China announces Yuan can now be used for international trade

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switters's picture
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Joined: Jul 19 2008
Posts: 744
China announces Yuan can now be used for international trade

The New, New Money, by Dmitri Orlov

It's official: The government in Beijing has announced that the Yuan can now be used in international trade. Their mouthpiece for this occasion was the Industrial and Commercial Bank of China, a private entity, which made the announcement on their behalf. By the end of this year, it is expected that fully 50% of all transactions with Hong Kong will be denominated in the Yuan. In turn, Hong Kong re-exports 90% of its Chinese imports. Importer #1 is the European Union; importer #2 is the United States. Some of these countries may soon find themselves hard-pressed to earn enough Yuan to continue importing Chinese-made products.

This is only the next small step in Beijing's "policy of small steps." Already the Chinese government has ramped down its purchases of US Treasury paper, forcing the Federal Reserve to step in as the buyer of last resort. The IOU, with which the US has inundated the world, is now becoming the I-owe-me - which is not quite as impressive to those who are considering selling products to the US on credit. Instead of the funny paper, the Chinese government has started to buy up gold on the international market. The Yuan has long been in de facto use in Hong Kong, Sigapore, Kuala Lumpur, and other countries in the region, in preference to the US Dollar. In several countries it is already possible to have Yuan-denominated savings and checking accounts; in Hong Kong alone such accounts are set to exceed US$100 billion by the end of this year.


SamLinder's picture
Status: Diamond Member (Offline)
Joined: Jul 10 2008
Posts: 1499
Re: China announces Yuan can now be used for international ...

I guess the next question is, How do I set up a yuan checking account here in the U.S.?

cat233's picture
Status: Platinum Member (Offline)
Joined: Aug 20 2008
Posts: 575
Re: China announces Yuan can now be used for international ...


Just for you... I think you might need this link...




What kind of account did you have in your mind?

Do you like to open a current account?

A deposit or current account?

Please tell me how you would like to deposit your money.

There's a service charge for the checking account but no charge for the savings.

Our minimum deposit for a savings account is 100 dollars.

Five yuan is the minimum original deposit.

You can open a savings account at any time with an initial deposit of 50 dollars.

Even one yuan is all right.

Here is your pasbook. Please bring it back when you deposit or withdraw money any time you like. Keep it well and inform us whenever you lose it.

I should like to open a current account.

I need a checking account so that I can pay my bill.

We'd like to know how we open a checking-savings account.

I have a checking account here.

I think I'd like a deposit account.

Can I open a current account here?

I want to open a deposit account with you.

I'd like to open a deposit account with you.

Could you tell me the difference between a savings account and a checking account?

Please tell me the procedure for opening a savings account.

Will 100 yuan be enough for a minimum deposit?

I'd like to know whether a 200 yuan deposit will be enough for opening a checking account.






DrKrbyLuv's picture
Status: Diamond Member (Offline)
Joined: Aug 10 2008
Posts: 1995
Re: China announces Yuan can now be used for international ...

The world melts, China grows  (Excerpts)

In the midst of the worst economic crisis since the Great Depression, a new world order is emerging, with its center gravitating towards China. The statistics speak for themselves. The International Monetary Fund (IMF) predicts the world's gross domestic product (GDP) will shrink by an alarming 1.3% this year. Yet, defying this global trend, China expects an annual economic growth rate of 6.5% to 8.5%.

During the first quarter of 2009, the world's leading stock markets combined fell by 4.5%. In contrast, the Shanghai stock exchange index leapt by 38%. In March, car sales in China hit a record 1.1 million, surpassing sales in the US for the third month in a row.

Will the yuan become an international currency?

Without much fanfare, China has started internationalizing the role of its currency. It is in the process of increasing the yuan's role in Hong Kong. Though part of China, Hong Kong has its own currency, the Hong Kong dollar. Since Hong Kong is one of the world's freest financial markets, the projected arrangement will aid internationalization of the yuan.

...Actually, maintaining the customary Chinese discretion, Zhou never mentioned the state of the US dollar in his article, nor did he even imply that the yuan should be included in the super-sovereign currency proposed. Yet it was clear to all that at a crucial moment - with world leaders about to meet in London to devise a way to defuse the most severe fiscal crisis since the Great Depression - that a China which had bided its time, even though it had the third-largest economy on the planet, was now showing its strong hand.

All signs are that Washington will be unable to restore the status quo ante after the present "great recession" has finally given way to recovery. In the coming years, its leaders will have to face reality and concede, however reluctantly, that the economic tectonic plates are shifting - and that it is losing financial power to the thriving regions of the Earth, the foremost of which is China.


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