Yuan’s global popularity keeps rising

 

Growing acceptance: A bank employee counting 100-yuan notes in Nantong, China’s eastern Jiangsu province. Usage of the currency has jumped in the past three months as international funds boosted holdings of Chinese government bonds. — AFP
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BEIJING: The Chinese yuan is making deeper inroads as a currency of choice for global payments, with international transactions climbing to their highest level ever.
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Payments using the currency jumped to a record 3.2% of market share, according to data from the Society for Worldwide Interbank Financial Telecommunications, breaking through its previous high set in 2015 that came on the back of a currency devaluation in a bid to increase exports.
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Usage has jumped in the past three months as international funds boosted holdings of Chinese government bonds, pushing their share to a fresh record, and amid gas producer Gazprom Neft’s decision to accept yuan rather than dollars for fuelling the Russian airplanes at China’s airports.
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The People’s Bank of China governor Yi Gang urged emerging economies to promote the use of local currencies at a Group-of-20 central banks’ gathering Wednesday, echoing a similar call from Indonesia to reduce reliance on the dollar to manage the risk of Federal Reserve’s stimulus withdrawal.
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The yuan will be one of the biggest beneficiaries as “trade between various Asian countries and China grows, and more of it is denominated in yuan,” said Alvin T. Tan, head of Asia FX strategy at Royal Bank of Canada in Hong Kong.
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Yuan’s growing popularity could also provide additional support for assets denominated in the currency, even as China’s yield premium over the United States narrows due to policy divergence between the two nations. She expects the yuan to be assigned a larger share in the International Monetary Fund’s reevaluation of Special Drawing Rights basket in July.
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The Regional Comprehensive Economic Partnership trade deal that deepens China’s regional foreign trade ties will also prompt member nations to raise yuan asset holdings due to further economic integration with China, she wrote in a note Wednesday.
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The currency retained its fourth place in the past two months, compared with being the 35th most-popular medium of exchange for payments in October 2010 when Swift, which handles cross-border payment messages for more than 11,000 financial institutions in 200 countries, started tracking.
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Despite its rise in the rankings and having upped its market share by orders of magnitude over the last 12 years, the yuan is still dwarfed in popularity by its more established peers, notably the US dollar and the euro.
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The dollar kept its top spot in January, a position it’s held since June, even though its market share fell to about 39.9% from 40.5% in December.
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The euro also lost ground but held onto second place, while the British pound and yen rounded out the top five in third and fifth place, respectively. — Bloomberg

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China - World Leader

  China - World Leader. Posted by Patrick Koh   I do share the views expressed. We saw when both stood up for Venezuela, and possibly Ira...

Who are the Indian Internet TV channel going by the program name of Gravitas & Falun Gong Cult operators?

 *"Gravitas"*

 Recently there were quite a few videos coming out from an Indian Internet TV channel going by the program name of *"Gravitas"*.

This channel is similar to the TV channel *NTD ("New Tan Dynasty") TV* and the *Epoch Times* (newspaper) which are both owned and operated by the *Falun Gong Cult* from their HQ in New York and known far right US/Trump supporters and financiers).

 

*Falun Gong Cult*

 

Gravitas is always posting right wing anti-Chinese propaganda videos.

*Gravitas* is operated by an Internet TV network called World In One Network... *"WION"*. 

It's owned by the *Essel Group* from Mumbai under one Subash Chandra. Sometime last year it got into very serious financial problems and was bailed out in late *November 2019* by the Invesco Group of Atlanta USA which also took a large block of their share. (Prior to this takeover there was almost no anti-chinese rhetoric from them)

The question to ask is "why would a US fund management company mangling more than USD 1 trillion in assets  want to bail out a bankrupt "Mumbai" Internet TV company?... and also take a large block of its shares, especially when *it is not their business as fund managers* to do so and go bailing out bankrupt Indian businesses.

Invesco is a very large Fund management group managed by a team of hard core right wingers ... now can you see why this TV channel is putting out such matters. 

They continue to call the virus *"Wuhan" virus* and refer this pandemic as a "disease from China",  when the name has already been officially known as SARS-CoV-2, and the disease Covid-19. 

