ECON Bank of India Drops U.S. Dollar, now trades with China using Yuan

awakeaware

awakeaware

Inactive
Well the writing is on the walls.

The 2nd largest growing country is now trading with the 1st largest growing country using Chinese Yuan for the currency.

The U.S. dollar has been officially dropped as a trading currency between them.

This is not good for the U.S. dollar and I expect more countries will be taking the Yuan on as an international currency as the dollar inflates.

I think we are closer to the SHTF moment of the dollar being dropped by all the countries and we go hyper.

http://sherriequestioningall.blogspot.com/2011/02/now-shtf-bank-of-india-drops-dollar-in.html




This has got to have the U.S. government in an absolute tizzy and beside themselves! The U.S. went into Iraq for less than this (daring to sell oil in Euros) and dropping the dollar.

India is now trading with China using the Chinese Yuan and has dropped the U.S. dollar completely!

This is huge the two largest growing economies are now trading between each other without using the dollar! India and China feel the Yuan is more stable than the U.S. dollar now, as it is not being inflated.

Portion:

Indian buyers are at present making payments in US dollars, and they often have to convert rupee into the US currency for the purpose. The US dollars will no more be the intermediary currency as the BOI is offering direct settlement between the rupee and the Chinese money.

Chinese exporters want their money in the local currency, which is regarded as more stable compared to the US dollar. They are also in a position to have their way because Indian buyers do not have an alternative source of low-cost goods, sources said.


Now the Chinese Yuan is the currency of trade between Russia and China (they dropped the dollar last year in trade between the two), besides India and China. The Asian countries had begun trading between each other in the Yuan last year, but huge countries had held back, besides Russia.
Click to expand...
 
blackguard

blackguard

Veteran Member
They won't be the last one to do this

This is a major indicator of a shift in world trade. What to watch for now is who will be the next one to do the same. Things are getting worse.
 
undead

undead

Veteran Member
result that the left-wing cockroaches like Paul Krugman don't want you to know about?.....


huge inflationary pressures on the American consumer


:kk1:
 
N

NC Susan

Deceased
HUGE implications!

The dollar value is based on confidence. and I suppose the world has just shown us what they think of our President Obama.
HYPERInflation.........
 
rafter

rafter

Since 1999
This should do wonders for the oil prices...food prices...everything.

Mr Bernanke...you have done such a wonderful job for our country...:kk1:
 
N

NC Susan

Deceased
http://www.thetrumpet.com/?q=7874.0.132.0
The End of the Dollar


From the March 2011 Trumpet Print Edition »


In January, Chinese President Hu Jintao was wined and dined with a lavish state banquet at the White House and other official ceremonies usually reserved for America’s closest friends and allies. Why? One must be very polite when entertaining your banker—even if you don’t like him and he doesn’t like you.
Yet there is another more ominous but closely related reason.
For years, China has warned America that its support for the dollar was not unconditional. The warnings fell on deaf ears. Confident that China was virtually forced to lend money to America, Washington embraced a borrow-and-spend policy that would have destroyed any other currency.
Then last year, when it became clear that America could not borrow enough money to pay the bills—it crossed the Rubicon, declaring that the laws of paper money no longer applied to the mighty dollar: America would just print whatever money it needed to pay the bills. Federal Reserve Chairman Benjamin Bernanke declared he would start by conjuring $900 billion—75 percent of America’s borrowing needs—out of thin air.



The world was shocked that America would so abuse the world’s reserve currency. France, Germany, Russia and China were outraged. But Americans wagered that the world is too caught in the dollar trap to do anything about it.
So far, this strategy has worked out pretty well for America. With several European countries falling apart, the dollar has firmed up, and safe-haven money has continued to flow into America. But signs are, that is beginning to change.



Europe’s Sugar Daddy
As the Washington Post wrote, “trange things are happening in Europe—none stranger than the emergence of China as the Continent’s sugar daddy” (January 16).
Wait—wasn’t China America’s “sugar daddy”? Well, just follow the yen. In July 2009, China held $939 billion worth of U.S. treasury debt. More than a year later China’s holdings have fallen to $895 billion. This is big news—and surely isn’t lost on Washington. For more than a year, America’s most important creditor has stopped lending new money to America. Instead, China is investing its money, and its confidence, in Europe.



