A China-based bank that's trying to de-dollarize global lending is now having trouble repaying its dollar debts

[MH.Yang]

deflation does not means you do not lack money, in fact, when you say "lack investment channel" it mean you don't have enough capital flow, which mean you don't have enough money.......

The problem with any Chinese bank dealing with international loan is the same old problem, it's capital control. Unless RMB can free flow, China most likely will not deal large amount of loan in RMB. And you cannot comment the same way between USD and CYN, one is freely floated, one is not, USD would represent the actual market environment, CYN represent CCP monetary policy.

China has 3.2 trillion US dollars in foreign exchange reserves, 900 billion US treasury bond, 9.3 trillion US dollars in international financial assets and 3.3 trillion US dollars in obligatory right. And China has a surplus of nearly one trillion US dollars annually.

Do you think the Chinese govt is short of money?

The current situation in China is caused by the Chinese people's risk aversion mentality during the epidemic. In 2022, China's total national deposits increased by 17.84 trillion CNY (2.5 trillion US dollars), with a 71% increase in total deposits. Chinese people deposit all their money in banks, and liquidity will naturally decrease. But you guessed it a bit correctly. The Chinese govt really doesn't want to print money to solve the problem, because the market doesn't actually lack money, it just goes into banks. So the Chinese govt needs appropriate investment channels to return bank money to the market through investment.

 

[jhungary]

China has 3.2 trillion US dollars in foreign exchange reserves, 900 billion US treasury bond, 9.3 trillion US dollars in international financial assets and 3.3 trillion US dollars in obligatory right. And China has a surplus of nearly one trillion US dollars annually.

Do you think the Chinese govt is short of money?

The current situation in China is caused by the Chinese people's risk aversion mentality during the epidemic. In 2022, China's total national deposits increased by 17.84 trillion CNY (2.5 trillion US dollars), with a 71% increase in total deposits. Chinese people deposit all their money in banks, and liquidity will naturally decrease. But you guessed it a bit correctly. The Chinese govt really doesn't want to print money to solve the problem, because the market doesn't actually lack money, it just goes into banks. So the Chinese govt needs appropriate investment channels to return bank money to the market through investment.

That only mean you know nothing about cash flow. Because none of what you mentioned is "Liquid Asset" which you can loan out

You can't use those 3.2 trillion forexes in a short time, a typical exchange would take T+3, and you are talking about maybe a thousand dollar transaction, it's not like those are money in your bank and you can withdraw them anytime.

You cannot sell bond/asset until you have found a buyer.

And drawing right is not convertible.

What China lack is what we call line of credit. You do not have enough RMB to circulate, because every bit of RMB is tied down to typical asset, you don't have enough from your central bank to extend line of credit like western institutions. And that in turn because of Chinese Capital Control policy, you cannot freely trade the currency of China, then how or why you want to have a lot of line of Credit?

Money in the bank is not exactly money in your bank like you think, once that money reaches your bank it no longer become circulated because the bank would use it to invest and growth their money, also national deposit is not exactly about to be able to sustain bank operation, which include loans, unless you are thinking 2 or 3 trillions dollars is enough for Blue Chip banks country wide that secure international loan, you probably going to need 10 times that.

Again, I would recommend you stick with stuff that you do know....And you apparently know nothing about this

 

[nahtanbob]

The current situation in China is caused by the Chinese people's risk aversion mentality during the epidemic. In 2022, China's total national deposits increased by 17.84 trillion CNY (2.5 trillion US dollars), with a 71% increase in total deposits. Chinese people deposit all their money in banks, and liquidity will naturally decrease. But you guessed it a bit correctly. The Chinese govt really doesn't want to print money to solve the problem, because the market doesn't actually lack money, it just goes into banks. So the Chinese govt needs appropriate investment channels to return bank money to the market through investment.

All your OBOR/CPEC investments are gathering dust
basically you are screwed

 

[MajesticPug]

From the Fake News General... of course.

China isn't actively trying to de-dollar. In fact, de-dollarizing now hurts China's national interests because China still holds a huge amount of dollars and US debts. Contrary to fake news channels' portrays, other countries like Russia, Brazil, Iran, etc. are more into de-dollarization than China is. Yet they are not trying to replace dollars with RMB. Neither is China actively trying to do that. In the forseeable future 5-10 years, dollars will still dominate. These nations hope to find a balance of using another currency or at least not to wholly depend on dollars to make trades a decade later.

