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Re: The Yuan & only!
This seems big.Xu Shanda, former vice director of the State Administration of Taxation and a CPPCC National Committee member, urged for faster paces in making the yuan an international currency as a way of increasing national wealth.
He said the United States and the European Union have obtained hefty royalties from the international use of their currencies while China has become the biggest source of that income.
A royalty, or seignior age, results from the difference between the cost of printing currency and the face value of the money.
"China's loss due to royalty payment has far exceeded the benefit of not making the yuan an international currency," he said in a speech to the annual session of the CPPCC National Committee, without elaborating.
China's State Council, or Cabinet, said last December it would allow the yuan to be used for settlement between the country's two economic powerhouses -- Guangdong Province and the Yangtze River Delta -- and the special administrative regions of Hong Kong and Macao.
Meanwhile, exporters in Guangxi Zhuang Autonomous Region and Yunnan Province will be allowed to use Renminbi to settle trade payments with ASEAN (Association of Southeast Asian Nations) members. -
Re: The Yuan & only!
would be wonderful, but i'm skeptic china will make drastic changes like that.
They always moved the ship to another direction very slowly.
I take it this is just CP news for the general public telling everybody china's strong as ever.
However, I know of many people that trade with vietnam, thailand, nepal etc, their partners nowadays choose to be paid in rmb instead of dollars (even though it complicates things a lot), a paradox, because the rmb is linked to the USD.Comment
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Re: The Yuan & only!
I have some doubts about any currency replacing the mighty US Dollar as what would happen to the value of China/Japan/Saudi profit/dollar holdings? it would probably tank, kind of like the scene in the movie "Rollover" where the whole world went bust in a few days. No, problem is lack of trust, transparency and accountability/prosecution of those who have lied and cheated the common peoples.Comment
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