Today, Europe matters more to China than any place in the world. With 400 million First World consumers and the world’s largest economy, the European Union is by far China’s biggest export market.
It is a reciprocal relationship, too. China now directly holds over $900 billion worth of eurozone national debt. In Greece, China is investing billions more as it attempts to build the Mediterranean port city of Piraeus into the “Rotterdam of the south,” and create a modern-day silk road linking Chinese factories with consumers across Europe and North Africa.
Most importantly, China has thrown its weight behind the euro.
In a recent trip to Europe, Vice Premier Li Keqiang did nothing less than transform Europe’s economic picture. Just as commentators were predicting the collapse of the eurozone, Li—a favorite to become China’s next prime minister—appeared to throw China’s $2.85 trillion worth of foreign exchange reserves into Europe’s breach, promising to be a committed and responsible long-term investor in Europe. icbc bank, China’s largest lender, quickly followed suit, announcing its intention to move full force into the eurozone. It will open its first-ever branches in France, Spain, Italy, Belgium and the Netherlands. It has already opened offices in Frankfurt and Luxembourg.
Li’s support is already paying dividends in Europe. With interest rates coming down from recent highs and successful debt auctions, Spain and Portugal got a welcome taste of what several billion euros’ worth of Chinese “sugar” can do.

Of course, it doesn’t come free. Li publicized China’s desire that the EU relax restrictions on high-tech exports to China and develop trade relations. In addition, China wants access to Europe’s defense companies.
Europe seems all too willing to do business. The EU’s Foreign Minister Catherine Ashton called for abolishing Europe’s arms embargo with China. Reportedly, American officials, who have to deal with a rapidly growing Chinese military presence in the Pacific, are furious.
What Will Replace the Dollar?
It was what Hu Jintao told the Wall Street Journal just prior to his arrival in Washington, however, that should have all Americans preparing for one massive sugar crash. He said the dollar should no longer be the world’s reserve currency. It is a “product of the past,” he said. It is time for a more fair and balanced system.



What does China think should replace the dollar? Hu himself said it wouldn’t be the yuan. What does that leave? Follow the sugar.
“The euro will overcome the region’s deficit crisis,” assured Song Zhe, China’s ambassador to Europe, back in December. The cementing of the euro’s status will “promote the building of a diversified global currency system,” he said.
Remember: When anyone talks about “diversifying” the global currency system, by definition it means ditching the current system—which is the dollar.



And China isn’t alone in shifting support to the eurozone. Japan has also announced that it will step up its efforts to back Europe by purchasing eurozone debt. According to Reuters, Japan will purchase 20 percent of soon-to-be-issued Eurobonds. The Eurobonds would be jointly issued and backed by all members of the eurozone—creating a new debt market that will directly compete with U.S. treasuries. Where will Japan get the money? As America’s second most important lender, it has a whole stack of treasuries it would probably love to “diversify” out of.
If the world wants out of the U.S. dollar, there is only one viable paper alternative: Europe.
According to Li Daokui, an academic member of the Chinese central bank’s monetary policy committee, Americans only have months to prepare—while Europe works to get its act together. “For now, market attention is still on Europe and for the coming 6 to 12 months, it will not shift to the United States,” said Li on December 8. “But we should be clear in our minds that the fiscal situation in the United States is much worse than in Europe. In one or two years, when the European debt situation stabilizes, attention of financial markets will definitely shift to the United States. At that time, U.S. treasury bonds and the dollar will experience considerable declines.”



Strange things are happening in Europe. Now you know why. The international monetary system set up at Bretton Woods in 1944 is on the verge of breaking down, and the dollar will soon be fighting for its survival as the world’s reserve currency.
 
HuntingWolf

HuntingWolf

Membership Revoked
Did anyone actually read the article?

No where did it say that the Bank was dropping the US Dollar. Their just going to use Chinese currency when trading with China, instead of converting them into dollars, a wait of three days.

:popcorn1:
 
China Connection

China Connection

TB Fanatic
Ah, HuntingWolf this has got it fixed then.

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B

baygoldbug

Inactive
HuntingWolf said:
Did anyone actually read the article?
No where did it say that the Bank was dropping the US Dollar. Their just going to use Chinese currency when trading with China, instead of converting them into dollars, a wait of three days.
Click to expand...

Hey Lycan,

I've got news for you. That IS dropping the US dollar (as the international unit of exchange); At least between these two countries.

When the US dollar is dropped as the international unit of exchange for oil, then we are REALLY in trouble.

- BGB
..... and I have a great respect for lycans.

.
 
HuntingWolf

HuntingWolf

Membership Revoked
baygoldbug said:
Hey Lycan,

I've got news for you. That IS dropping the US dollar (as the international unit of exchange); At least between these two countries.

When the US dollar is dropped as the international unit of exchange for oil, then we are REALLY in trouble.

- BGB
..... and I have a great respect for lycans.

.
Click to expand...

Read it again. It is ONE bank in India doing this, not every bank in India.

So far only Iran has threaten to drop the dollar. There is still nothing to replace it yet.

:popcorn1:
 
I

imaginative

keep your eye on the ball
This is how it starts. When BOI's balance sheet becomes stronger by not holding depreciating USD's then other banks are forced to follow suit


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.

"We are the first Indian bank to offer real-time settlement facility in RMB to Indian exporters and importers. It will be save a lot of time because settlement in US dollars usually takes three working days," Arun Kumar Arora, BoI's chief executive in Hong Kong, said during a recent visit to meeting regulators in Beijing.

