snoop1130 Posted May 11, 2023 Share Posted May 11, 2023 Image courtesy of Bangkok Post The Bank of Thailand (BoT) plans to ease regulations on the use of China’s yuan for trade this year, aiming to mitigate the effects of currency volatility, according to BoT Deputy Governor Mathee Supapongse. Ongoing discussions between the central bank and its Chinese counterpart are focused on promoting the usage of the Chinese currency. China is a significant trade partner for Thailand, but transactions in local currencies remain limited. Mathee assured there would not be any issues with the availability of yuan for trade settlements, as both countries have a currency swap arrangement in place. Full Story: https://thethaiger.com/news/business/bank-of-thailand-to-relax-rules-on-chinese-yuan-use-for-trade-this-year -- © Copyright Thaiger 2023-05-11 - Cigna offers a range of visa-compliant plans that meet the minimum requirement of medical treatment, including COVID-19, up to THB 3m. For more information on all expat health insurance plans click here. The most versatile and flexible rental investment and holiday home solution in Thailand - click for more information. Link to comment Share on other sites More sharing options...
Thingamabob Posted May 11, 2023 Share Posted May 11, 2023 China's grip on Thailand is getting firmer every day. It can only be hoped that the Thais middle-of-the-road approach to international relations, which has mostly served it well over the years, will be maintained. 1 Link to comment Share on other sites More sharing options...
nigelforbes Posted May 11, 2023 Share Posted May 11, 2023 There is nothing new here, it's an extention of the RCEP agreement and the existing currency swaps, all aimed at avoiding USD settlement of export bills. https://www.aseanbriefing.com/news/how-will-the-rcep-impact-thailands-economy/ Link to comment Share on other sites More sharing options...
CartagenaWarlock Posted May 11, 2023 Share Posted May 11, 2023 Lots of countries are at least willing to pay partially in Yuan to settle their transactions. Nothing new. Link to comment Share on other sites More sharing options...
Sharp Posted May 11, 2023 Share Posted May 11, 2023 BRICS + 1 1 Link to comment Share on other sites More sharing options...
RichardColeman Posted May 12, 2023 Share Posted May 12, 2023 Bye bye petro-dollar, welcome to USA super inflation and the real world 1 1 Link to comment Share on other sites More sharing options...
h90 Posted May 12, 2023 Share Posted May 12, 2023 Good news, I hope it will reduce our costs of transfer money to China. Link to comment Share on other sites More sharing options...
Popular Post h90 Posted May 12, 2023 Popular Post Share Posted May 12, 2023 Just now, RichardColeman said: Bye bye petro-dollar, welcome to USA super inflation and the real world And end of endless wars as they won't be able to finance it anymore 1 2 1 Link to comment Share on other sites More sharing options...
hotchilli Posted May 12, 2023 Share Posted May 12, 2023 The Yuan is getting ready to take over the mighty Dollar. 2 Link to comment Share on other sites More sharing options...
John Drake Posted May 12, 2023 Share Posted May 12, 2023 Yuan? Reserve currency? Don't think so. https://threadreaderapp.com/thread/1655210890470277122.html 1 Link to comment Share on other sites More sharing options...
John Drake Posted May 12, 2023 Share Posted May 12, 2023 This is what happens when countries don't trade in US dollars. https://finance.yahoo.com/news/russia-says-theres-problem-billions-014447565.html 1 1 Link to comment Share on other sites More sharing options...
BusyB Posted May 12, 2023 Share Posted May 12, 2023 21 hours ago, nigelforbes said: There is nothing new here, it's an extention of the RCEP agreement and the existing currency swaps, all aimed at avoiding USD settlement of export bills. https://www.aseanbriefing.com/news/how-will-the-rcep-impact-thailands-economy/ ... itself aimed at reducing the effects of potential US sanctions against China in future. China is pursuing this policy hard now. But the volumes involved are still only a few percent. Thailand is not the only country on board. Link to comment Share on other sites More sharing options...
dinsdale Posted May 12, 2023 Share Posted May 12, 2023 Will this make these cheaper? Link to comment Share on other sites More sharing options...
h90 Posted May 12, 2023 Share Posted May 12, 2023 59 minutes ago, John Drake said: This is what happens when countries don't trade in US dollars. https://finance.yahoo.com/news/russia-says-theres-problem-billions-014447565.html yes rupee maybe not such a good idea, but the risk that someone has too many Yuan is not high as China is a big exporter. Or you could trade in gold (not transporting it in real of course, just on paper). Or you could create a new currency like the Euro...than you can print money for 20 years till everyone find out that it is fraud. Link to comment Share on other sites More sharing options...