 

[Han Patriot]

lol then remove capital controls

see what happens to your xi bucks



what xi gonna do, make rmb/forex only freely exchangeable for foreigners?

Why should we? Capitals controls are there to avoid speculative hot money.

 

[CIA Mole]

Why should we? Capitals controls are there to avoid speculative hot money.

lol no one says you have to, it's up to chief terror economist xi anyways

but as it stands there's 0 advantage and only disadvantages to holding RMB as a foreigner over USD, EUR, JPY, CAD, AUD, gold, etc...

i would only hold some RMB if it can be freely exchanged and not backed by terrorism ideology of communism

 

[GreatHanWarrior]

That only mean you know nothing about cash flow. Because none of what you mentioned is "Liquid Asset" which you can loan out

You can't use those 3.2 trillion forexes in a short time, a typical exchange would take T+3, and you are talking about maybe a thousand dollar transaction, it's not like those are money in your bank and you can withdraw them anytime.

You cannot sell bond/asset until you have found a buyer.

And drawing right is not convertible.

What China lack is what we call line of credit. You do not have enough RMB to circulate, because every bit of RMB is tied down to typical asset, you don't have enough from your central bank to extend line of credit like western institutions. And that in turn because of Chinese Capital Control policy, you cannot freely trade the currency of China, then how or why you want to have a lot of line of Credit?

Money in the bank is not exactly money in your bank like you think, once that money reaches your bank it no longer become circulated because the bank would use it to invest and growth their money, also national deposit is not exactly about to be able to sustain bank operation, which include loans, unless you are thinking 2 or 3 trillions dollars is enough for Blue Chip banks country wide that secure international loan, you probably going to need 10 times that.

Again, I would recommend you stick with stuff that you do know....And you apparently know nothing about this

That only mean you know nothing about cash flow. Because none of what you mentioned is "Liquid Asset" which you can loan out

You can't use those 3.2 trillion forexes in a short time, a typical exchange would take T+3, and you are talking about maybe a thousand dollar transaction, it's not like those are money in your bank and you can withdraw them anytime.

You cannot sell bond/asset until you have found a buyer.

And drawing right is not convertible.

What China lack is what we call line of credit. You do not have enough RMB to circulate, because every bit of RMB is tied down to typical asset, you don't have enough from your central bank to extend line of credit like western institutions. And that in turn because of Chinese Capital Control policy, you cannot freely trade the currency of China, then how or why you want to have a lot of line of Credit?

Money in the bank is not exactly money in your bank like you think, once that money reaches your bank it no longer become circulated because the bank would use it to invest and growth their money, also national deposit is not exactly about to be able to sustain bank operation, which include loans, unless you are thinking 2 or 3 trillions dollars is enough for Blue Chip banks country wide that secure international loan, you probably going to need 10 times that.

Again, I would recommend you stick with stuff that you do know....And you apparently know nothing about this

lol no one says you have to, it's up to chief terror economist xi anyways

but as it stands there's 0 advantage and only disadvantages to holding RMB as a foreigner over USD, EUR, JPY, CAD, AUD, gold, etc...

i would only hold RMB if it can be freely exchanged and not backed by terrorism ideology of communism

A good dog, you have failed like your country.

 

[CIA Mole]

View attachment 934840


A good dog, you have failed like your country.

living under xi china commie terror feudal lords

 

[GreatHanWarrior]

All your OBOR/CPEC investments are gathering dust
basically you are screwed

More failed than your country?

All your OBOR/CPEC investments are gathering dust
basically you are screwed

Don't misunderstand. There is not much difference between India and Pakistan.

 

[GreatHanWarrior]

View attachment 934841

living under xi china commie terror feudal lords

More failed than your country?

Your country is like a dog like you.

 

[CIA Mole]

More failed than your country?

Your country is like a dog like you.

you are not even dog shit to your fedual owners

 

[GreatHanWarrior]

you are not even dog shit to your fedual owners

Your country is like dog shit. Everyone looks down on you.

 

[CIA Mole]

Your country is like dog shit. Everyone looks down on you.

people like you are why slavery exists

if people fought back, there wouldn't be slavery

 

[GreatHanWarrior]

people like you are why slavery exists

if people fought back, there wouldn't be slavery

Your country is the poorest, most backward and most failed country in the world. Everyone looks down on your country and your compatriot. Everyone discriminates against you.

Your funny performance just makes people feel ridiculous.

 

[nahtanbob]

Why should we? Capitals controls are there to avoid speculative hot money.

without free movement of reminbi's no one will want to hold it outside of China at least