Yuan – American Conservative Movement

End of Dollar’s Hegemony: Russian Oil Giant Now Using Yuan and Rubles for Export Settlements

Belle Carter, Natural News — Fri, 29 Sep 2023 17:41:18 +0000

(Natural News)—Russian oil producer Gazprom Neft, a subsidiary of energy giant Gazprom is now conducting crude trade with foreign partners with the Chinese yuan and Russian rubles – a significant step in reducing reliance on the U.S. dollar and euro, which both became unreliable following the Western sanctions imposed on the Eurasian nation.

The company’s CEO Aleksandr Dyukov revealed this information on the sidelines of the TNF Energy forum, which was held in the oil-rich Tyumen Region in Siberia.

The conventional practice of conducting international trade used to be done using major global currencies like the dollar and euro. This decision increasingly reflected a strategic move to align its trade practices more closely with the economic and geopolitical interests of Russia, as well as its significant energy ties with China.

According to Dyukov, the company has not experienced any problems withdrawing its export earnings in foreign currency since it started trading with the said currencies. It also receives its revenue from oil and petroleum products sales at short notice.

Meanwhile, despite a notable shift in other national currencies of a substantial portion of its export transactions, Dyukov mentioned that the Indian currency is still not being utilized in export settlements. “This decision underscores the company’s selective approach in transitioning away from traditional global currencies, taking into consideration the specific dynamics of its international trade relationships, Arabic business news agency MenaFN reported. “We don’t use rupees. We mainly use yuan and rubles. We have practically moved away from payments in dollars and euros,” the CEO said.

Also, Russia is not the only one moving to dethrone the USD. The China National Petroleum Corporation (CNPC) has agreed to switch payments for gas supplies to rubles (RUB) and renminbi (RMB) instead of dollars. According to Simon Watkins, former senior FX trader, financial journalist, and best-selling author, in the first phase of the new payments system, this will apply to Russian gas supplies to China via the ‘Power of Siberia’ eastern pipeline route that totals at minimum 38 billion cubic meters of gas per year (bcm/y).

“After that, further expansion of the new payments scheme will be rolled out. It is apposite to note at this point that although ongoing international sanctions against Russia over its invasion of Ukraine in February have provided the final impetus for this crucial change in payment methodology, it has been a core strategy of China’s from at least 2010 to challenge the U.S. dollar’s position as the world’s de facto reserve currency,” he said in an article he wrote on OilPrice.com.

He added that China has long regarded the position of its renminbi currency in the global league table of currencies as being a reflection of its own geopolitical and economic importance on the world stage. “As of 2022, the RMB’s share in the SDR mix has risen to 12.28 percent, which China still regards as not truly befitting its rising superpower status in the world,” he further pointed out. (Related: Dollar DEMISE: Yuan overtakes dollar in China’s cross-border payments.)

Bloomberg: Russia has advantages in the current global diesel shortage

The global energy market is faced with a shortage of diesel as refineries fail to make enough of the key industrial fuel, further exacerbated after OPEC+ heavyweights Saudi Arabia and Russia slashed production and exports of denser, more sulfurous crude used to produce diesel fuel vital for industry and transport. However, recent circumstances are making Russia the receiving end of all advantages.

The global diesel shortage, for example, is benefiting one of the nation’s key export crude blends, the Eastern Siberia-Pacific Ocean (ESPO), as it is being traded at a premium to global benchmark Brent, according to Bloomberg on Monday, citing unnamed market players. ESPO, which was named after the pipeline that carries it to export markets, climbed to a premium of about $0.50 a barrel to Brent on a delivered basis for October shipments to China, traders told the outlet. Brent crude was trading above $94 per barrel at the start of the week.

The Russian crude blend, which is especially suitable for diesel fuel production, saw its biggest price increase since the G7 and the European Union introduced a price cap on Russian oil and petroleum products. These “influential” economies were pushing to to cut Moscow’s energy revenues, according to Viktor Katona, lead crude analyst at energy analytics firm Kpler.

“[The] last time when ESPO was positive to Brent was back in November 2022,” said Katona. According to the analyst, along with private refineries, Chinese state processing plants have also boosted their purchases, taking up to seven more cargoes of October-loading ESPO than usual.

Visit DollarDemise.com for more news related to the crash of the U.S. dollar.

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De-Dollarization Intensifies: IMF Hints That Countries Will Soon Be Able to Repay Debt Using Chinese YUAN Currency

Ethan Huff, Natural News — Sat, 22 Jul 2023 18:46:59 +0000

Following Argentina’s recent debt repayment in the Chinese yuan, the International Monetary Fund (IMF) has hinted that it may soon accept the yuan from all countries that need to settle their debt obligations.

