#AceWorldNews – RUSSIA/CHINA – August 10 – The Russian and Chinese central banks have agreed on a draft currency swap agreement, which will allow them to increase trade in domestic currencies and cut the dependence on the US dollar in bilateral payments.
As China’s exporters were hit by the global recession in 2008, the People’s Bank of China began stepping up her intervention programme to prevent appreciation of the Yuan. By April 2011 Chinese state controlled banks had accumulated over one trillion in US treasuries and over 1.5 trillion in other dollar assets. China has indicated she plans to further rebalance her economy towards domestic consumption, and intends to stop buying dollar assets by 2016. (Photo credit: Wikipedia)
“The draft document between the Central Bank of Russia and the People’s Bank of China on national currency swaps has been agreed by the parties,” and is at the stage of formal approval procedures, ITAR-TASS quotes the Russian regulator’s office on Thursday.
The Russian Central Bank is not giving precise details on the size of the currency swaps, nor when it will be launched. It says this will depend on demand.
According to the bank, the agreement will serve as an additional instrument for ensuring international financial stability.
Also, it will offer the possibility to obtain liquidity in critical situations.
“The agreement will stimulate further development of direct trade in yuan and rubles on the domestic foreign exchange markets of Russia and China,” the Russian regulator said.
Currently, over 75 percent of payments in Russia-China trade settlements are made in US dollars, according to Rossiyskaya Gazeta newspaper.
A while ago l predicted the currency changes in the market to a number of my colleagues who then could not see the“Sign of the Times” but l was looking at a number of indicators. These were that the Chinese believe in keeping to customs and are steeped very much in the past ,so much so that they would keep their“Sovereign Currency” the Yuan in tact.
Their decision on many occasions has been to not devalue, as so many other countries have advised.
They have stuck to their guns and the time is coming when this “Third World Currency” will become one that everyone will want to trade!
So to today’ s article in the AFP it deals with changes and how the deals with both London and Singapore will challenge the once “Almighty Dollar“ and how with new free-trade zones opening up ,it could well one day become the “People’s Currency” then where will this leave these oil rich nations.
The demise of the “Petro-Dollar ” could we finally see the end of OPEC and their stranglehold on the per barrel price.
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