Monday, April 01, 2013

Australia to Embrace China’s Yuan

Australia may use China’s Yuan more for international trade and finance than the US dollar.

BUSINESS groups and economists have welcomed the prospect of direct convertibility of the Australian dollar and Chinese yuan, which would cut foreign exchange costs and bolster Australia's growing trade with China.

The Coalition also said yesterday it supported a proposal by Julia Gillard, revealed in The Weekend Australian, to secure the currency deal with the Chinese.

The Prime Minister is expected to put forward the plan, to make the Australian dollar and Chinese yuan freely convertible, when she visits China this weekend, an outcome that would save Australian and Chinese businesses from having to deal in US dollars or Japanese yen when trading with each other.

Greg Evans, director of policy at the Australian Chamber of Commerce and Industry, said "direct convertibility is expected to provide a practical business benefit for both small and large companies doing business with China". He said closer currency arrangements made sense as trade with China, which exceeded $120 billion last year, continued to grow…

Australia would become the third country, after the US and Japan, to secure such an arrangement from China, for which Australia is the fifth-biggest source of imports.

At present, companies doing business with China must pay the added cost of converting their Australian dollars into US dollars or yen, and then again from there into yuan. Fortescue director and former Australian ambassador to China Geoff Raby has called for Australia to become more involved in the internationalisation of the yuan and to make Sydney a trading centre for the currency.
Internationalization or convertibility of the yuan would require more trade, finance and currency/capital liberalization, factors which China’s government needs to address than just via bilateral agreements.

Nonetheless, Australia’s move to embrace the yuan serves as writing on the wall for the US dollar standard.

1 comment:

thediktatreporter said...

The paradigm of sovereign nation states has supported the Milton Friedman Free To Choose floating Currency Regime, where Major world Currencies, DBV, and Emerging Market Currencies, CEW, have floated and the US Dollar, $USD, have sunk, is now history.


The US Dollar, $USD, traded by the 200% ETF, UUP, is rising and it no longer serves as the world’s international reserve currency. That’s right, there is now no international reserve currency.


The world’s Fiat Money System, that has underwritten corporate profitability, global growth and trade since 1971, when the world went off the gold standard, is literally disintegrating.


Jesus Christ is bringing forth the new paradigm of regionalism, based upon the sovereignty of regional leaders and regional bodies, where the Diktat Money System, will underwrite regional security, stability and sustainability.



As of the week ending March 28, 2013, the world existed at the very pivot of two eras. Jesus Christ is now transitioning the world from Liberalism into Authoritarianism.



To achieve His aim of producing the Beast Regime of Diktat to replace the Banker Regime of Investment Choice, which will rule in all of the world’s ten regions and to occupy in all of mankind’s seven institutions, Revelation 13:1-4, as well as to produce the Ten Toed Kingdom of Regional Governance, Daniel 2:25-24, Jesus Christ has released the First Horseman of the Apocalypse, that is the Rider on the White Horse, who has a bow but no arrows, Revelation 6:1-2, to effect global economic and political coup d etat. This rider is seen having great success in Argentina, ARGT, with Kirchnerism, in Egypt, EGPT, with Morsi’s rise to power, and in Greece, GREK, with the Troika’s technocratic rule, and with Cyprus, having been mandated with a Deposits Levy and Capital Controls. Greece and Cyprus are no longer a sovereign nations; they are vassal colonial states, ruled by bankers and oligarchs residing in Brussels, and Berlin. The Greeks and Cypriots rely totally for the provision of their fiscal needs upon the regional sovereignty of the ECB.


The First Horseman of The Apocalypse, Revelation 6:1-2, has taken sovereignty that is rulership from Italy; it exists as a country having no head, that is no rule, no government. Italy is no longer a democracy, rather it is a zombie state existing governed by Christ’s First Henchman, and whose fiscal needs are provided courtesy of Mario Draghi and the monetary authority of the European Central Bank. And now, via the First Horseman, Jordan Shilton and Chris Mardsen of WSWS write Cyprus to face savage cuts and economic dictatorship.