IMF spokesperson Julie Kozack confirmed that Argentina paid off $1.1 billion of its $2.7 billion debt using the yuan, and that it may soon become the norm for other countries to do the same.

“As we have stated in the past, the Argentine authorities continue to remain current on their financial obligations to the IMF,” Kozack said at a press briefing.

“The RMB is one of the five freely usable currencies that members can and have used to settle their obligations with the IMF,” she added, RMB referring to the official name of China’s currency, renminbi.

Negotiations on the $44 billion program are still ongoing, Kozack clarified, rejecting the claim that the IMF received a letter from China stating that it would allow Argentina to use a swap line with the Chinese Central Bank to pay off its IMF dues.

“Our team has been working intensively with the Argentine authorities to make progress toward the completion of the fifth review,” she added. “And to help the authorities address a very complex and challenging situation.”

“In terms of the details of those discussions, because the teams are still in discussion, I will not pre-empt those discussions, and I will not get into the details other than to say that the discussions are frequent, and they are aimed at advancing the program.”

Argentina shifts away from U.S. dollar as sole official reserve currency

Last month, Argentina’s central bank forged a deal with China to renew the 130-billion-yuan ($18.4 billion) swap line for another three years, doubling the amount of freely accessible funds from 35 billion yuan ($5 billion) to 70 billion yuan ($10 billion).

The Argentine Ministry of Economy said the single-tranche swap will be freely available for any type of financial use, adding that the country hopes to promote more yuan spot and future operations.

While it used to be that the United States dollar was the sole official reserve currency of Argentina, the country’s banks will now accept deposits of Chinese yuan in savings and checking accounts.

“Financial entities will thus be enabled to open bank accounts denominated in renminbi yuan,” Argentine authorities explained, signaling a shift away from the U.S. dollar as the sole official reserve currency of the country.

The move comes as Argentine crops are failing due to severe drought, grain exports being Argentina’s major source of dollar earnings. The losses have caused the South American country’s foreign currency reserves to plummet, not to mention the fact that the peso currency has weakened dramatically due to 109 percent annual inflation.

Earlier this year, Argentina’s neighbor Brazil signed an agreement with China to allow for trade and investments to occur in their own currencies rather than in U.S. dollars. This has further weakened the U.S. dollar’s world dominance.

Despite all this, “the yuan is a long way from an international reserve currency such as the dollar,” claims Milton Ezrati, chief economist at Vested, a New York-based communications firm.

According to Ezrati, China lacks the financial markets to supports financial arrangements in the yuan, this being one of the requirements for a world reserve currency.

“If you are the world’s reserve currency, as the dollar is, then traders all over the globe have to hold your currency because that’s the way they do their business,” Ezrati says. “If they hold your currency, they want a place to invest it.”

It will not be long before the world’s fiat Ponzi schemes crumble into dust. Learn more at Collapse.news.

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China Quickly Expanding Use of Yuan in Global Trade as It Seeks to Dethrone US Dollar as World’s Top Currency

Arsenia Toledo, Natural News — Thu, 18 May 2023 21:56:42 +0000

The Chinese government is taking the country’s currency – the yuan or renminbi – global in a bid to oust the United States dollar as the world’s foremost currency.

Chinese President Xi Jinping’s government has been busy over the past year striking deals to expand the ways in which the yuan is used. Countries like Argentina, Bangladesh, Brazil, Iran, Russia, Saudi Arabia and even France have recently signed new agreements linked to the use of the renminbi. (Related: DE-DOLLARIZATION: China now uses the yuan for cross-border transactions more than it uses the US dollar.)

“The yuan is becoming increasingly relevant as currency for international trade,” said Luis Galli, chief executive officer of the Newsan, one of Argentina’s largest home appliance retailers.

Last month, in a bid to relieve pressure on the Argentinian economy due to its lack of U.S. dollars, Newsan started settling deals in the Chinese yuan. This has been a boon for the company that mainly imports its products from China and, until recently, was paying for its appliances in the dollar.

This was followed by a deal the Argentine government struck with China in April to purchase around $1 billion worth of imports from China in yuan, and another $790 million worth of monthly imports thereafter. The Argentine government also activated a currency swap agreement, allowing Argentinian corporations to borrow yuan from China.

Other nations are making similar moves greatly benefiting China and increasing the prevalence of the yuan in the global stage.

Brazil last month announced that companies can now settle their trade in the yuan, and a major Brazilian bank – Banco BOCOM BBM – is now transitioning to using the yuan as its default currency for international transactions. Last month, Bangladesh announced it would conclude a $318 million deal with a recently sanctioned Russian nuclear power developer using the yuan.

Iran, which has been heavily sanctioned by the U.S. for decades, has been using the yuan to settle trade as far back as 2012 when it allowed China to purchase crude oil using the yuan. In February of this year, Tehran and Beijing reopened negotiations to expand the use of the yuan as well as the Iranian rial in bilateral trade.

