Tracking China's Progress in Internationalizing the Yuan
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- Опубликовано: 7 июл 2024
- Making the yuan a global currency is at the center of Chinese President Xi Jinping's ambition to create a "modern financial system with Chinese characteristics." That goal has faced challenges, however, including capital controls in China and the currency's limited convertibility.
Matteo Maggiori, Moghadam Family Professor of Finance at Stanford Graduate School of Business, and Bloomberg Intelligence Chief Asia FX and Rates Strategist Stephen Chiu speak on "Bloomberg: The China Show."
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Why isn't it obvious why RMB share of trade has been "falling"? It's because these analysts assumes that all trade is conducted through SWIFT and that is the only mechanism that they have been using all these decades. RMB is now being used outside of the prying eyes and meddling.
Who cares w CBDC? You?
@@ssuwandi3240 You.
@@ssuwandi3240 calm down, mate, they are definitely collapsing.
countries leaders care but not minion like u apparent, then again, minion is irrelavent@@ssuwandi3240
To think that anyone other than the commi’s in Beijing could “meddle” with another country’s currency is hilarious 😂 RMB is weak because nobody wants to invest in a militaristic dictatorship with capital controls. Not even Chinese want to invest in China
The whole point is to not use swift.
Once swift became an economic weapon against those with ideological differences in the human society, it is being abandoned.
'Ideological differences' means it's OK for Putin to invade places, in your opinion
@16252
What can you say about, American invasion of Iraq, the unprovoked invasion of Afghanistan by America and The Genocide and Decades stealing of Palestinian land by Israel?
What about israel?
Collective security is hardly a weapon at the end. If you are aware of the #1 threat
@@ssuwandi3240 let the west keep their swift, if it is barter system, so be it.
so "international" only consists of USA and Europe.
Hahahaha exactly - they are the world bro you didn’t know that?!? They are god😂😂😂😂arrogant tools!
Japan as well.
Generally speaking OECD. But since recently, the global south is starting to realize this problem.
@@duncankowable japan is a vassal they aren't part of the in group yet
yep, the international means 12% of the world's population.
Lol, this is only Yuan in SWIFT. BRICs barely use SWIFT to begin with
Your understanding is wrong. I have Corporate accounts at ICBC and BOC in several countries. I take payment in RMB. I know first hand that my RMB is received via SWIFT to my ICBC and BOC accounts in Brazil, Malaysia, Singapore and Indonesia via SWIFT because we ask for payment transactions code that payment has been sent and they are all SWIFT codes. Our HSBC accounts also receive RMB via SWIFT. All our LCs denominated in RMB are also received via SWIFT in our accounts in Chinese banks overseas and non-Chinese banks like HSBC and OCBC. What is your proof that BRICS barely use SWIFT? I have yet to see a CIPS transaction code in any of our banks whenever a China customer pays us in RMB. CIPS is China’s version of SWIFT if you don’t know. We average 50-60 payment transactions a month in RMB so all I see is SWIFT even with non-Chinese banks who are direct participants of CIPS. Based on CIPS website which I just checked, CIPS is doing about 36K transactions a day, SWIFT is over 40 million a day.
if BRICS doesn't use SWIFT then what do they use? Genuine question
@@WarrenKLiu Comment is about intl trade , not your personal account 😂
China trades use own Cross Border Intl Settlement system. Now >50% settled in yuan vs USD
@@WarrenKLiu Anything shows the downfall of the West would make some people feel good. Facts do no matter at all.
@@pohmoh3590 erm... i stated these are all corporate accounts in my comment🤦
China use own Cross Border International Settlement system where >50% trades in yuan vs USD.
there mBridge project using digital currencies. Saudi Arabia just join mBridge where oil will be traded using digital yuan .
My reserves today is yuan & gold. Better safe than sorry.
You must be the same one that bought Alibaba and bili and other Chinese stocks years ago lol
@@famahyus im not onto stocks, im more unto bussinesses. Real businesses
@@andrean2247u sell potato chips? Got any discount code?
haha good luck
America calls it "Liberation" instead of "Invasion". That was what US call it in Iraq, Afghanistan, Libya, Syria, Yemen, Somalia and the list goes on... Why the double standard? Confused... Please enlighten. Genuine question...
