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Deutsche Bank becomes first foreign yuan clearing bank in Europe

tradersunion.com

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Re: Deutsche Bank becomes first foreign yuan clearing bank in Europe

#81

Post by cyanydeez »

pizzathyme wrote: post #22

The US wields incredible negotiating power and hegemony because the dollar is the world’s reserve currency. Like the British pound and the Dutch guilder before it, if that loses reserve currency status it will be harder to borrow on favorable terms, which would affect the entire US economy. This is a big step in that perhaps starting to happen over the next few decades.

The current admin has destroyed much of the government backing. Its to he seen if the global business fail to uphold its value.

Re: Deutsche Bank becomes first foreign yuan clearing bank in Europe

#82

Post by Zigurd »

pizzathyme wrote: post #22

The US wields incredible negotiating power and hegemony because the dollar is the world’s reserve currency. Like the British pound and the Dutch guilder before it, if that loses reserve currency status it will be harder to borrow on favorable terms, which would affect the entire US economy. This is a big step in that perhaps starting to happen over the next few decades.

As other people on this thread will point out the Yuan is not close to replacing the dollar, nor is any other aspect of the Chinese financial system highly competitive, even with the staggering rise of corruption in the US.

But this is yet another indicator of the loss of soft power, which is much farther gone than, I'd say, 90% of Americans realize.

The supposedly smart people in the tech industry should be alarmed by the loss of soft power. A lot of tech revenue comes from overseas, but if US technology is seen to be the tool of an unreliable, belligerent, corrupt, authoritarian government, that revenue will evaporate, and it will happen faster than, for example, fundamental international finance changes. And yet these supposedly smart people have lined up behind our government.

Re: Deutsche Bank becomes first foreign yuan clearing bank in Europe

#83

Post by westpfelia »

decimalenough wrote: post #47
pizzathyme wrote: post #22

The US wields incredible negotiating power and hegemony because the dollar is the world’s reserve currency. Like the British pound and the Dutch guilder before it, if that loses reserve currency status it will be harder to borrow on favorable terms, which would affect the entire US economy. This is a big step in that perhaps starting to happen over the next few decades.

The yuan will never become a reserve currency as long as China maintain tight currency controls around importing and exporting it. It's very difficult to (legally) send CNY out or China. The euro is in a much better position to be adopted as an alternative, but its share of global reserves has been flat at around 20% for years. https://data.imf.org/en/news/imf%20data%20brief%20march%2027

No, and I dont think China wants the Yuan to be the reserve currency. But this is a good step in allowing better currency trading/exchange. Which can make imports between the EU and China cheaper.

Re: Deutsche Bank becomes first foreign yuan clearing bank in Europe

#84

Post by amrit3128 »

BaardFigur wrote: post #48

Not a good thing. China is an authoritarian regime, which we need to reduce dependency on, not increase it.

Blood money isn't red in color. USA has more war crimes in the past 5 decades than almost all other major countries combined. But that doesn't matter when you're profiting. Same goes here.

Re: Deutsche Bank becomes first foreign yuan clearing bank in Europe

#85

Post by MichaelZuo »

budsniffer952 wrote: post #77
pizzathyme wrote: post #22

The US wields incredible negotiating power and hegemony because the dollar is the world’s reserve currency. Like the British pound and the Dutch guilder before it, if that loses reserve currency status it will be harder to borrow on favorable terms, which would affect the entire US economy. This is a big step in that perhaps starting to happen over the next few decades.

Losing the reserve currency doesn't happen in a vacuum. It happened to the British and Dutch because their empires were dismantled. So, yeah, it could happen to the US, slowly, over time (it already is). But nobody wakes up tomorrow and says they no longer want USD. Where are you parking the money, yuan?

Deutche Bank I imagine is doing this because a significant fraction of their customers literally want to park their money in yuan?

If it was some rounding error they wouldn’t have bothered spending money to set it up and get all the clearances.

Re: Deutsche Bank becomes first foreign yuan clearing bank in Europe

#86

Post by xingped »

darrenf wrote: post #59
xingped wrote: post #30

Earlier quoted context omitted.

It's a little confusing, but technically RMB (renminbi) is the official name of the currency and CNY (yuan) is the base unit of the currency. Think of it like the difference between USD ("US Dollar") vs "dollar and cents", except there is no fractional yuan equivalent of cents, so it's all just yuan.

Pretty sure the jiao (角) (1/10th of a yuan) is still in use?

Oh yeah, you're right, I forgot about that. It doesn't really get used much except occasionally for very small transactions, usually ones less than 10yuan.

Re: Deutsche Bank becomes first foreign yuan clearing bank in Europe

#87

Post by seanieb »

decimalenough wrote: post #47
pizzathyme wrote: post #22

The US wields incredible negotiating power and hegemony because the dollar is the world’s reserve currency. Like the British pound and the Dutch guilder before it, if that loses reserve currency status it will be harder to borrow on favorable terms, which would affect the entire US economy. This is a big step in that perhaps starting to happen over the next few decades.

The yuan will never become a reserve currency as long as China maintain tight currency controls around importing and exporting it. It's very difficult to (legally) send CNY out or China. The euro is in a much better position to be adopted as an alternative, but its share of global reserves has been flat at around 20% for years. https://data.imf.org/en/news/imf%20data%20brief%20march%2027

Does the world still require a reserve currency? Spreading risk across the Dollar, Yuan, and Euros seems more logical. While the hurdles and friction associated with foreign exchange (FX) and international transfers were significant when reserve currencies were crucial, they are not as big an issue today.

Re: Deutsche Bank becomes first foreign yuan clearing bank in Europe

#88

Post by bamboozled »

blahblaher wrote: post #68
lenerdenator wrote: post #55

Ah, yes, the best way to react to increased authoritarianism in the US is to checks notes begin doing more business with a country that is the final word in authoritarianism.

the big difference is that China is not bombing anyone, and causing chaos to it's allies..

They are supporting countries doing the bombing…

Re: Deutsche Bank becomes first foreign yuan clearing bank in Europe

#89

Post by tommica »

westpfelia wrote: post #83
decimalenough wrote: post #47

Earlier quoted context omitted.

The yuan will never become a reserve currency as long as China maintain tight currency controls around importing and exporting it. It's very difficult to (legally) send CNY out or China. The euro is in a much better position to be adopted as an alternative, but its share of global reserves has been flat at around 20% for years. https://data.imf.org/en/news/imf%20data%20brief%20march%2027

No, and I dont think China wants the Yuan to be the reserve currency. But this is a good step in allowing better currency trading/exchange. Which can make imports between the EU and China cheaper.

For a moment, after that EU will come up with a new regulation / taxation causing everything to become more expensive again.
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