New currency deal: Euro/CNY

Discussion in 'Currencies' started by mmm....shiney!, Oct 10, 2013.

  1. mmm....shiney!

    mmm....shiney! Administrator Staff Member Silver Stacker

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    Another deal designed to remove the need to swap local currency into USD before conducting trade has been signed between the Eurozone and China. This is the largest of the currency swaps deals the Chinese have signed.

    http://usa.chinadaily.com.cn/business/2013-10/11/content_17022182.htm

    Note that this has had nil impact on the price of the USD.

    I think it's because the markets are now so far removed from reality that the news of an impending last minute (it's actually gone past the last minute - what would you call a deal that's struck after the time period for striking the deal has closed??? :/ ) deal between republicans and democrats has brought some relief into the minds of those that actually look to our politicians to make rational decisions in the best interest of the population. And so as the USD gathers strength another nail in the USD status as the world's reserve currency is hammered in to the coffin.

    But you wouldn't know it looking at the price of gold. :|
     
  2. trew

    trew Active Member Silver Stacker

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    The only market that matters for reserve currency status is oil

    China is already buying oil with Yuan from some countries

    In a bizarre twist, if the US achieves energy independence with new gas and oil supplies due to fracking etc,
    they won't buy much oil from the world and China will soon become the biggest oil importer

    The more oil China buys, the more likely they are to pay for it with Yuan rather than dollars
    The Yuan will become the primary oil currency and more easily become the world reserve currency
     
  3. Big A.D.

    Big A.D. Well-Known Member Silver Stacker

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    China is increasing its use of renewable energy at a faster rate than the U.S. is and on track to achieve energy independence before the U.S. does through a combination of renewable and nuclear energy.

    They'll still be buying a lot of oil for quite a while, but it won't be a case of China simply taking over where the U.S. leaves off.
     
  4. Silver Pauper

    Silver Pauper Member

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    Can you please provide a citation for this statement...Thanks!
     
  5. Pirocco

    Pirocco Well-Known Member

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    Why would this have any effect on us dollar anyway?
    us dollar / euro / pound / yuan / etc, their central banks and government/planners just work together against the same 'kind' of people: the speculator that tries to evade the theft (ex tax) along alternatives (other currency / country / etc).
    If there will be any world spanning currency (alike dollars reserve status) it will be a new currency that is some combination of dollar / euro / pound / yuan / etc.
    Expecting currencies / governments / planners to compete with eachother? Well, history teached them to NOT do that, and instead work together since it makes their theft so much easier. Imagine a Zimbabwe that would have been alone in the world, or on an isle without any traffic in/out, people thus having no other option than undergoing the theft. So, this 'currency deal' is just part of an 'all currency deal'. Which country did NOT buy more dollars since 2008 in order to support the dollar? None. How many currencies weren't involved in swaps? None. We saw currency swaps between all central banks, not any exception.
     

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