China buying oil from Iran with yuan

[fd24]

because the FX rate is the standard of rich vs poor. Great logic. In that case El Salvador is a reach country cuz they have their currency pegged to the US dollar lol

And we buy technology from China. We're making Metros and inner city train systems ALL OVER IRAN. We are short of of inner city trains and our local production is not sufficient. In Tabriz the tracks are already set, but the trains are behind schedule! That's one example where China could be handy for Iran. They buy our oil in Yuan, we go back an buy trains (for example).

Agree its a win win situation for both nations.

 

[FaujHistorian]

Do you think Iran will spend all yuan to buy Chinese products? You must keep in mind that China has hell of $$$ reserves which she want to get ride off and she is also not under sanctions. So, Iran can buy any kind of product via China.

And you can't pass judgement on economy based on exchange rate USD>INR = 53, USD>JPY = 80. So, does it mean India is superior than Japan?

You will Sir, defend Iran no matter what.

Read my post again. The deal is a win for China that it can print whatever bills in Yuan and buy oil.
But for Iran it is a loss. Yuan ties Iran to buying China specific goods.

This is no different than Iran getting a tied loan where the donor says here is money baita, just go buy stuff from my shop.,

But Iran so stupidly is giving a precious commodity back to China.

Dollars or Euros on the other hand are international currencies. You can trade with any country using these.


So it is bad for Iran that it is being raped by China and India when it accepts country-specific currency.

Now one day when Yuan will become the same as dollar or Euro, then the game will be different.


On the topic of exchange rate, if the rate is stable or going up, it means economy is doing well. If it is tanking like Iranian rial, then it is bad. very very bad.

peace.

 

[Fanling Monk]

because the FX rate is the standard of rich vs poor. Great logic. In that case El Salvador is a rich country cuz they have their currency pegged to the US dollar lol

And we buy technology from China. We're making Metros and inner city train systems ALL OVER IRAN. We are short of of inner city trains and our local production is not sufficient. In Tabriz the tracks are already set, but the trains are behind schedule! That's one example where China could be handy for Iran. They buy our oil in Yuan, we go back an buy trains (for example).

Or you can setup some kind of mechanisms, stay away from SWIFT, in Hong Kong exchange yuan back to your local currencies. This setup is going to draw a lot of players in the world that don't want to be hostages of the western financial institutions and it'll ensure a second international currency against the dollar. The dollar is the tool the west use to enslave every nation.

 

[Great-M]

No country can print bills on its will dude you need something to support your currency like GOLD or bonds of Forgin govts or SDRs. It's not that simple to print the currency at will whole economy will collaps if any govt try to do that

Or you can setup some kind of mechanisms, stay away from SWIFT, in Hong Kong exchange yuan back to your local currencies. This setup is going to draw a lot of players in the world that don't want to be hostages of the western financial institutions and it'll ensure a second international currency against the dollar. The dollar is the tool the west use to enslave every nation.

It's not that simple. If you want to make yuan a hard currency your Governmet will lose control over it as its XR will be decided in market on demand and supply. I don't think that condition is in favour of China's economy. It can be done when China will be the biggest economy and second largest economy is half way behind china. Then and then it will be profitable for china

 

[longbrained]

You will Sir, defend Iran no matter what.

Read my post again. The deal is a win for China that it can print whatever bills in Yuan and buy oil.
But for Iran it is a loss. Yuan ties Iran to buying China specific goods.

This is no different than Iran getting a tied loan where the donor says here is money baita, just go buy stuff from my shop.,

But Iran so stupidly is giving a precious commodity back to China.

Dollars or Euros on the other hand are international currencies. You can trade with any country using these.


So it is bad for Iran that it is being raped by China and India when it accepts country-specific currency.

Now one day when Yuan will become the same as dollar or Euro, then the game will be different.


On the topic of exchange rate, if the rate is stable or going up, it means economy is doing well. If it is tanking like Iranian rial, then it is bad. very very bad.

peace.

Not really. Economics does not work like that. All currencies in the world today are fiat. So US is printing them too. The difference is China is not an indebted nation like US is. There is more likely the dollar will fail due to debt melting that Yuan ever will. Just like Soviet Union economy failed in late 1980's culminating in its downfall. The fiat currencies today have no backing except for the products produced in that nation. China is now the official factory of the world. There are not many things in the world that are not Chinese or have Chinese components in them. So it is a win win deal for both Iran and China. Yuan is safe and is backed by Chinese industrial production. Iran can go and buy stuff whether from China or other nations since all other nations also need to go to China to buy their stuff. This was bound to happen after the stupid sanctions. Dollar is going out.

 

[below_freezing]

You will Sir, defend Iran no matter what.

Read my post again. The deal is a win for China that it can print whatever bills in Yuan and buy oil.
But for Iran it is a loss. Yuan ties Iran to buying China specific goods.

This is no different than Iran getting a tied loan where the donor says here is money baita, just go buy stuff from my shop.,

But Iran so stupidly is giving a precious commodity back to China.