And in Russia, the yuan has become exponentially prevalent in Russian financial life. Sixteen percent of exports and 23 percent of imports are paid for using the yuan, 11 percent of foreign exchange deposits are now made in the yuan and a whopping 40 percent of foreign exchange trading volumes involve the yuan.

Even President Emmanuel Macron of France, a key ally of the U.S., warned against the “extraterritoriality of the U.S. dollar,” suggesting in an interview that Europe should cut its dependence on the greenback. This comes at around the same time he signed a whole host of new commercial agreements with China, some of which will involve the use of the yuan.

American dollar’s place in the world stage slowly diminishing

The American dollar has been the world’s reserve currency since the Second World War and has for nearly a century played a massively outsized role in the world’s trade. Today, it remains the clear premier global currency and the U.S. is still considered the world’s foremost financial powerhouse.

But China’s latest moves are helping the communist nation carve out a bigger place for itself and the yuan within the international financial system. The de-dollarization campaign has quickened its pace since the Western world, led by the U.S., froze Russia’s entire stockpile of American dollars over its special military invasion in Ukraine.

This has led countries worldwide to diversify their own currency holdings for fear of the U.S. unilaterally making similar moves against their own economies. They consider what happened to Russia as a warning over the oversized power that Washington currently wields and a sign that the world needs to create an alternative financial system.

“[China] is working to demonstrate that there’s a world outside of the U.S. and the Western world,” warned Adrian Zuercher, an executive at UBS Global Wealth Management’s Hong Kong office. “You’re sending a very strong signal to the U.S. by basically saying we don’t need you and we don’t need your U.S. dollar.”

“China’s willingness to maintain growth while paving new paths lends itself for other nations to have greater confidence to use the yuan,” said Victor Gao, a spokesperson for the Chinese Communist Party. “If the U.S. wants to rock the boat, then China will need to make necessary amendments to meet the challenges.”

Learn more about the declining status of the American dollar on the world stage at DollarDemise.com.

Watch this episode of the “Health Ranger Report” as Mike Adams, the Health Ranger, warns about the accelerating speed at which the world is divesting from the dollar.

This video is from the Health Ranger Report channel on Brighteon.com.

China Says Massive Dollar DUMP on the Way, Prepare for Yuan Buying Spree

Ethan Huff, Natural News — Tue, 04 Oct 2022 18:21:30 +0000

Not since the 2008 financial crisis has communist China’s yuan currency been as weak as it is now, which has prompted the People’s Bank of China to issue a warning about a coming dollar dump and yuan buyback.

All major state-run banks in China have been told to prepare for this coming event, which will aim to hike up the failing yuan, which fell 0.9 percent to 7.1340 against the dollar this week – its worst annual decline since 1994.

So far this year, the yuan has lost 11 percent of its value, while the U.S. dollar has reached 20-year highs due to “hawkish” policies from the Federal Reserve. (Related: America’s fiat money system is nothing more than a Ponzi scheme that benefits the rich.)

The amount of dollars that China plans to sell has not yet been decided. What we do know is that the move will primarily involve state banks’ currency reserves, including offshore branches in Hong Kong, New York and London.

US Fed’s currency manipulation triggering a “reverse currency war”

There exists a psychological threshold of 7-per-dollar for the yuan that was recently breached, hence the People’s Bank of China’s new proposition. China’s hope is that it will prop back up the yuan and combat the Fed’s “reverse currency war.”

The People’s Bank of China has consistently imposed a strong bias to its currency reference rate for the purpose of supporting the yuan. The private central bank has also issued verbal warnings against speculating on the yuan, as well as increased the cost of shorting the currency.

Instead of raising benchmark rates, the People’s Bank of China has instead been easing them in an attempt to spark growth amid an economy shattered by Fauci Flu (covid) lockdowns, the Chinese real estate crash, and flailing supply chain conditions.

According to Reuters, some of communist China’s efforts to save the yuan “against an unstoppable dollar” have been successful, but will they ultimately be enough?

“Considering the strength of the dollar, we now expect (the dollar / yuan rate) to trade around 7.40 around October and November,” said SEB in a note.

This is among the more bearish forecasts, along with those of ANZ and Goldman Sachs, which predict a yuan rate of 7.20 per dollar over the next three weeks or so. Citi, meanwhile, is predicting a yuan rate of 7.30 per dollar.

Over the past month, expectations of future volatility priced into one-month yuan options have doubled. This is a sign that investors do not foresee China’s new measures to work as hoped.

The stakes are said to be high, seeing as how China is entering a week-long national holiday. Efforts to stabilize the yuan rate remain critical as the ruling Chinese Communist Party (CCP) is set to open its once-in-five-years congress on October 16.