John Drake Posted May 12, 2023 Share Posted May 12, 2023 1 minute ago, h90 said: yes rupee maybe not such a good idea, but the risk that someone has too many Yuan is not high as China is a big exporter. Or you could trade in gold (not transporting it in real of course, just on paper). Or you could create a new currency like the Euro...than you can print money for 20 years till everyone find out that it is fraud. Will China finance foreign debt denominated in Yuan? That's what they'll need to do. Build up a credit and liquidity pool to rival that of the US. And do it behind a manipulated currency with no transparency. I just don't see an alternative to the dollar, unless people want to go back to trade and barter. 1 Link to comment Share on other sites More sharing options...
h90 Posted May 12, 2023 Share Posted May 12, 2023 19 minutes ago, John Drake said: Will China finance foreign debt denominated in Yuan? That's what they'll need to do. Build up a credit and liquidity pool to rival that of the US. And do it behind a manipulated currency with no transparency. I just don't see an alternative to the dollar, unless people want to go back to trade and barter. I think there won't be any fast change, just a slow move into multi currency trade.....Sure many countries want to weaken the Dollar. Link to comment Share on other sites More sharing options...
nigelforbes Posted May 12, 2023 Share Posted May 12, 2023 1 hour ago, BusyB said: ... itself aimed at reducing the effects of potential US sanctions against China in future. China is pursuing this policy hard now. But the volumes involved are still only a few percent. Thailand is not the only country on board. The volumes are becomming significant, RCEP trade represents over 60% of Thailand's exports, from the link above: "Thailand’s trade with RCEP countries from 2016 to 2019 was worth US$269 billion per year, or about 60 percent of the country’s total trade". 1 Link to comment Share on other sites More sharing options...
natway09 Posted May 12, 2023 Share Posted May 12, 2023 Traded in Euro about 10 years ago with China ( both LL Companys )as the USD at the time just too volatile Worked well for both parties. Could never work out why always had to make invoices & transfer in USD when doing business on the other side of the world & neither party was American. It will be interesting to see what the "big 5 Thai bank" bosses response will be Link to comment Share on other sites More sharing options...
nigelforbes Posted May 12, 2023 Share Posted May 12, 2023 1 hour ago, natway09 said: Traded in Euro about 10 years ago with China ( both LL Companys )as the USD at the time just too volatile Worked well for both parties. Could never work out why always had to make invoices & transfer in USD when doing business on the other side of the world & neither party was American. It will be interesting to see what the "big 5 Thai bank" bosses response will be Because USD has long been the common currency that all trade bills are settled in, it's a neutral currency that let both parties accurately define their financial halves of the deal, when two other end currencies were being used (buy/sell). If one party is selling goods priced in shekels and the other party is buying in peso's, converting both to USD normalises the financials to a common denominator. Link to comment Share on other sites More sharing options...
jacko45k Posted May 12, 2023 Share Posted May 12, 2023 15 hours ago, John Drake said: This is what happens when countries don't trade in US dollars. https://finance.yahoo.com/news/russia-says-theres-problem-billions-014447565.html Well behind every raincloud....... perhaps drive the Rupee down and limit tourism...... Link to comment Share on other sites More sharing options...
BusyB Posted May 13, 2023 Share Posted May 13, 2023 (edited) 21 hours ago, nigelforbes said: The volumes are becomming significant, RCEP trade represents over 60% of Thailand's exports, from the link above: "Thailand’s trade with RCEP countries from 2016 to 2019 was worth US$269 billion per year, or about 60 percent of the country’s total trade". That doesn't surprise me, but I was referring to the overall figures - global yuan trade vis a vis dollar trade is about 6% as I understand it, even after all these efforts. So Beijing has a long way to go to ease the grief of potential dollar sanctions. They'd also have to convince a lot more countries as well. Thailand was easy. Edited May 13, 2023 by BusyB 1 Link to comment Share on other sites More sharing options...
metisdead Posted May 13, 2023 Share Posted May 13, 2023 A post with a derogatory Australian slang comment toward the USA has been removed. Link to comment Share on other sites More sharing options...
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