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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

#371

Post by Danox »

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

He who has the strongest economy and make things surprise surprise. In time they become the currency of choice.

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

#372

Post by Danox »

jcfrei wrote: post #303
somenameforme wrote: post #177

Earlier quoted context omitted.

Prior to Bretton Woods countries were well aware that no single country could be entrusted with the power granted in being the global reserve currency. It's too much power that's too tempting to abuse. But they also learned from the collapse of Bretton Woods that even orchestrated agreements with built-in penalties just don't work, because countries can simply ignore them when beneficial. So I think we're headed to a…

> Prior to Bretton Woods countries were well aware that no single country could be entrusted with the power granted in being the global reserve currency. That's a misleading statement. First of all at the beginning of the 20th century the British pound was clearly the global currency - where a lot of the international commerce happened. Then towards the 1930s and later on the Dollar took over that role. But that role…

Britain’s downfall was World War I

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

#373

Post by toomuchtodo »

Danox wrote: post #364
toomuchtodo wrote: post #256

Earlier quoted context omitted.

China's population is declining while building and operating the largest fleet of manufacturing robotics in the world. The US population is not declining as quickly while having limited capability to do anything. A recent example is $500M of taxpayer dollars spent on a munition manufacturing facility that did not build a single munition. The US has coasted just about as far as it can go on it's exorbitant privilege w…

That sounds like a wish? China has 1.3 billion people in an area the size of 1/3 of the United States (basically the area from the Atlantic Ocean to the Mississippi river Florida to Maine). Imagine if the United States had 1.3 billion people just in that area with the rest of the country being the equivalent of the Tibetan Plateau). One could argue that you would need/want to have fewer people not more.

I am arguing that population is not a component of success criteria, but steady state manufacturing capacity is. China has it, the US doesn't, China continues to cultivate and prioritize it, the US doesn't. If I want to build something of high value at scale, am I going to do it in the US or China? The answer to that remains clear, I'm on the next flight to Shenzhen.

For example, China can build ~20M EVs a year, the US ~1-3M per year, as of this comment.

Ember Energy: China Cleantech Exports Data Explorer - https://ember-energy.org/data/china-cleantech-exports-data-e... (updated monthly)

> As the world’s largest manufacturer of clean technologies, data on China’s cleantech exports provide an important early insight into the pace and scale of the energy transition. In 2024, China produced around 80% of the world’s solar PV modules and battery cells, and 70% of electric vehicles.

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

#374

Post by Danox »

brazukadev wrote: post #261
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

The yuan doesn't need to become a reserve currency for it to impact the US dollar. 15%+ of global trade is Chinese import/export. China is the biggest buyer and seller to most countries.

The United States is currently doing most of the damage to itself China or the EU really don’t have to do anything. Americans are shooting themselves in the foot.

One piece of good news is what the Norwegians are continuing to do with the Norwegian sovereign fund thinking ahead… one country took the resources from the north sea, and came up with a plan the other across the north sea squandered everything.

https://tradersunion.com/news/editors-picks/show/2984751-nor... Norwegian sovereign fun post 184 billion dollar profit

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

#375

Post by kasey_junk »

hk1337 wrote: post #302

I'm curious what other banks have this ability? Is this the first foreign yuan clearing bank in Europe or in the World?

Singaporean banks have been able to do this for a year or two as well.

JP Morgan clears directly as well.

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

#376

Post by Danox »

mrtksn wrote: post #272
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

what’s stopping China from dropping currency controls in a ab afternoon? It’s not like this is some force of nature.

You’re getting it confused China doesn’t have to do anything just sit back with a bag of popcorn and watch the United States put on a show.

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

#377

Post by dzonga »

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.

I feel like the corrupt Trump regime has accelerated this.

what other people tend to forget - money is just an exchange mechanism - the real currency is energy.

europe is already paying for Russian gas in rubble, china will soon exclusively be taking payments in yuan.

with so much green energy coming online - do you really need a massive foreign currency buffer - if you're not buying finite hydrocarbon energy ?

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

#378

Post by cindyllm »

Danox wrote: post #376
mrtksn wrote: post #272

Earlier quoted context omitted.

what’s stopping China from dropping currency controls in a ab afternoon? It’s not like this is some force of nature.

You’re getting it confused China doesn’t have to do anything just sit back with a bag of popcorn and watch the United States put on a show.

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

#379

Post by throwaway473825 »

thelastgallon wrote: post #194
pjc50 wrote: post #129

Earlier quoted context omitted.

> In some countries it's well over 50%. China of course being one of them As always with these stats, I like to check whether that includes plug in hybrids, and it does. Those are still mostly dependent on fossil fuels, although they use less. Pure BEV adoption seems to depend on your radius from Norway: https://www.autonergy.co/blog/global-ev-adoption-leaderboard... (France should really be doing better, after all m…

Thats personal vehicles. But if China is going full speed with electric trucks, that will be the fastest gamechanger. Diesel trucks run 300K miles, under 5mpg, consume a gazillion gallons. Electric truck fuel costs are probably 10%. Its really sad that India is pro fossil fuel, it has an opportunity to follow China's strategy.

India is literally following China's "anything but oil and gas", which encourages renewables, nuclear and coal.

In fact, the Chinese coal lobby is partially responsible for the push for electric trucks. The alternatives are diesel and LNG - both competitors to coal.

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

#380

Post by toomuchtodo »

Danox wrote: post #360
toomuchtodo wrote: post #170

Earlier quoted context omitted.

Saudi Arabia needs oil prices at ~$86.60/barrel to balance their budget, per Bloomberg. It is not the marginal cost to pump a barrel, but what a country needs to support their sticky spending from previously assured energy exports. Governments will collapse long before we approach low single digit oil prices on the global market. The World Is Awash With Oil and Prices Are Poised to Keep Falling - https://www.bloomber…

China is currently pursuing all types of energy/solutions. They are not stuck on any particular one, is that because they’re run by engineers instead of lawyers/MBA’s…

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