Indian buyers are at present making payments in US dollars, and they often have to convert rupee into the US currency for the purpose. The US dollars will no more be the intermediary currency as the BOI is offering direct settlement between the rupee and the Chinese money.

Chinese exporters want their money in the local currency, which is regarded as more stable compared to the US dollar. They are also in a position to have their way because Indian buyers do not have an alternative source of low-cost goods, sources said.

The process has been facilitated by a recent memorandum of understanding signed between the Reserve Bank of India and the CBRC to enhance banking relationship between the two giant neighbors.

BoI has opened a RMB with the Bank of China, which will provide real time settlement with buyers and sellers across all provinces of China. The move is part of a campaign by the Hong Kong Monetary Authority, which has persuaded 100 foreign banks to enter into arrangements with Chinese banks for trade settlement in RMB.

"We will sell RMB against the US dollar, and companies can buy as much as they want provided they have the right papers. For individuals, the limit of 20,000 RMB a day," Arora said. He expects settlements for an amount ranging between 200 million and 300 million in the first year.

Hong Kong is the only offshore market for the Chinese currency. The past year saw $400 billion of Chinese yuan being traded in Hong Kong against other currencies.

BoI is also awaiting permission from Chinese regulators to establish a branch in Beijing, where it has been running a representative office for the past four years. It has recently signed an MoU with the CBRC on converting the representative office into a branch. The bank has been running a branch in the boom city of Shenzhen for the past four years. The Shenzhen branch will also be involved in providing additional support for the trade settlement business.

http://timesofindia.indiatimes.com/...in-yuan/articleshow/7565143.cms#ixzz1F20kNI57
 
awakeaware

awakeaware

Inactive
HuntingWolf said:
Did anyone actually read the article?

No where did it say that the Bank was dropping the US Dollar. Their just going to use Chinese currency when trading with China, instead of converting them into dollars, a wait of three days.

:popcorn1:
Click to expand...

They will be using the Yuan for trade with china - they will still use the dollars at this point in trade with other countries.


Indian buyers are at present making payments in US dollars, and they often have to convert rupee into the US currency for the purpose. The US dollars will no more be the intermediary currency as the BOI is offering direct settlement between the rupee and the Chinese money.
Click to expand...

How many other countries will follow suit and start trading with China in the Yuan too? Until the Yuan is then in all the countries and is the international currency for trade. It makes sense. I would expect even Australia will come out at some point and say they are using Yuan in trade with China. Once that network is set up, then the countries can trade around the world using the Yuan, because the countries are all ready accepting the Yuan.

China is getting their foot in the door with the big growing economies. U.S. is not a growing economy anymore, it is the dying economy of the world.
 
Dex

Dex

Constitutional Patriot
Oil is heading that way in other countries. Iran has it's own bourse. The trend is obvious. The US economic system is being dismantled and Americans will be left holding the bag. We deserve it because we continue to vote for 2 party crooks instead of voting the issues and kicking the bums out. There is no hope for America until we drop the two party dog and pony show and stop believing everything that the TeeVee tells them...I don't see that happening so we are doomed and largely responsible for that fact.

So go back and sit on your Canadian made couch and eat your Mexican grown food while you watch your Chinese made TV wearing your Indian made robe and slippers. Think about it while you drive to work in your foreign car to go work for your company that might very well be owned by someone from another country paying you in worthless FRNs that you willing give over to the crooks in DC via the IRS after you pay your mortgage to the international banksters.

Not a pretty picture, most people reading this need only look in the mirror to see somebody like that, even my self in some small cases.
 
almost ready

almost ready

Inactive
The BOI is offering Indian companies ALL the yuan they want.

" The move is part of a campaign by the Hong Kong Monetary Authority, which has persuaded 100 foreign banks to enter into arrangements with Chinese banks for trade settlement in RMB.

"We will sell RMB against the US dollar, and companies can buy as much as they want provided they have the right papers. For individuals, the limit is 20,000 RMB a day," Arora said. "

http://timesofindia.indiatimes.com/...er-Re-yuan-settlement/articleshow/7566540.cms
 
China Connection

China Connection

TB Fanatic
Which one etc?


Look no one is really dropping the dollar but they are trading happily in whatever currency is open for trade. Before nearly all international trade was done in dollars. Those days are gone.


What does it mean? Most likely hyperinflation before long as everyone scrambles to get out of holding dollar reserves. Meaning dollars will become hot potatoes. No one wants tohold something that is devaluing by the day.


If people from different countries get burnt with their dollar holdings then they will never again wish to trade with the us in what remains of their lives.




.
 
D

Dozdoats

On TB every waking moment
IF you're smart, you won't be among the last ones left holding the Old Maid- I mean, the FRN$- either.

dd
 
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