Instances of the United States "liberated" or overthrowing, or attempting to overthrow, a foreign government since the Second World War. (* indicates successful ouster of a government)
China 1949 to early 1960s
Albania 1949-53
East Germany 1950s
Iran 1953 *
Guatemala 1954 *
Costa Rica mid-1950s
Syria 1956-7
Egypt 1957
Indonesia 1957-8
British Guiana 1953-64 *
Iraq 1963 *
North Vietnam 1945-73
Cambodia 1955-70 *
Laos 1958 *, 1959 *, 1960 *
Ecuador 1960-63 *
Congo 1960 *
France 1965
Brazil 1962-64 *
Dominican Republic 1963 *
Cuba 1959 to present
Bolivia 1964 *
Indonesia 1965 *
Ghana 1966 *
Chile 1964-73 *
Greece 1967 *
Costa Rica 1970-71
Bolivia 1971 *
Australia 1973-75 *
Angola 1975, 1980s
Zaire 1975
Portugal 1974-76 *
Jamaica 1976-80 *
Seychelles 1979-81
Chad 1981-82 *
Grenada 1983 *
South Yemen 1982-84
Suriname 1982-84
Fiji 1987 *
Libya 1980s
Nicaragua 1981-90 *
Panama 1989 *
Bulgaria 1990 *
Albania 1991 *
Iraq 1991
Afghanistan 1980s *
Somalia 1993
Yugoslavia 1999-2000 *
Ecuador 2000 *
Afghanistan 2001 *
Venezuela 2002 *
Iraq 2003 *
Haiti 2004 *
Somalia 2007 to present
Honduras 2009 *
Libya 2011 *
Syria 2012
Ukraine 2014 *
2014 - 2022 - 9 countries yet to verify.
Pakistan 2022 *
Haiti 2022 *
Niger 2023
So why you're still in Utoob ?
why u still here india is also bric's so u get out@@ssuwandi3240
@@ianthesiow3013 Bro copy pasting the same comment under every video.
@@endlessendless2391 doesn't matter if its copy paste if its the truth
Ten years ago I bought Yuan.
Today, I am still buying Yuan.
But don't follow me. Follow the numbers.
Garbage cash....of china
How come the ppl in the comments seem to know more than what the news tells us? 🙃
😂😂😂 the news 😂😂😂 you mean the us state propaganda
We usually come to mock them ...
And flex our propaganda proof brain 😂😂😂
Why would China want to internationalize its currency when it enjoy capital control? It’s a paradox for CPC party and why would they do that explain?
@@whitemoon5752 you need to be nice to your relatives for they risked the CCP wrath by helping you wire $50k a year. With that RMB is worthless to me.
De-coupling the Rivalry.
Back to old days of Mao😊
China is never wanna challenge Dollar as International Currency. They just wanna divert from Dollar cause they are afraid gonna get sanctioned or kicked out of current SWIFT and their Asset in Dollar get Freezed.
😅😅😅
@@ssuwandi3240 seems you are on steroids cooll down boy, drink green tea.
China wants to become a great power, an economic and political hotspot for the global south. This will be hard to achieve if trading partners all use USD or EUR and if China itself needs to pay its imports in USD or EUR. However, due to closed capital accounts and a limited offshore yuan market, it's difficult to popularize the Yuan.
For example, one issue is the underdeveloped market. Currently, hedging currency risks against the Yuan is very expensive, as shorting the Yuan is difficult even in international markets. Yet if you're getting paid in Yuan but can't short the Yuan, how can you ensure that your home country's currency won't suddenly appreciate against the Yuan before you're getting paid, thus making the project you're doing for China a net loss in your home currency? That's why most international trade is still conducted in other currencies, despite China being an important manufacturing hub.
I don't think china trying to cares about being on the top of the ranking on the swift system
Good, we support this new global Yuan currency, new generation, new world , kick out old dollar currency
Interesting to see comments openly supporting fascism here
@@Repeal209 like trump, netanyahu, le penn, modi?
Another fiat currency. 😅😂
USD and Yuan have pros and cons. How about EURO? Just looking at France's political/social situation right now to extrapolate entire Europe in the near future where Far Right is truly reaching power.
Support new currency like... bitcoin?
PUMP AND DUMP anyone?
lol
Do the SWIFT Yuan trade figures include trade done using the swop lines that China has with many countries?
how to carry out the percentage of one currency global payment? I mean, not all transaction are based on SWIFT.
Stephen Chu's glasses are so baller I had to pause the clip before anything meaningful and first write this comment. I need me those glasses too! But first, I need to impair my eye sight so I'm prescribed glasses.
Are those transactions outside of china?
Did China issue statement officially that they intend to internationalize its Yuan?