The only other persons who still insisted on calling it "Wuhan virus" are those right wing liars   Mike Pompeo and Mike Pence. The Duckbrained President called it a Chinese virus ... they hated China. Their so called human rights attacks on China, firstly using Tibet and the Dalai Lama, then Xinjiang and the Uighurs, then HK are just a pretext to kicking open the doors for their nonsense to go in. ..... don't trust this bunch of frauds and their propaganda.

 

 

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China - World Leader

 

China - World Leader.

Posted by

Patrick Koh

 

I do share the views expressed. We saw when both stood up for Venezuela, and possibly Iran. Heavy weight China/ Russia partnership does move the geopolitical needle and change the balance equation. Never expect war, but Putin did flex some biceps.

China is China.

-  Kanthaswamy Balasubramaniam,Kanthaswamy Balasubramaniam

There are many predictions about China's economic collapse. Why isn't that happening?

Take Evergrande!!!!

Why did so many Economists predict that Evergrande collapse would be huge etc etc????

Because they are stupid??? No

Because they are biased??? Maybe…but they are still reputed Academics who wont just tout propaganda

So Why????

BECAUSE THEY LOOK AT EVERYTHING FROM THE US ANGLE (And the European Angle and the Japanese Angle and the Indian Angle) or the US LENS

In the United States - The Shareholder is GOD

So any Collapse of a Company , leads to a blow in the Markets which causes massive massive massive losses and creates all the financial crises since 1929.

In China - The Investor is GOD

China believes that the Speculator is a Gambler. They restrict major funds from investing too much into the Stock market and ensure that the Common Citizens who invest in the stock market know that they can lose their shirt or win a pile of gold.

Instead their Focus is on the Investor - the ones who paid for the Houses, the ones who bought Bonds etc. They are to the Chinese - the backbone of Economics.

IN the United States - Rule of Law is Cumbersome but Absolute

This means - THE LAW Comes First. So whenever any Company Collapses - you have Chapter 11s filed , Protection of the Company Directors and Shareholders , Allowing the Company to file counter suits etc.

This means the Assets of the Company get wound up for an average of 46 months and by this time shares plummet to Zero.

Thus a Companys failure means failure for all its investors.

In China - The Public is Absolute or the Common Man

China puts everything including Freedom or Human Rights above the Common Man.

So in China when a Collapses - the System will first Force a company to pay back its investors.

The Law never interferes

The Company has to pay back its investors by selling Assets, swapping Assets etc.

This means Assets of a Company can be disposed off in weeks rather than months or years.

And thus Investors almost always get between 55% - 100% of what they invested

IN the US - Value is all about Perception

US doesnt like the word ‘Assets’ or ‘Profits’

They like ‘ Potential’ or ‘Expansion’

This means many Companies in US are almost always heavily bloated with very little Real Assets

So in a sense US is mostly like India. They do nothing until a company folds and then its Chapter 11 and in some cases - FBI investigations or SEC investigations

So when a Company crashes - its Perception or Potential crashes and its Value crashes.

In China - Value is all about ASSETS

China doesnt like words like ‘Potential’ or ‘Closing a Deal’ etc.

They like Hard Core Assets - Land, Contracts, Trade Deals, Gold, Jade, Coal , Gas Pipelines are what they love.

So when a Company crashes - It always has Assets to back it up and these Assets manage to salvage a big chunk of Value

So thats what is helping China ignore Evergrande or even a Real Estate Crisis while if this was happening in US or even India - people would be scrambling for cover.

Yet while Economists are good - they simply dont think like a Chinese or know the Chinese System

My Associate Lawyer in Singapore told me how Westerners focussed on Huge Office Space whereas a CHinese office was a small 15X10 enclosure and yet you had 10 times larger deals floating through the same.

Likewise Most Western Personal Debts are based on paperwork etc. Most Chinese Personal Debts are given based on just the mans face and his Chop (Chop is a personalized Stamp like thing with Unique Chinese characters)

So those who make Predictions on China - Just dont understand how China works

Its why Singapore never makes Predictions on China. They simply report the US Predictions and Laugh because They are Chinese too.

Likewise South Korea understands the Chinese Way as does Taiwan and even HK

Thats why South East Asia really didnt care too much about Evergrande. They just reported what the West said but ignored it.

Thats why South East Asia scrambled in Panic when Lehman Brothers folded. They also know how US works and knew how big a crisis it was.

Just change your glasses and wear a Chinese one - and you will see just how different Chinese Business is compared to the Western models

 

 China - World Leader.

 

 

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