Capital outflows are fueling financial instability across the nation, which is only being exacerbated by the weakening yuan. Foreign investors reportedly cut holdings of Chinese bonds for the seventh straight month in a row in August.

“On the monetary policy front, the weaker yuan, fueled by the wide gap between low Chinese interest rates and rising U.S. rates, makes it harder to ease policy to support China’s faltering economy, the world’s second largest,” reports explain.

“The yield gap between China’s benchmark 10-year government bonds and the U.S. Treasury for the same tenor is hovering at the widest in 15 years.”

According to Ju Wang, head of Greater China FX and rates strategy at BNP Paribas, China’s central bank must learn how to create a balance between being market-oriented and “ensuring financial stability.”

More related news coverage about the U.S.-led reverse currency war can be found at DollarDemise.com.

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CCP Partners With Bank for International Settlements to Displace the Dollar

Antonio Graceffo — Sat, 06 Aug 2022 01:07:30 +0000

“We will cultivate a trading center and pricing mechanism that puts China first (以我为主) and actively promote settlement in local currency.” excerpt from the Chinese Communist Party’s (CCP’s) 14th five-year plan for 2021–25.

The CCP’s yuan liquidity pool with the Bank for International Settlement is not just a challenge to the dollar, it’s also one more example of China’s increasing influence over global organizations.

The CCP has been trying for years to internationalize the yuan as well as decrease the dollar’s dominance in international trade as both an exchange and reserve currency. On June 25, the People’s Bank of China announced its plan to partner with the Bank for International Settlements (BIS) and five other central banks to create a yuan liquidity pool aimed to stabilize economies during periods of market volatility. Apart from the PBC, the founding members of the new pool are Bank Indonesia, the Central Bank of Malaysia, the Hong Kong Monetary Authority, the Monetary Authority of Singapore, and the Central Bank of Chile.

Under the terms of the agreement, each member will contribute $2.2 billion worth of dollars or yuan to the pool known as the Renminbi Liquidity Arrangement (RMBLA). The balance will be held by BIS which will release funds to members, in times of need, through a collateralized liquidity window.

Over the decades, BIS has cooperated with the central banks of reserve currency-issuing countries to implement liquidity support packages, which they provide to other nations during times of market stress and instability. The Yuan Liquidity pool is the first such arrangement that has been made using yuan and is a step toward achieving the CCP goals laid out in the 14th five-year Plan. This plan calls for a return to globalization and a gradual internationalization of the currency.

The plan also refers to the “weaponization of finance in recent years,” which is a veiled reference to the U.S. economic sanctions against Russia in response to the invasion of Ukraine. Among those sanctions was a ban that blocked seven Russian banks from using the Society for Worldwide Interbank Financial Telecommunication (SWIFT).

In an attempt to insulate itself from a U.S.-dominated financial system, China created its own SWIFT-like system in 2015 called the Cross-Border Interbank Payment System. In the same year, China managed to have the yuan added to the International Monetary Fund’s (IMF’s) special drawing rights currencies. In 2020, U.S. sanctions on CCP officials over the dissolution of Hong Kong’s freedoms accelerated Beijing’s efforts to circumvent the U.S.-led global financial system. To this end, they have been in negotiations with Saudi Arabia to settle oil trades in yuan and to settle trade with Russia in rubles or yuan. There have also been discussions through the Belt and Road Initiative for African countries to increase their yuan reserves and to settle trade with China in yuan.

Russia has served as a cautionary tale for the CCP. Seeing the damage that U.S. sanctions and removal from the SWIFT system can do to an economy, Xi Jinping is redoubling his efforts to create a parallel China-led global financial system. Given the current state of the Chinese economy, with growth projections the lowest in decades, many analysts feel it is unlikely that China would make a move on Taiwan until it has first found a way to function outside of the U.S. system and without dollars.

The U.S. Federal Reserve’s increasing interest rates to combat inflation has attracted investment to the United States, but it has also made borrowing in U.S. dollars more expensive. As the Bank of China has so far refused to raise interest rates, borrowing in yuan may be more attractive for the five member countries of the RMBLA. In August, the yuan’s allocation in the IMF’s special drawing rights currency will be increased to 12.28 percent, a signal that the yuan is becoming internationalized. Currently, the yuan accounts for only 2.14 percent of global payments. As China is a major trading partner of the other RMBLA members, it may become expedient for them to hold more yuan in reserves and to settle trade with China in yuan.

So far, the internationalization of the yuan has been slowed by the CCP’s tight controls on capital flows, manipulation of the currency, and lack of transparency. However, the new cooperation with BIS will put the world one small step closer to yuan globalization while the CCP moves toward its goal of financial independence and a yuan-backed world financial system.

Article by Antonio Graceffo from our premium news partners at The Epoch Times.