with John Rubino & Gordon T Long
Published 04-20-15
35 Minute Video
It Begins!
John Rubino and Gordon T Long discuss the status of global De-Dollarization within the context of three developing macro events:
- The Asian Infrastructure Investment Bank (Aiib) "Mutiny"
- Putin's Eurasia Currency Proposal
- Mounting Petrodollar Mercantilism Pressures
It is clear from insiders that:
"China plans to push for yuan to take prominence in loans under the Asian Infrastructure Investment Bank and the Silk Road Fund. China may encourage $100b AIIB and $40b Silk Road Fund to issue loans directly in yuan or set up yuan-denominated funds under the two institutions. This is according to the people, who ask not to be identified because deliberations are private."
The South China Morning Post specifically reports:
Beijing will push for the yuan to be included in a basket of currencies used to denominate and settle loans from the Chinese-led Asian Infrastructure Investment Bank (AIIB), according to think tank sources.
Beijing will also encourage the AIIB and the Silk Road Fund to set up special currency funds and issue yuan-denominated loans through both institutions, the sources said.
If the US dollar is used, it weakens China's bid for the yuan to be a global currency.
The efforts are part of a drive to internationalize the Chinese currency and come as the International Monetary Fund prepares to discuss the possible inclusion of the yuan as its fifth reserve currency and as part of the basket that forms the IMF's Special Drawing Rights.
The sources' claims appeared to be confirmed by a state media report, which said that a basket of currencies called the "AIIB CURRENCY" would most likely be adopted as the bank's currency of settlement...
Hao Hong, chief economist and managing director of research at Bocom International, said - China should do its best to establish the yuan as a currency for settlement and denomination.
Putin's Eurasia Currency Proposal
"The time has come to start thinking about forming a currency union," Mr Putin
The EEU is an economic union which comprises Russia, Belarus, Kazakhstan and Armenia. Kyrgyzstan is also set to join the bloc.
Video: Mounting Petrodollar Mercantilism Pressures
with John Rubino & Gordon T Long
Published 04-20-15
35 Minute Video
