Canada and China Import-Export Payment

SADAKHUSH

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Our Canadian PM was in China and has signed an agreement to bypass US dollar in favour of our own and Chinese currency as a method of payment for Importing and exporting the goods. I would like to speculate that this trend will continue between China and her trading partners. If this does happen, how will this effect the value of USA dollar and Chinese currency respectively in the daily trading of currencies? Will dollar loose its valuation against other currencies and Chinese currency strengthen? Can this lead to shifting of manufacturing jobs to countries who are going to stay with USA Dollar as a currency for trading goods and services? As we know the main engine of Chinese economy is manufacturing if that slows down , how will this effect the internal social harmony as Chinese leadership calls it? Will there be jobs losses which might put pressure on CCP regime to back off from the much desired goal to replace USA dollar as currency of choice for trading good and services? If this happens than it will be another misstep of the CCP regime.

I will appreciate the detailed feed back on the points raised by me.

Thank you for your time.
 

nimo_cn

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then people should help with the internationalization of RMB, because that will bring down the Chinese economy.

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Srinivas_K

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then people should help with the internationalization of RMB, because that will bring down the Chinese economy.

Sent from my HUAWEI P7-L07 using Tapatalk 2
Can you explain what do you mean?

Internationalization of RMB will make Chinese currency strong !!
 

sorcerer

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China Currency Gaining Among American Corporations

Here's a good one for those who think the dollar's days are numbered. A survey released last week by HSBC Global says more U.S. multinationals are closing trade transactions in"¦you guessed it"¦the Chinese yuan.

Of course, this sort of news is right up HSBC's alley. They are one of the premier financial centers in Hong Kong, where much of the off-shore Chinese currency transactions take place. It's like a dream come true for the old colonial bank: the yuan increasingly being taken seriously as a viable trade currency.

According to the survey, U.S. businesses have joined a growing number of German and French firms using the yuan and more plan to use it "amid expectations by business leaders that their trade with China will increase in the next 12 months," HSBC said in a press release on Wednesday.

Seventeen percent of U.S. businesses surveyed said their companies had used the yuan to settle trade this year, up from 9% last year. A total of 102 U.S. firms were part of the global survey that spread out along 11 countries. The global average was 22%.

The number now places U.S. businesses just behind French (26%) and German (23%) businesses in terms of yuan transactions outside of China, Hong Kong and Taiwan.

Even better fodder for the dollar death watchers, 22% of U.S. businesses who aren't already using the yuan in transactions said they plan to use it within the next six months to five years, up from just 8% a year ago. Globally, an average of 32% of business leaders said they planned to use the Chinese currency in the future.

"As China continues to internationalize its currency, there are more opportunities and considerations in trade, investment, cash management and funding for U.S. companies," said Steve Bottomley, Head of Commercial Banking for North America at HSBC Bank U.S.A. Bottomley said that American businesses are becoming more comfortable using the yuan and are increasingly making it part of their competitive strategy and planning.

The yuan is not set to overtake the dollar in Asian trade just yet. But as trade with China grows, one thing is certain: more American companies are willing to settle in yuan and hold that currency in accounts rather than exchange them for dollars.

In the next 12 months, 55% of U.S. businesses said they expect trade with China to grow, down from last year when 76% said trade flow should improve.

U.S. businesses now sell about 7% of their exports to China, compared to just 1% a decade ago. HSBC expects that to increase to 14% by 2030, adding to yuan demand.

HSBC also forecasts that a third of China's trade will be settled in its own currency by 2015 and that the currency will be fully convertible within three years.

Most U.S. businesses surveyed said they don't use the yuan in trade settling because they don't understand or aren't aware of the benefits of using it.

In other countries, executives said the top reasons for using the yuan were meeting demand from counter-parties, minimizing foreign exchange risks and increased convenience.

Using the yuan "also improve business relationships by making it more convenient for their Chinese counterparties, who may be reluctant to take on dollar exposure because their cost base is denominated in renminbi," said Martin Brown, corporate lending chief at HSBC Bank in the U.S.

source:China Currency Gaining Among American Corporations - Forbes
 

sorcerer

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Self delete- Duplicate post
 
Last edited:

sorcerer

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Can you explain what do you mean?

Internationalization of RMB will make Chinese currency strong !!
:lol:
Ya know how the Chinese talks !!! Say yes for a No and No for an Yes...
Its a fact that even their rulers want to internationalize it.

But there are a few fact, but for China, who takes the risk to take USA headon wouldnt mind this economical risk.

You can read it here.. its quiet long, with graphs and all...Enjay!!! Have a nescafe!

Does Internationalizing the RMB Make Sense for China? - Carnegie Endowment for International Peace
 

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