Thailand and China ditching the dollar

[webfact]

 

Beijing and Bangkok to dedollarize their trade by promoting their national currencies. With CBDCs? What about Bitcoin?

Thailand and China no longer want the dollar

 

The central banks of the two nations signed an agreement this Tuesday aiming to strengthen cooperation to facilitate cross-border settlements in local currencies.

 

Not a month goes by without nations taking steps to bypass the dollar in their bilateral trade. India and Nigeria concluded a similar agreement just last week.

 

Dedollarization is a reality and the Russian president emphasized it again during his recent state visit to China. On this topic, don’t miss our article: Putin cuts a dollar short.

 

Little information has emerged on how the two Asian countries plan to facilitate their trade. We do know, however, that Thailand and China are working together on the mBridge project (multiple CBDC Bridge).

 

Some consider this international CBDC transaction project could break the monopoly of the SWIFT network. The project involves the Bank for International Settlements (BIS) and the central banks of China, Hong Kong, Thailand, and the United Arab Emirates.

 

China is concerned that its economy relies on payment networks controlled by the West. Recall that Iran and Russia were disconnected from the SWIFT network. That is to say, two countries openly hostile to the dollar,

 

Full story: cointribune 2024-05-24

 

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[Keep Right]

China and Thailand are hostile to the dollar because the dollar is one of the strongest currencies in the world. The BAHT has continuously fallen against the dollar since 2020 and is projected to continue to fall this year.

[Tropicalevo]

54 minutes ago, webfact said:

Thailand and China are working together on the mBridge project (multiple CBDC Bridge).

 

Some consider this international CBDC transaction project could break the monopoly of the SWIFT network.

Trust China with my (small amount) money? No thank you.

[StayinThailand2much]

14 minutes ago, Keep Right said:

China and Thailand are hostile to the dollar because the dollar is one of the strongest currencies in the world. 

That's right. Thai logic: 1US$ = 36-37 baht, 1Y = 5 baht, so let's use the yuan instead, because it's a better deal.

 

Perhaps they will buy Chinese gold online next... 😆 

Edited May 24 by StayinThailand2much

[NoDisplayName]

20 minutes ago, StayinThailand2much said:

Perhaps they will buy Chinese gold online next... 😆 

Why not?

 

You can buy gold online on Taobao and have a robot delivery van bring your shiny precious to your home the next morning.

 

Chinese banks are now selling direct online, in addition to selling coins and bars in the lobby.

[Pouatchee]

there we go... taksin's true vision coming through clearly.

 

next he will ditch falangs to some sort of work camp

[Pouatchee]

28 minutes ago, NoDisplayName said:

You can buy gold online on Taobao and have a robot delivery van bring your shiny precious to your home the next morning.

 

and how will you pay for it?

monopoly money?

[retarius]

IF you use the dollar, you are always at risk of having your dollar assets frozen by the west. These is no debate about it, no evidence presented, no international body pontificating on the issue.....the US wills it for good or evil and the west do it. So using the dollar you sacrifice your sovereignty to the US. 

[Mike Lister]

China and Thailand have been using currency swaps to settle cross border trade bills for years, there's nothing new about this whatsoever. But USD remains the settlement currency for global exports, they are not going to see the back of USD for a long long time.

[Chetzee]

no one in their right mind is going to trust the CCP to deal in RMB. when they have a long history of using currency manipulation to prop up their export economy every time the  *hit hits the fan ..... just sayin' !

[Mike Lister]

11 minutes ago, Chetzee said:

no one in their right mind is going to trust the CCP to deal in RMB. when they have a long history of using currency manipulation to prop up their export economy every time the  *hit hits the fan ..... just sayin' !

Signing of the renewal of the Chinese Yuan - Thai Baht Bilateral Currency Swap Arrangement. Local currency exchange transactions under the Agreement are capped at 70 billion yuan ($370 billion) and have a five-year term from December 22, 2020.Jan 8, 2564 BE

 

https://www.bot.or.th/en/news-and-media/news/news-20210108.html#:~:text=Currency Swap Arrangement-,Signing of the renewal of the Chinese Yuan,Baht Bilateral Currency Swap Arrangement&text=Local currency exchange transactions under,term from December 22%2C 2020.

