Chinese RMB as a reserve currency
November 20th, 2022 | 
Author: 
This is how I see the Chinese RMB becoming a reserve currency:
1. China buys raw materials from other countries and pays in RMB.
2. The exporting country keeps the RMB and use it to pay for products from China.
3. The unused RMB can be kept with the Chinese banking system to earn an attractive interest rate.
4. The RMB can be converted to other currencies, e.g. USD, EUR, JPY, to buy products from other countries.
5. Foreign countries can borrow from China in RMB over several years at the market rate or special rate of interest to build their infrastructure, and repay the loan and interest using their raw material and other exports to China.
6. The RMB and be used in the same way that the USD is now being used. The RMB will become an another reserve currency.
7. The advantage of using RMB is that China is not printing RMB in the same way that American prints the USD to fund their trade deficits. The RMB should be more stable over the long term.
I expect the RMB to become more attractive, as a reserve currency, to other countries over the next few years. The hegemony of the USD will be gone soon.
Tan Kin Lian
Posted in 
IMH 24-hour Mental Health Helpline Tel: 6389 2222
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They can help you (maybe).
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One look at subject title, no prize for guessing.
Muz be TKL.
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Problem is that no country trusts China so who is going to even suggest the RMB as reserve currency? Talking is very easy, doing is another thing altogether.
Textbook Tan is always good for comedy I guess.
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I agree with you, talking is very easy, especially talk cock.
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RMB trading is gathering momentum.
As China progressively entrenched itself as an Open Economy,RMB will definitely be used more to settle international trade.
With more requirement for RMB over time,it will become more and more accepted into the *basket* of Reserve Currencies in more and more Asian countries and subsequently in Africa,ME and later Europe.
U$A will have to follow suit,like it or not.
The MAIN STUMBLING BLOCK to RMB as a Reserve Currency is regulatory issues like FX control.
Once,this impediment is taken care of,RMB will be more important than the JPY.
My humble 2 cents.
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Just ask the 145 countries that joined BRI and those countries that are dumping the US$ and American bonds.
Or you prefer to continue to live in Alice in Wonderland?
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Reminbi will become the most sought after currency soon.
China’s economy will outperform USA in a matter of years,not decades.
Do not look down on it.
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Mr Tan KL is right.
The RMB will be a reserve currency.
The USD will be like the former Japanese banana money.
It is not too difficult to build up a RMB holding. Every month, buy about S$200 of RMB. In a year, the pile will be around 12,000 RMB. In a very short time, if we continue to buy S$200 of RMB, the pile goes up. The gain, finally, from holding RMB is its appreciation. This is sure to happen.
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Mr.Tan both are fiat currencies so please don’t mislead the readers.
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Yawn..Only retarded will think China’s will outperform U$A, in dollar$ we tru$t
Instead, China economy will cra$hed with a loud loud bang soon.
Like this guy below said, China had been dishonest hiding all the bad news from public eyes.
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Fiat currency? What is the big deal? Which country currency is not fiat currency?
How is Tan misleading readers?
Please answer. Don’t run.
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Don’t show your stupidity here. RMB is backed by gold.
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@ SRFR
Well, Hard landing or Soft landing ? Who knows ?
But currently 世界球迷在狂欢，中国球迷做核酸。
China 网红罗永浩 ( former 錘子手機 ) 說：“你说有没有可能，这届世界杯赛事播到一半儿不让播了？毕竟我们有这么多人关在家里，看他们几万甚至几十万人挤在一起狂欢……，难免会产生一些疑问……。” Weibo Censored!
https://twitter.com/jefflijun/status/1594367345694478336
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@Joker
The obvious does not need explanation except for some retards.
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Fiat money?
All exchangeable currencies in the world are FIAT(by faith,legal tender),not backed by any *commodity* like Gold.
Fiat currency allows a country to PRINT MONEY as its G wants as in U$A in recent times.
It is usually accompanied by higher (HIGH) INFLATION which is the case in Mighty U$A.
When many other nations print money,the values of their currencies tended to weaken.
In U$A’s case,IT IS THE OPPOSITE as AMERICUNTS TUA KEE mah?
U$A is even the Bigge$t DEBTOR and U$D shud have weakened by NORMAL STANDARDS.
REFER ASIAN FINANCIAL(CURRENCY) CRISIS.
WHO PUSHED ASIAN COUNTRIES INTO THAT SCENATIO?
ANGMOH TUA KEE Bank$ters n IMF!
WHY IS IMF NONCHALANT WHEN IT COMES TO MIGHTY U$A?
By any logic,RMB shud have strengthen vs U$D,SO TOO MANY OTHER ASIAN CURRENCIES BUT THIS IS NOT THE *NORM*.
The ECONOMICS LAWS we all learn from WESTERN ECONOMISTS seem to be able to BEND AT WHIM AND FANCY???
RULES-BASED?
WHAT ARE THE BASIC RULES OF FAIRNESS,OF LOGIC AND ECONOMICS?
The ANSWER IS BLOWING IN THE WIND like Bob Dylan sang so beautifully.
IMF NEVER EVEN CHASTISE MIGHTY USA THE WAY IT OUT DEMANDS ON THE MONETARY POLICIES OF ASIAN COUNTRIES DURING AFC.
ONLY DR M STOOD FIRM.
For that,we give him respect.
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Instead U$A *EXPORTS* IT (OWN) INFLATION TOCOUNTRIES ALL OVER THE WORLD like COVID spread.
U$A needs to reflect or it will gradually lose respect and regrets.
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Why you run away, like a skunk?
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USD will get weaker down the road…cannot printing USD with no consequence.
Alternative currencies will rise in the future..only logical.
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As both are fiat currencies, the usage is based on trust.China itself buys US dollar debts,it speaks for itself.
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TKL did not say trust in US$ will drop to zero. He says “hegemony of USD will be gone soon.” There is nothing misleading there.
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GBP used to command a much higher percentage in most countries’ basket of reserve currencies.
These days it is much less.
China’s RMB will see increasing importance in the basket of reserve currencies.
So will USD see a smaller percentage going forward.
No doubt more countries will attach greater importance to RMB in their basket of currencies as MORE COUNTRIES CONDUCT THEIR TRADE IN RMB over time China’s economy grow bigger.
Even more smart ANGMOH INVESTORS are looking to China and Asia.
The increasing importance of RMB as a reserve currency cannot be avoided,like it or not.
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If i were tasked to manage our reserves,i would look very seriously into adding more RMB.
This is the trust i have in Asia and what better way to increase my Asian component in my basket than RMB itself?
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Likelihood to see a USD/RMB FORWARD EXCHANGE RATE CLOSER TO 6.5 RMB PER USD THAN TO SEE 8.5,i dare hazard.
Tech: Err… USD/RMB now already way past 7.0 liao lor.
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@Tech
Yes.
I am seeing a *forward*(future) rate of closer to 6.5 first,and later,6 even.
RMB will gradually re-strengthen.
Cheerio.
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The leader of the axis of evil, bully and troublemaker,
as truths gradually revealed and the world awakens,
for releasing the CCP virus to the world,
in no time CCP will be cast into hell as the enemy of humanity.
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”The 50 Cent Party, also known as the 50 Cent Army or wumao (/ˈwuːmaʊ/ WOO-mow), are Internet commentators who are hired by the authorities of the People’s Republic of China to spread information to the benefit of the governing Chinese Communist Party (CCP).[1][2][3][4][5] It was created during the early phases of the Internet’s rollout to the wider public in China.”
The Propaganda continues!
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A new nick from the same American operative.
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This one also likely to be an operative. At the moment testing water.
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