Dollars or Euros on the other hand are international currencies. You can trade with any country using these.


So it is bad for Iran that it is being raped by China and India when it accepts country-specific currency.

Now one day when Yuan will become the same as dollar or Euro, then the game will be different.


On the topic of exchange rate, if the rate is stable or going up, it means economy is doing well. If it is tanking like Iranian rial, then it is bad. very very bad.

peace.

RMB is accepted for payment by numerous countries. China has RMB settlement agreements with South Korea, Argentina, Singapore, Malaysia and Japan, among others.

In addition, lets face it: there's nothing China cannot produce. We can even create photolithography machines for semiconductor processes and have shipped etchers to South Korea (whose 91% of semiconductor machinery is imported). The RMB is safe.

Another important thing to note is that holding RMB is a form of arbitrage against the USD. That's because the RMB is continuously appreciating vs. the USD, while the USD is depreciating relative to oil and minerals (meaning that it's inflationary).

 

[longbrained]

Every one thoroughly read this article I am posting here if you do not want to lose your wealth. Dollar is going out and Iran sanctions are only a sign. Get ready: Ditching the Dollar | HoweStreet.com

 

[below_freezing]

oh I forgot to mention we buy UAE oil in RMB now. thanks for reminding me longbrained.

The UAE is not under sanctions. They *chose* to sell oil in RMB.

 

[longbrained]

oh I forgot to mention we buy UAE oil in RMB now. thanks for reminding me longbrained.

The UAE is not under sanctions. They *chose* to sell oil in RMB.

The days of dollar are numbered. Read the article I posted above. It is inevitable. All countries will switch to other currencies. US does not produce anything more except some arms which also have Chinese components in them. So why trade in dollar when the factories are in China?

 

[fd24]

The days of dollar are numbered. Read the article I posted above. It is inevitable. All countries will switch to other currencies. US does not produce anything more except some arms which also have Chinese components in them. So why trade in dollar when the factories are in China?

Me you and Aryan have been saying this for months. The dollars day has passed and it is and will be inevitable the yuan will inevitably hold the edge. Its transactions of this nature that will speed up the inevitable. Iran and China must be commended in this mutually beneficial transaction....

 

[Fanling Monk]

No country can print bills on its will dude you need something to support your currency like GOLD or bonds of Forgin govts or SDRs. It's not that simple to print the currency at will whole economy will collaps if any govt try to do that


It's not that simple. If you want to make yuan a hard currency your Governmet will lose control over it as its XR will be decided in market on demand and supply. I don't think that condition is in favour of China's economy. It can be done when China will be the biggest economy and second largest economy is half way behind china. Then and then it will be profitable for china

Obviously China has a different opinion from you. She is in the process now to make yuan exchangeable by trading yuan in different markets and is welcomed by many nations as many members above mentioned. The nations in the world need a second currency and only then they'll have independent foreign policies other than those of the US/NATO's.

 

[longbrained]

Me you and Aryan have been saying this for months. The dollars day has passed and it is and will be inevitable the yuan will inevitably hold the edge. Its transactions of this nature that will speed up the inevitable. Iran and China must be commended in this mutually beneficial transaction....

All smart people know this by now. That is why I tell to every one I meet not to keep their assets in US or in US dollars. It is too risky. I urge buying gold or investing in another currency and investing in places like China. When the fall comes, alot of people are going to get hurt.

 

[Great-M]

Obviously China has a different opinion from you. She is in the process now to make yuan exchangeable by trading yuan in different markets and is welcomed by many nations as many members above mentioned. The nations in the world need a second currency and only then they'll have independent foreign policies other than those of the US/NATO's.

You missed my point. I am not advocating USA or dollar. It was a economy point of view. Hard currency is something stable. All favouring countries make resevor of it. If this happen for yuan now guess who will buy yuan in most percentages ??? USA.
Strange ??? If your currency is second hard currency in the market first currency buy most of it and suddenly sell it at lower rates causing the fluctuations in currency value. Something like that happen to Euro. Plus keeping yuan value stable will be harmful to local industry. So I think China won't try it officially. It's in Chinese business interest that other countries accept payments in yuan so they have to have buy from China. Not because they want it to make globale currency. Not still next 1/2 decades or earlier if USA fall down which is most unlikely
So points need to yuan become a hard currency
1. Biggest economy of the world - China
2. Second biggest economy of world - 40/50 % lower than China.

 

[Boobytrap]

All smart people know this by now. That is why I tell to every one I meet not to keep their assets in US or in US dollars. It is too risky. I urge buying gold or investing in another currency and investing in places like China. When the fall comes, alot of people are going to get hurt.

Yeah and did u know that Yuan is almost fixed with dollar value ? And with extreme variations in gold prices, it is hardly a feasible long term investment option.

 

[Chinese-Dragon]

You will Sir, defend Iran no matter what.

And tell me, what is wrong with defending Iran?

peace.

You sign all of your posts with "peace". You sound like another one of those Indian false flag trolls.