[seajae]

when bangkok bank started usuing chinese cards instead of visa/mastercard they would not be recognized by many other countries, no one trusts china and for good reason, the dollar will always be the prime currency and that just pi**es off china no end. Here we see just how far up chinas bum Thailand is prepared to crawl to satisfy their masters, they accepted a crap chinese engine for the sub now this, it is showing just how pathetic the country is getting

 

[Chetzee]

1 minute ago, Mike Lister said:

Signing of the renewal of the Chinese Yuan - Thai Baht Bilateral Currency Swap Arrangement. Local currency exchange transactions under the Agreement are capped at 70 billion yuan ($370 billion) and have a five-year term from December 22, 2020.Jan 8, 2564 BE

 

https://www.bot.or.th/en/news-and-media/news/news-20210108.html#:~:text=Currency Swap Arrangement-,Signing of the renewal of the Chinese Yuan,Baht Bilateral Currency Swap Arrangement&text=Local currency exchange transactions under,term from December 22%2C 2020.

clues in my post .... no one in their right mind .... 

[Mike Lister]

1 minute ago, seajae said:

when bangkok bank started usuing chinese cards instead of visa/mastercard they would not be recognized by many other countries, no one trusts china and for good reason, the dollar will always be the prime currency and that just pi**es off china no end. Here we see just how far up chinas bum Thailand is prepared to crawl to satisfy their masters, they accepted a crap chinese engine for the sub now this, it is showing just how pathetic the country is getting

 

I disagree. Neither Thailand nor many other countries are happy that their economy and currency is so closely related to USD. When USD weakness and THB strengthens as a result, that generates a current account surplus that the Fed calls currency manipulation, ditto Taiwan, Germany and Switzerland. The solution, according to Washington, is for Thailand to buy more goods from the USA........really!

[Mike Lister]

9 minutes ago, Chetzee said:

clues in my post .... no one in their right mind .... 

That's mildly junior high funny of course, but the reality is that Thailand is a USD 550 bill economy and is right next door to the worlds second largest economy. It's a no brainer that the two countries would grow their trading relationship and deploy currency swaps and try to avoid using USD where ever possible. That's the whole basis of BRICS, to which, many countries in the region have signed up, including Japan, China and Thailand. 

[Chetzee]

8 minutes ago, Mike Lister said:

I disagree. Neither Thailand nor many other countries are happy that their economy and currency is so closely related to USD. When USD weakness and THB strengthens as a result, that generates a current account surplus that the Fed calls currency manipulation, ditto Taiwan, Germany and Switzerland. The solution, according to Washington, is for Thailand to buy more goods from the USA........really!

out of interest Mike .... how do you account for the fact that when global events happen .... how come the flight is to gold and the US$  and not to RMB ?

 

[Mike Lister]

An interesting article on currency manipulation, if nothing else, look at the table.

 

https://www.cfr.org/article/tracking-currency-manipulation

[Mike Lister]

Just now, Chetzee said:

out of interest Mike .... how do you account for the fact that when global events happen .... how come the flight is to gold and the US$  and not to RMB ?

 

RMB was never going to be a safe haven currency whilst the Chinese economy is n the state its in and everyone understands that. The only remaining choices for safe haven are gold and USD, and other prime currencies....TODAY. Tomorrow is very likely to be a different picture entirely. 

[ikke1959]

Same as the cannabis.. First speak and do and than think and when the big problems occur, it was a misunderstanding... How can they do business with all countries if they only keep their own currencies

[Liverpool Lou]

2 hours ago, StayinThailand2much said:

That's right. Thai logic: 1US$ = 36-37 baht, 1Y = 5 baht, so let's use the yuan instead, because it's a better deal.

No, that's wrong, that was your logic.

