China threatens US dollar’s global status

Sunday, March 30, 2014
By Paul Martin

Voiceofrussia.com
30 March 2014

President Xi Jinping’s visit to Germany yielded an unexpected success for the Chinese quest to internationalize the yuan. German Bundesbank announced that it had signed a memorandum of understanding to create a clearing and settlement center for yuan payments in Frankfurt, giving China even more influence on the European trade. Reporters from Businesweek, citing sources from the European financial sector, believe that there were several European competing for the privilege of becoming the European center for yuan-denominated trading.

Angela Merkel convinced the Chinese decision-makers to chose Frankfurt over Paris and Luxembourg. Most probable, the choice was influenced by the fact that Germany is the biggest trade partner of China in Europe with a yearly turnover of more than 140 billion euros. It is obvious that it was only a matter of time until Beijing will try to switch all the trade flows between the European Union and China from US dollars to Chinese yuan. Creating a clearing and settlement center operated by the strongest financial institution of Germany, the Deustche Bundesbank, is a prerequisite for the switch and the memorandum of understanding signed with the People’s Bank of China is the confirmation that all the requirements for getting rid of the dollar in EU-China trade have been met.

The Rest…HERE

Leave a Reply

Join the Revolution - Enter Any Donation Amount Below to Revolution Radio!