Iran accepts renminbi for crude oil

[SinoChallenger]

Next Iraq will accept renminbi for oil too, and soon all the oil-producing African and South American countries. China already has a currency swap agreement with Russia. The petro-dollar is in its death throes. Anyone who is still holding US dollars when it collapses will lose everything.

 

[SHAHED]

Iran isn't a large importer man. We import grains whenever there is drought. Our geography doesn't allow for a uniform output every year. Last year was a bad one for example and we had to import a lot. Also, the regime is buying unlimited grain just in case there is a sudden embargo or war or whatever (just in case), but this is a recent thing. When it comes to fruits and vegetables, Iran and Turkey are always in the top 3-5 exporting countries of certain types so in that department we're good. We also produce rice in Northern Iran.

In many years we're just short a few m tons only and could actually meet most of the demand. Here are the biggest importers of wheat for example:

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[below_freezing]

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Is that your photo?

We have been in contact with North Microelectronics based in Beijing, how's that firm? And I heard Shenyoung is quite strong in the field too.

±±·½Î¢µç×Ó¹«Ë¾* Beijing NMC Co.,Ltd.

Their website looks quite professional and well done. They are a manufacturer of plasma etchers for 300 mm wafers, PVD machinery and industrial controls. More importantly, they have an established reputation in Europe, with clients in France and Germany.

 

[Korean]

do you know that S.Korea also accepts Renminbi ?

No they don't for imports(paid in dollars. There is no yuan forex in Korea.). They accept yuan for export to China, which is then swapped to dollars when sending the fund back home.

and most of the asian countries accept Renminbi

Major ones don't.

The whole point is that Yuan is not being used to pay between two non-Chinese parties unlike US Dollars, and Chinese companies do not quote in Yuan when exporting.

The only time the Yuan could be used to pay a party is for goods and services imported into China. The seller then exchange the Yuan to dollar to remit back home.

 

[below_freezing]

No they don't.


Major ones don't.

http://www.nytimes.com/2011/12/27/business/global/china-and-japan-in-currency-agreement.html

 

[Korean]

http://www.nytimes.com/2011/12/27/business/global/china-and-japan-in-currency-agreement.html

$10 billion worth of yuan holding is nothing for a central bank. It is more of a good will gesture, not that Japan is serious about trading with China in Yuan.

The key parameter is how much Yuan is used in international trades; Yuan currently ranks at 17ths, and Yuan denominated trade is declining. Why? Because

1. You cannot use Yuan for trade between two non-Chinese countries, thus any Yuan accepted must be converted into US dollars to be used.

2. It was China's state-owned firms demanding that the foreign exporters take Yuan as payment, but this fell out of favor because Yuan pricing must include the cost of swap to dollars, raising the cost for both Chinese state-owned firms and foreigners alike.
The reality is that Yuan denominated trades are for the show only, with the 99.75% of exports to China still denominated in US dollars, with the exception like Iran's oil export. And Chinese businesses almost always quote in US dollars when they are exporting abroad.

 

[kalu_miah]

The country that has the biggest defense budget will also have the most stable and convertible world reserve currency.

List of countries by military expenditures - Wikipedia, the free encyclopedia

USA defense budget = US$ 711 billion = 41% of world total = US $ as world reserve currency

 

[Abhishek_]

Next Iraq will accept renminbi for oil too, and soon all the oil-producing African and South American countries. China already has a currency swap agreement with Russia. The petro-dollar is in its death throes. Anyone who is still holding US dollars when it collapses will lose everything.

by that logic, it would be china

 

[below_freezing]

The key parameter is how much Yuan is used in international trades; Yuan currently ranks at 17ths, and Yuan denominated trade is declining.

China´s cross-border RMB settlement hits 2.58 trillion yuan CCTV News - CNTV English

BEIJING, Jan. 11 (Xinhua) -- China's cross-border trade settlement in yuan under current accounts hit 2.58 trillion yuan (408 billion U.S. dollars) by the end of 2011 since China launched the pilot program in July 2009, official figures showed on Wednesday.

 

[Korean]

China´s cross-border RMB settlement hits 2.58 trillion yuan CCTV News - CNTV English

BEIJING, Jan. 11 (Xinhua) -- China's cross-border trade settlement in yuan under current accounts hit 2.58 trillion yuan (408 billion U.S. dollars) by the end of 2011 since China launched the pilot program in July 2009, official figures showed on Wednesday.

You clearly don't understand what that article says, do you?

They are talking about all currency swap contracts involving Yuan, not just the trades denominated in Yuan, over three years amounting to only $408 billion, which isn't a lot when you consider $3 trillion dollars being moved in and out of China to settle for exports and imports a year.

Yuan-denominated trades constitutes a small percentage of China's all trades, and is losing steam due to cost disadvantages relative to dollar-denominated trades.

 

[below_freezing]

You clearly don't understand what that article says, do you?

They are talking about all currency swap contracts involving Yuan, not just the trades denominated in Yuan, over three years amounting to only $408 billion, which isn't a lot when you consider $3 trillion dollars being moved in and out of China to settle for exports and imports a year.

Yuan-denominated trades constitutes a small percentage of China's all trades, and is losing steam due to cost disadvantages relative to dollar-denominated trades.

Renminbi on the Rise


In just six months, cross-border trade settlements witnessed a 10-fold increase from RMB10b (NZD2b) per month in June 2010 to RMB101b (NZD19.8b) per month in December 2010.[1]

 

[Juice]

Soon they will accept glass beads and shiny trinkets.

 

[below_freezing]

Soon they will accept glass beads and shiny trinkets.

except glass beads and trinkets cannot access the market of the 2nd largest economy on earth.

 

[Juice]

except glass beads and trinkets cannot access the market of the 2nd largest economy on earth.

Perhaps you can double it and be....2nd economy on earth.

 

[below_freezing]

Perhaps you can double it and be....2nd economy on earth.

Depends. We use the GDP calculation methods used by the US before 1980. No one knows the actual size of the US economy today. That's because inflation is severely underestimated using the "new" method and there's frequent double counting. Dr. Chris Martenson has a great "Crash Course" that you can read on the questionable methods used.