[Mike Lister]

1 hour ago, retarius said:

IF you use the dollar, you are always at risk of having your dollar assets frozen by the west. These is no debate about it, no evidence presented, no international body pontificating on the issue.....the US wills it for good or evil and the west do it. So using the dollar you sacrifice your sovereignty to the US. 

Exactly. Which is why China has been on a gold buying spree, because they don't want to be embargoed by the US and have their USD assets at risk, the next time they misbehave. Think Taiwan, think South China Sea.

[Guderian]

The Thais are such a bunch of moneygrubbers that they'd grovel for Zimbabwe dollars, never mind the US ones, lol.

[hotchilli]

3 hours ago, Pouatchee said:

next he will ditch falangs to some sort of work camp

Work camp, no-way... I'll head east a bit further.

[hotchilli]

2 hours ago, Mike Lister said:

Exactly. Which is why China has been on a gold buying spree, because they don't want to be embargoed by the US and have their USD assets at risk, the next time they misbehave. Think Taiwan, think South China Sea.

In some ways China is very smart... like them or hate them.

[topt]

2 hours ago, Mike Lister said:

That's the whole basis of BRICS, to which, many countries in the region have signed up, including Japan, China and Thailand. 

I am presuming that Japan is a "typo".......

Quote

Vietnam's potential bid for BRICS membership aligns with a broader trend of countries expressing interest in joining the group. Several nations, including Venezuela, Thailand, Senegal, Cuba, Kazakhstan, Belarus, Bahrain, and Pakistan, have already submitted formal applications or expressed their desire to become members.

https://infobrics.org/post/41048

 

Unless you were just referring to currency swaps?

[AhFarangJa]

28 minutes ago, hotchilli said:

Work camp, no-way... I'll head east a bit further.

I have already started investigations about Cambodia, only 35 km. from me.

[Sticky Rice Balls]

they seem to have NO problem taking my dollars at any exchange shop.......and I think the article is BS

[Sticky Rice Balls]

56 minutes ago, Guderian said:

The Thais are such a bunch of moneygrubbers that they'd grovel for Zimbabwe dollars, never mind the US ones, lol.

im gonna try this out today at all the hawkers and massage girls on my bike ride...sorry baby your country doesnt want my USD anymore  solly!

Edited May 24 by Sticky Rice Balls

[BritScot]

4 hours ago, NoDisplayName said:

Why not?

 

You can buy gold online on Taobao and have a robot delivery van bring your shiny precious to your home the next morning.

 

Chinese banks are now selling direct online, in addition to selling coins and bars in the lobby.

You are a brave man. China is the capital of fake and you would risk buying gold from there. Just watched a YouTube of a Chinese woman cutting her gold bar to find a silver core. When you buy gold you buy from reputable supply countries. Swiss, UK, Canada, USA etc Germany is also trusted as is Australia. China = fake: rice, eggs,  meat even noodles.  They have also saturated the pharmacy industry with fake medicines including life saving medicines which havedirectly caused peopleto die.  Good luck with China. 

[Mike Lister]

23 minutes ago, topt said:

I am presuming that Japan is a "typo".......

https://infobrics.org/post/41048

 

Unless you were just referring to currency swaps?

Thanks, yes, that's me getting my wires crossed.

 

There are several new trading blocks being established, BRICS is just one of them which of course cannot include Japan because it is a G7 country. But Japan is a member of the fairly new, Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP) which includes New Zealand, Australia, Brunei, Canada, Chile, Malaysia, Mexico, Peru, Singapore and Vietnam. The new trade group that I had in mind earlier when I mentioned Japan is RCEP which comprises 12 regional economies and Japan, China, s. Korea and ASEAN countries. The aim of most of them, especially RCEP, is to avoid using USD ion trade bill settlement.

 

https://en.wikipedia.org/wiki/Regional_Comprehensive_Economic_Partnership

 

https://accesspartnership.com/asia-for-asia-the-future-of-regional-trade/

 

https://www.voanews.com/a/britain-joins-asia-pacific-trade-group-that-includes-japan-/7183030.html