Yes. In the statement of government, the report of the central bank, the news from the official medias you can all find the contents about RMB internationalization. Especially after the US uses SWIFT as a weapon to Russia, the news about this became more and more. The threaten of dollar hegemony is pushing China to make more trading agreement without dollar.
Nowdays people are not using swift there are other payment systems to do business
i will never hold the dollar, because it is just toilettpaper they print out all the time.
RMB is used for 90%+ between China Russia trade.
Also been used for major oil trading partners such as Saudi and UAE.
Im not sure how you are counting it.
Pls note this 4.5% figure only come from SWIFT, what if all channels combined
lol buying Russian oil
It s the part that u know. 😅
Many international trades nowadays do not go through the swift system
such as all Russian related business
All the surplus from the trade is converted to dollars. whats the point about internationalizing
8:03 "safety n liquidity are paramount" unless you are russia, iran, venzuela, n.korea...maybe china etc. usd is no longer a reserve currency for many countries.
A country that can control the exchange rate (exchange rate) and participate in globalized commodity production can set the product price to 0 yuan and then participate in the competition.
Yuan using as international currency must go very cautiously and slowly step by step .
Stephen Chiu is wrong on australia and japan that markets reforms in them is not making them attractive. it is because it can absorb only that much. total size of the investment avenue is small relative to US. thats why australia and japan have relatively small share in global reserve. all attributes of reserve currency has to be fulfilled before the size of pie to investment comes upon. thats why australia, japan has less share vis a vis USA
Ever try to spend a RMB note outside China? How about US currency outside the US?
Is this Chiu employed by Bloomberg Intelligence or by CCP? I noticed he said “We” when talking about China.
WE are Chinese.
@@tonglu3699 who cares… but Bloomberg better protects its properties.
@@SoYappy if you really don't, you wouldn't have been listening so attentively.
@@SoYappy He provided a whole lot of information in this interview and yet the only thing you choose to comment on is his choice of pronoun - you care, obviously.
Chiu is like those who only did finance and kept talking about reserves as if currency autonomy weren't the Chinese's primary goal.
The professor, focused on macro economics and speaks volumes with clearer words.
Speaking with speed and numbers makes you look high 😅
China need to establish stronger capital and commodity market in China, priced in Yuan. if foreigners can invest in Chinese companies, and can buy and sell commodities in China in Yuan, there will be demand for Chinese Yuan, and with demand, there will be saving, thus the currency reserve. China has the opportunity of a lifetime today, with the US going generous in giving out sanctions across the world, particularly in Russia case. Russia is one the biggest commodity producers, and combine that with China, as the world largest manufacturer and trader, Yuan have two important pillars to support it.
Yes BUT China has a long way to go on the matter. My company is the rare few commodities trader who takes payment in RMB starting pretty much right after Ukraine invasion and the Russian asset freeze. The downside is all the index prices around the world is all USD denominated in the commodities we sell to China so our FOREX risk has increased significantly. This move isn’t pro or anti anything but rather a Risk Management move which can also be seen as liquid asset diversification move. The risk of losing contracts is more than enough to justify a willingness to accept RMB payments.
Foreigners already can invest in China. My father was majority shareholder in a factory JV with a Chinese municipality that started operations in 1989.
@@WarrenKLiu
indeed China still has a long way to go, after all Rome is not built in one day. China also need to attract more foreign traders and investors to trade in Chinese commodity and capital market.
In what currencies does China make loans (and demand repayment in)? What currencies do they accept for their exports?
Ironically enough, the answer is "the currencies that rational market actors demand" and RMB is not high on that list.
What a shame that Beijing cannot simply command international investors to hold the RMB in high value. That's the only thing Xi understands.
US dollars as the reserved currency for now, in the next few years when the US faces a major recession, the likelihood of the dollar will depreciate sharply is very likely, majority of investors and traders will run to safety, that's when the Yuan MAY gain acceptance as the Reserved currency. I don't know whether China's political elites would like that to happen.
Those graphs are misleading.
Yeah,He is right. Need reforms either economic or political
4% in SWIFT is good?
How many people are using the YUAN as a RESERVE CURRENCY......
I'm in Uganda and have a DOLLAR & EURO bank accounts i buy stuff from CHINA and mostly pay in DOLLARS ...
Very interesting, I don't see this happening, the currency in China becoming globalized, but i think it will be good for hedging purposes.
World is not derisking. Its the west only 12%.
Is this the china show again? Why is the show not ended yet 😂
over 20 years in the united states and an italian accent that's still that thick is a little suspicious. Must be a part a of his personality at this point
The problem with western economic analysis is its wall street view of everything. Which means its analysis is illogical like its Russian sanctions.
