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Old 05-14-2019, 06:48 AM   #521
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The contemplation by Asian finance leaders to add the Chinese and Japanese currencies to a regional foreign reserves buffer fund is the latest sign that the trade war is causing countries to slowly move away from dependence on the US dollar.
...
The 10 members of the Association of Southeast Asian Nations plus China, Japan, and South Korea, together known as “Asean+3”, were reported earlier this month to be considering including the yuan and the yen to their Chiang Mai Initiative Multilateralisation (CMIM) scheme, a framework for multicurrency swap arrangements.

The US$240 billion CMIM scheme was established in response to the 1997 Asian financial crisis to serve as a safety net that provides US dollar support to any one of the countries in the event of a liquidity crisis.
...
The Asean members are Brunei, Cambodia, Indonesia, Laos, Malaysia, Myanmar, the Philippines, Singapore, Thailand and Vietnam.

The review of the CMIM scheme to add additional regional currencies into the fund, amid the escalating US-China trade war, underscores not only growing efforts in Asia to bolster intraregional financial linkages, but also the regional countries’ intent to reduce reliance on the US dollar-based financial system.
...
https://www.scmp.com/economy/china-e...llar-dominance
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Old 05-26-2019, 09:45 AM   #522
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WSJ published an overview of things we've been highlighting in this thread for a while now. Gata posted a non-paywall bit of it here:

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Will the U.S. dollar soon lose its status as the world's pre-eminent currency? The consensus is no—it's said that any move away from the dollar would take decades. This view is too complacent.

Developments in foreign-exchange markets during the past 18 months point toward dedollarization. Consider that Chinese "petroyuan" crude-oil futures, launched last year in Shanghai, now sit right behind Brent and West Texas Intermediate in trade volume. The world's central banks bought more gold last year than at any time since President Nixon took the U.S. off the gold standard in 1971. Markets recently learned that China added gold to its reserves for the fifth month in a row. Earlier this year, the U.K., France, and Germany created a new payment-processing system to permit payments to Iran. It will begin quietly with humanitarian aid, then move to other goods and services, potentially competing with the American-influenced Swift system.
...
More: http://gata.org/node/19093
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Old 05-26-2019, 09:59 AM   #523
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Chinese press still sabre rattling over the sale of US Treasuries:
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As American pundits and polls dismiss the idea that China would dump its massive holdings of US Treasury debt as retaliation against US tariffs, a contrarian view is emerging in Beijing that the government may use the securities as a “weapon of last resort."
...
... with Beijing vowing to fight "to the end" and the U.S. preparing to place a 25-percent tariff on a further $300 billion of Chinese imports, China may have "no choice but to sell" its U.S. Treasury holdings, according to some analysts and reports widely distributed on China's social media.

This would devalue U.S. bonds, causing yields to rise, potentially sharply. If China converted the dollar proceeds from its sale back into yuan, it would strengthen the Chinese currency against the U.S. dollar, potentially significantly.

However, one line of thinking is that because the trade war could remove the U.S. as a viable market for Chinese exports, a strengthening yuan against the dollar -- which would make Chinese goods more expensive for American buyers -- may be seen as an acceptable outcome by Chinese policymakers.

"This will happen only when China has no other option. It is a weapon of last resort," said David Chin, the founder of Basis Point Consulting. "If China is not exporting to the U.S. any more, then they do not need to have a weak yuan and strong dollar to encourage Americans to buy." ...
https://www.scmp.com/economy/china-e...war-contrarian
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Old 05-28-2019, 08:40 AM   #524
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Trump is not stupid nor are the Chinese
theres a lot of hot air but both sides will be looking to avoid a slide into tit for tat with both sides losing big time

Selling US debt is a signal rather than a policy and stopping the flow of raw rare earths was always the plan, so China could make and sell the things that require these elements ...

I reckon world recession will be the real cause of pain and the 'trade war' a useful thing to blame.
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Old 05-30-2019, 05:22 PM   #525
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heh

https://www.zerohedge.com/news/2019-...cy-pegged-gold

gotta have a dream ...........
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Old 05-31-2019, 08:46 AM   #526
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Quote :
...
According to the Malaysian PM, the proposed common currency could be used to settle imports and exports, but would not be used for domestic transactions.

“In the Far East, if you want to come together, we should start with a common trading currency, not to be used locally but for the purpose of settling of trade,” he said at the Nikkei Future of Asia conference in Tokyo. ...
So, exactly like SDRs, but backed by gold.
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Old 05-31-2019, 09:01 AM   #527
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Well well... Looks like the USA is taking the threat of INSTEX seriously:
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...
Sigal Mandelker, the Treasury Department’s undersecretary for terrorism and financial intelligence, signaled in a May 7 letter obtained by Bloomberg that Instex, the European vehicle to sustain trade with Tehran, and anyone associated with it could be barred from the U.S. financial system if it goes into effect.
...
A senior official involved in the internal debate that led to the letter said the U.S. decided to issue the threat after concluding that European officials, who had earlier downplayed the significance of Instex in conversations with the Trump administration, were far more serious about it than they had initially let on.
...
https://www.bloomberg.com/news/artic...face-sanctions
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Old 05-31-2019, 10:41 AM   #528
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I cant believe the stupidity of threatening exclusion from SWIFT ..........

once theyve blocked everyone from using SWIFT it gets easier and INSTEX gets a leg up

and the US$ becomes less relevant with every sanction / sanction threat.
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Old 06-11-2019, 10:30 AM   #529
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Quote :
Instex, a European payment system for barter-based trade with Iran designed to circumvent U.S. sanctions, is expected to be ready soon, German Foreign Minister Heiko Maas said on Monday, ahead of talks with Iranian President Hassan Rouhani in Tehran.
...
“This is an instrument of a new kind, so it’s not straightforward to operationalize it,” Maas told reporters, pointing to the complexity of trying to install a totally new payments system.

“But all the formal requirements are in place now, and so I’m assuming we’ll be ready to use it in the foreseeable future.”
...
https://www.reuters.com/article/us-u...-idUSKCN1TB0L0
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