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China to export yuan to BRICS

Published time: March 08, 2012 13:11
Edited time: March 08, 2012 17:11
A 100 yuan banknote (R) and $100 banknote. (Reuters / Petar Kujundzic)

China is reportedly to begin extending loans in yuan to BRICS countries in another step towards internationalizing the national currency and diversifying from the US dollar.

­The Chinese Development Bank wants to sign a memorandum of understanding with the country's partners from BRICS group of developing countries on increasing yuan-denominated loans, while partners increase loans in their national currencies, The Financial Times reports, citing people familiar with the talks.

The move aims to increase trade volumes between the five nations and diversify from using the US dollar.

Brazil and South Africa were quick to react to the proposal, saying they expect the lending pledge to be included into a master agreement to be signed in New Delhi on March 29.

 “We will discuss the creation of structures and mechanisms for lending in local currencies in order to maximize economic and financial transactions between the countries that are members of the accord,” Brazil’s development bank BNDES said.

China, with 54 per cent of its foreign reserves in US dollars, has been trying to diversify from the currency it believes will weaken soon and for a protracted period.

China agreed to use national currencies with Russia, Belarus and Japan for bilateral trade. The country also decreased its foreign reserves in dollars recently in favor of the Australian and Canadian currencies.

Comments (24)

teddyformusic 29.03.2012 05:15

A.Smith wrote in #20
After repeated Zionist led Republican demonization of China via threats,sanctions and media-outlet smears, China is RIGHT in dumping the US Dollar currency and encouraging it's allied partners to do the same.


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i don't know if this makes sense: my observation is that CHINA seems to be MINDFUL of NOT imitating the USA in the USA's self-appointed "role" as "ruler" and "leader" of the planet. what I mean is -- having thousands of years of "experience" on what POWER means - and its LIMITS -- China probably understands that to take on the "global ruler" ROLE without question - as the USA has done -- is NOT a task ANY nation should WISH upon itself, lest it suffer a "responsibility" that NO nation can bear forever or even for any length of time before it cracks under the weight of its own "self-appointment" and arrogance.

SO -- i think that china , knowing that much of its investment is in Dollars, forced upon it by GLOBAL system dictated by the dollar -- can NOT afford to let the USA COLLAPSE by declaring "we are letting go of such and such amount of dollars because the USA is UNdependable" -- and suffer the EFFECTS on china itself if the USA were to collapse with that "dramatic" action. so what china DOES is, begin ti lessen its Dollar "risks": by diversifying BUT gradually letting the USA disembowel itself - while China buys the TIME to "transfer assets" to other currencies or commodities with the minimum loss of value...china attempts, imo, to Strengthen ITS economy and existence by making the moves to STABILIZE itself with the understanding that ITS stability is intertwined with the Stability of ITS trading partners and other countries...but IF the USA INSISTS on DESTABILIZING the world to "maintain and impose" its "leadership" - then china will simply have to continue to shoring up ITS stability as well as that of partners and other countries -- in a PARALLEL road TO the USA's own self-destruction and destabilization Schemes...and that in the end...>CHINA KNOWS which PATH countries and, most importantly, POPULATIONS WILL choose...and it wont' be the USA's "imperial command" . ..which has proven to be the most destabilizing and destructive force on earth ....

+1

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teddyformusic 29.03.2012 04:57

Caz wrote in #17
China can do whatever it wants because the USA is up to its ears in debt to China. China calls the shots now. Get ready for a huge wave of inflation America. No central bank can correctly factor in the tsunami of money that will be heading back into the USA as faith is lost globally in the US dollar. Time for us Americans to get our acts together. The very least we can do is hire Ron Paul as our next president.
== =================
Remember how TIMOTHY GEITHNER -- Obama's Treasury Secretary , and one of the AUTHORS of the Wall Street Scams collapsing and BAIL-OUT -- exporting THAT scam worldwide some more (like to Greece by Goldman Sachs, etc...) --
went to china as Obama's adviser ? basically to persuade China to CONTINUE to buy "US TREASURIES?"..and then in one trip -- he also gave a lecture to university students in economics, etc...the REPORT (but NOT in usa media) online elsewhere was that WHILE he lectured China about banking, currencies, economics, with SUGGESTIONS to China on ":reform" (meaning COPY the USA ) -- the STUDENTS OPENLY LAUGHED at him?

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brianmoloney 13.03.2012 17:41

the SWISS and the GERMANS are ASKING THE NEW YORK FED.. Wheres OUR GOLD?????????  Well WHERE IS IT??? ha ha ha ha. 

+7

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