I wonder if the analyst don't actually understand economic principles or they just want to support some narrative.
The concept of a reserve currency is based on trade. You keep the currency you can use in trade. The existing savings and inertia in practices will see the USD as a reserve currency falling slowly.
The real problem with RMB is its lack of it, China run a 800billion surplus. If it wants the RMB to see more use, it will have to loan out RMB to the world or run a trade deficit, because nobody will have much surplus of it to save.
Dollar at 47% of transactions is crazy!
the currency market is 90% speculations with 10 % real transactions.
so No , not the traditional float of currency.
so far, ONLY THE US talking about Yuan as reserve currency.
NO one is saying that in China nor around the world.
Interestingly all the US moves are making Yuan look like an alternative.
Trough BRICS China is trying to create, together with Russia, alternatives for the US dominated financial system. We'll have to wait to see how that works out.
DCEP! Everyone ask your Governor/ MP for your interest-bearing account-based central bank digital currency, so we the people can leverage capital to work for the interests of common individuals.
Why would one want to hold Monopoly money
for 40 years, always, China everyday. *why so scared if they so bad*???
China faces additional challenge along with capital control, convertibility and more investment avenues along with safety and liquidity. Countries with reserve currency must run deficit not surplus because only surplus countries can buy reserves of deficit countries. if china runs surplus, it has the money and has to buy other currencies. other countries will not have money to buy chinese yuan. So before yuan wants to be reserve currency, it has to change the economic model.
chiu made a good point, politics come before economics. so for now, yuan is taking a bigger share.
@@bigupnewyork good point on the margin. but most of reserve flows act on safety. reserve means excess which you can readily use in a crisis or need. if it cannot be readily used, it cannot be a reserve. when you cannot take out your money, no one will save in yuan. eg if you have some money in savings account. but you cannot take money from that account, you will not save money in that bank forever. depositing money in chinese bank is very similar. you can bring money but you cannot take out. then whats the use of that reserve?
I'm sorry I will never hold a yuan dollar in my hands.
Who asked u
I don't know if bloomberg is stupid or pretending to be stupid or assume their entire audience is stupid.
The CNY had already surpass the pound and Euro in trade if U take into account transaction via CIPS (China's equivalent to SWIFT). The Russian China trade doesn't go through SWIFT. When the Saudis price oil in RMB and the world de dollarize it will soon be in parity with the dollar.
China has new energy (clean energy) and Russia has old energy (fossil energy). They may work together to raise energy prices in other countries in order to maintain their own manufacturing advantages!
😂😂😂GOD BLESS CHINA
1 Yuan = 100 Tofus.
Tofu is expensive in the USD. Sounds like a value!!!!
whyo you look eveey thing according to your prospective and your way,your way of finance and the Chinese finance is totally different,the Chinese are smarter them you think with a 1000 years of trading civilization, listen,the Chinese will never allowed their currency to free excess by the world, instead it will be strictly control and uses only to country who trade with China only,if chinna allowed their currency to free in the international market the US will suck the Chinese currency aa much as they can dor 10 to 15 years and rise the value of Chinese currency,but after 10 to 15 years the US will dump the Chinese currency and destroy the Chinese economy.if i know how the US play as a common men the Chinese govt perfectly know how the US will do.
love the performance of these 2 hosts, always ask a question to the point, good job!
Typical. Can’t say Yuan is increasing importance in trade, there always but. 😂😂😂😂
WED
swift？？Taylor Swift🤔
Thats why russia is annoyed. lol
EMU
THU
Philippines dont want use renminbi only US dollar ..
@@paulferrer3578 this is why your country was #1 in Asia after WW2 and now it's at the bottom.
Enjoy being a colony.
since when pinoy is relevant in world arena? not even asean 😂😂😂
Argentina as well
Yes everyone already know you’re a US puppy, don’t have to keep telling people 😂🤣
@@cshan5424Argentina is still excepting RMB for their exports to China 😂🤣
UBS
To me the RMB seems unstable under the current issues 🇨🇳 is dealing with
Not going to trust you . China is best nation
Total BS….money doesn’t give a crap about “freedom”
CCP:"IT'S MY TIME TO DO MODERN COLONIZATION"
USA #1
🤣🤣🤣🤣
At borrowing 1 trillion every 100 days....
Don't wake up....
@@DW-op7ly 😂😂 these babies don't now USA borrow money to pay interest
So what? Still the largest oil producer👍✌️