSSIA ANNOUNCES SWITCH FROM DOLLAR PAYMENTS FOR ITS OIL

Many clients of Gazprom Neft, the oil arm of Russian state gas company Gazprom, are ready to switch their payments from U.S. dollars to euros and yuan, CEO Alexander Dyukov said today.

Any switch away from the use of U.S. dollars as a global reserve currency could lead to massive shockwaves in the American economy.

Mr Dyukov added there could be problems borrowing abroad because of western sanctions imposed on Russia after it annexed Crimea from Ukraine in March but said that Gazprom Neft had fulfilled its borrowing plan for 2014.

The announcement came as a businessman facing EU and U.S. sanctions was appointed Russia's business envoy to China. Gennady Timchenko said he expects a flurry of deals in a shift away from the West.

He said: 'You know what Putin said? He introduced me (to Chinese businessmen) by saying now Mr Timchenko is the head of our business council.

'In other words - it is my words here - he is our main man for China. From the point of view of business relations. That was yesterday.'

Pro-Russian militants storm checkpoint and kill 11 soldiers loyal to Kiev in deadliest clash yet in east Ukraine insurgency | Mail Online

 

[tinydancer]

I am so pissed off that my government has supported the coup I'm spitting bullets this morning. I wonder how our trade with China is going to suffer.

In Symbolic Move, Russia And China Announce Deal to Bypass US Dollar

In a symbolic move that could have far-reaching implications, Russia and China made a bold statement that they are ready to stop the domination of the U.S. dollar in international markets.

They announced a deal Tuesday to bypass the dollar and pay each other in domestic currencies.

The move was made by Russia’s second-biggest financial institution, VTB, and the Bank of China and signed in the presence of Chinese President Xi Jinping and Russian President Vladimir Putin, who is on a visit to Shanghai.

In addition, the two nations announced a massive natural gas deal they’ve been pursuing for the last decade that gives Russia a market for its energy imports in China, helping it to break free from the European market it heavily depends on to buy its energy.

“Our countries have done a huge job to reach a new historic landmark,” Putin said Tuesday, pointing out the $100 billion in annual trade that has been achieved between the two countries.

In Symbolic Move, Russia And China Announce Deal to Bypass US Dollar - Atlanta Black Star

 

[waltky]

China wants yuan to dominate global currency...

US Clearing Center Is China's Latest Move to Make Yuan Global Currency
September 23, 2016 - China this week established the first clearing center for the Chinese yuan, or RMB, in the United States. The move is seen by some as a signal China wants to take on the dollar on its home turf.

But there is more than a sense of bravado behind the decision. This is a crucial time for the RMB, which is struggling to stay on course while preparing to enter the coveted currency basket of International Monetary Fund's Special Drawing Rights (SDR) on October 1. In financial terms, there was no reason to establish an RMB clearing center as the U.S. market can easily be serviced through dedicated RMB centers in other parts of the world. "But it sends the signal that China wishes to enter the U.S. financial markets with RMB business to challenge the U.S. dollar on its home turf, so to speak," Jacob Kirkegaard, a senior fellow at the Washington-based Peterson Institute of International Economics told VOA. "As such, this is more a political signal than a financial necessity," he said. "This is because the RMB rate is an intensely political figure and essentially can be taken as a proxy for 'faith in the Chinese economy.' "

No celebrations

Chinese officials have undergone years of toil and entered into more than 20 currency swap agreements to give the RMB a global image. But they are not going to sip wine and declare "gan bei" (bottoms up, in Chinese custom) over the yuan's entry into the IMF's basket for SDR a few days later. Christopher Balding, associate professor at HSBC School of Business Peking University, said China is desperately trying to keep the RMB from crashing by spending $50 billion a month. Beijing is selling dollars out of its reserves to buy up the available yuan in the international market, he said. "If they [Chinese officials] went on national TV and announced that they would let the market fully determine the value of the RMB, I don't think it is a stretch to say that the RMB will drop 15-20 percent in the blink of an eye," Balding told VOA. "China's foreign investment is down 40 percent. When you couple that with the continued amount of money leaving China, that is putting a lot of pressure on the RMB," he said. Beijing is actually de-internationalizing its currency by sucking out the available yuan in the world markets."If they [Chinese currency] are declining at the rate they are now, there will be no RMB available outside China in 18 months," he said.

Battle for stability

China's recent policy to keep the currency’s value roughly stable has been driven by its desire to avoid sharp currency moves in the lead-up to the G-20 summit that took place in China recently, and, now, the forthcoming inclusion of the RMB in the IMF’s SDR basket, according to Eswar Prasad, senior professor at Cornell University and author of an upcoming book, Gaining Currency: The Rise of the Renminbi. "China’s government faces a conundrum that other reserve currency economies have faced in the past - how to promote the currency’s role in global finance without losing control over the currency’s value," Prasad said, adding, "Currency management policies over the last year suggest that the government sees stability in currency markets as a higher priority than promoting the currency’s international role."

An exchange store staff shows a Chinese RMB$100 banknote (L) and a US$100 banknote in Hong Kong​

China's currency moves are not meant to protect or push forward its exports. Chinese exporters are not likely to gain hugely by a slide in RMB value or lose much if it was a little stronger, because many of them face little competition in the price and quality range in which they operate, experts said. "China is most interested in maintaining basic stability of its currency and limiting volatility. Reducing expectations of substantial or sudden depreciation helps reduce capital outflows," said Scot Kennedy, deputy director of the Freeman Chair in China Studies at the Center for Strategic and International Studies. "The recent modest depreciation is not geared to support exports."

US Clearing Center Is China's Latest Move to Make Yuan Global Currency

 

[TheOldSchool]

Wow TD was fucking batshit insane back then

 

[WheelieAddict]

Wow TD was fucking batshit insane back then

And today as well.

 

[TheOldSchool]

Wow TD was fucking batshit insane back then

And today as well.

Whoops I guess I kind of implied she wasn't now

My bad

 

[WheelieAddict]

Wow TD was fucking batshit insane back then

And today as well.

Whoops I guess I kind of implied she wasn't now

My bad

Watch out, she is really pissed at her government. And when she is pissed things happen, because she is a very important and connected person.

 

[tinydancer]

Wow TD was fucking batshit insane back then

And today as well.

Whoops I guess I kind of implied she wasn't now

My bad

Watch out, she is really pissed at her government. And when she is pissed things happen, because she is a very important and connected person.

Harper went down didn't he? And not only did he go down, he went down in flames.

 

[tinydancer]

He flamed out so bad that he had to resign as the leader of the party and thank heavens the son of a bitch resigned his seat as well.

Harper resigns after more than 17 years in politics