Friday, February 25, 2011

India moves towards direct Yuan convertibility

Thanks again to David for providing what I view as a very significant news article out of the Times of India.

You might recall that I had posted an article dealing with the concentrated efforts by the Chinese authorities  to work towards this very thing just recently- namely, the effort to make the Yuan an international currency. The biggest hindrance to this has been this lack of convertibility. Once this issue is resolved, and it looks as if there is now a serious, concerted effort in this direction that is gaining in popularity, it is going to be yet another nail in the coffin of the US Dollar.

Bank of India becomes first to offer trade settlement in yuan

 
BEIJING: Bank of India has become the first Indian bank to offer trade settlement facility between the rupee and the Chinese RMB from Hong Kong. This follows intense persuasion by the China Banking Regulatory Commission, which is trying to gain acceptance of the RMB as an international currency.


Read more:
 

Saibal Dasgupta, TNN, Feb 24, 2011, 10.07pm IST
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5 comments:

  1. DocJimFebruary 25, 2011 at 2:03 PM

    This is so huge, yet nothing from the mainstream media. I'm starting to think they may not have our best interest.

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  2. AnonymousFebruary 25, 2011 at 2:57 PM

    Might we reach a point, and sooner than later, where once the price of the PM's explode higher that the liquidity to accomodate the sales at the new higher level will need to increase and result in even higher prices, instead of lower, when metals are sold for cash?
    If so, would that be the beginning of a market driven revaluation attempting to find eqalibrium?

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  3. Trader DanFebruary 25, 2011 at 3:55 PM

    Docjim - this is indeed more than significant; it is huge in my opinion. We keep getting more and more reports of this sort of thing where nations are working out arrangements to facilitate trade between themselves and bypassing the Dollar altogehter in the process. It is another straw being piled on the camel's back of declining Dollar demand at the same time the supply is increasing at warp speed.

    Oh yes, about the media - HA - when has the US financial press ever had the best interest of the US public at heart! As long as we buy stocks they are happy as it keeps the money honeys gainfully employed.

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  4. caramelFebruary 25, 2011 at 5:49 PM

    This trend away from the US$ continues to get stronger & stronger it seems.

    Wondering if this further distinguishes the '70's decade to today - whether other arrangements were facilitated by nations away from the US$ at anytime throughout the '70's?

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  5. DocJimFebruary 26, 2011 at 7:35 AM

    Dan,

    Off topic, but wanted to let you know I spoke with several of the miners and put the question of energy as a % of input costs. So far nobody could give me an exact answer. I found that a little strange, but maybe it was just off the script of normal questions for the investor relations crowd. I still have a few others that I was unable to reach last week. I will let you know if I get anything concrete.

    ReplyDelete

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