What does that mean?
It means you can settle an international transaction in CNY with Deutsche Bank. Imagine a European lender financing a project in Nigeria that involves purchasing a lot of infrastructure from China.
Deutsche Bank becomes first foreign yuan clearing bank in Europe
11–20 of 496 posts
Re: Deutsche Bank becomes first foreign yuan clearing bank in Europe
#12Re: Deutsche Bank becomes first foreign yuan clearing bank in Europe
#13What does that mean?
It means that nations are beginning to abandon (or at least hedge against) the dollar as the world's currency, due to the host nation's instability and global political situation. "Great Again", indeed.
Re: Deutsche Bank becomes first foreign yuan clearing bank in Europe
#14"but at what cost" ?
Re: Deutsche Bank becomes first foreign yuan clearing bank in Europe
#15Earlier quoted context omitted.
Can you elaborate a little? I suspect it is a well known concept, but its the first time I heard of it in this context.
Rising power challenges the fading imperial hegemony. In this case, CNY displacing USD.
CNY displacing USD would entail allowing people outside China to buy really significant quantities of CNY-denominated financial products. This would entail CNY/USD changing so CNY is more expensive, because the default currency for financial products currently existing is USD. Which would slap a corresponding huge price increase with 0 increase in quality to all Chinese export. Which would murder Chinese manufacturing export. Which would entail laying off some grand proportion of an industry that employs 5% of the _human_ race. Which is why they're not gonna do that.
Re: Deutsche Bank becomes first foreign yuan clearing bank in Europe
#16What does that mean?
Layman here, from what I understand this is a major news : it means China is allowing a foreign corporation (european commercial bank) to offer Yuan currency services to clients. Given how tight of a currency control policy the CCP has, it’s quite surprising that they would let a foreign based company into their currency dealings.
Re: Deutsche Bank becomes first foreign yuan clearing bank in Europe
#17The end of the Petro Dollar?
Soviet-China-Iran - Petro Yuan?
/edit for the pedantic. Russian Federation.
Re: Deutsche Bank becomes first foreign yuan clearing bank in Europe
#18Re: Deutsche Bank becomes first foreign yuan clearing bank in Europe
#19Is it a yuan or is it a Renminbi?
Re: Deutsche Bank becomes first foreign yuan clearing bank in Europe
#20Deutsche banks slogan should be "If you need to do something shady call Deutsche".
At some point china will loose the ability to keep its global currency (Yuan, should be inflating) decoupled from the domestic one (Renminbi is deflating). They have been keeping long running issues in Banking, and Relestate at bay but a global recession (and were on the cusp it seems) is going to be brutal to china.
I suspect that if (when?) that hits this will turn into another Deutsche scandal.