Monday, December 29, 2014

The world will change forever in the Monday, December 29, 2014


The world will change forever in the Monday, December 29, 2014

Analytics

Yuri
December 28, 2014


China and Russia have applied to a US dollar a new crushing blow, according to a publication of editions Zero Hedge.

China launches Monday swap trade a couple of yuan - ruble.

The world has been slow to recognize the new reality in which China is now the de facto sovereign "master" of the IMF described the situation as Zero Hedge two weeks ago in an article "China is ready to help Russia." We have noted that the People's Bank of China proposed the use of a swap line, which was to reduce the role of the US dollar, if China and Russia will need to help each other to overcome the liquidity crisis. (The agreement provides for swap CNY150 billion. In local currency).

In fact, everything happened just this week. Bloomberg reported that "China offers Russia assistance in the form of currency swaps."

But in order to fully protect Russia from disconnection from SWIFT-a world in which the dollar's dominance was needed one extra step. And it was done - it's launch direct trade FX with the participation of Russian and Chinese currencies.

Not surprisingly, that's exactly what was missing was made in overnight trade yuan-ruble pair will start at Monday, December 29, 2014

Posts from Bloomberg:

"China allows future trade swaps between the yuan and more than three currencies in an attempt to reduce currency risks against the backdrop of heightened volatility in the markets of developing countries.

China Foreign Exchange Trade System will start the implementation of such contracts with the Malaysian ringgit, the Russian ruble and the New Zealand dollar since December 29, according to a statement posted on the organization's website. This practice expands swap trade the yuan and 11 other currencies in the interbank foreign exchange market.

New arrangements were announced against the backdrop of China's efforts to promote international use of the renminbi, and the second largest economy in the world promoting it as an alternative to the US dollar in world trade and finance. Malaysia and Russia are the eighth and ninth largest trading partner of China, according to data compiled via Bloomberg.

"It will provide companies with better hedging instruments, and at the same time, make currency trading more efficient," - said Wang Yu, a senior currency strategist at HSBC Holdings Plc in Hong Kong. "China will not stop in the global expansion of the yuan due to the volatility of currencies in emerging markets."

CFETS is an agency under the People's Bank of China.

Thus, although the US is still trumpeting the "destruction" of the Russian economy (even if it means the destruction of the oil shale industry, which knows that it is the only bright spot, the industry provides high-paying jobs in the US economy over the past 5 years), Russia and China still pushed the West to the financial and strategic convergence, until one day, as we have long predicted China and Russia announced a joint currency, which will be supported by the Chinese as "amazing" gold reserves, and the Russian "secret inventory. "

Then all the fun and starts

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