Interesting. Never knew Japan had such low borrowing costs for such a long time….wow.
Renminbi (RMB)/Yuan Appreciation & Internationalization
- Thread starter supercat
- Start date
Russian central bank wants mandatory RMB reserves for lenders.
Russia's central bank wants commercial banks to hold mandatory reserves of yuan to prevent shortages of the Chinese currency in the foreign exchange market and rein in excessive lending, Governor Elvira Nabiullina said on Tuesday.
Interest rates on yuan swaps jumped above 40% in March, driven by heavy yuan lending and reduced inflows of the currency as weak oil prices hit Russia's export earnings early in the year.
The yuan has become Russia's most-traded foreign currency after Western sanctions on many Russian banks and on the Moscow Exchange curtailed dollars and euro trading, pushing it into the over-the-counter market.
Russia's central bank wants commercial banks to hold mandatory reserves of yuan to prevent shortages of the Chinese currency in the foreign exchange market and rein in excessive lending, Governor Elvira Nabiullina said on Tuesday.
Interest rates on yuan swaps jumped above 40% in March, driven by heavy yuan lending and reduced inflows of the currency as weak oil prices hit Russia's export earnings early in the year.
The yuan has become Russia's most-traded foreign currency after Western sanctions on many Russian banks and on the Moscow Exchange curtailed dollars and euro trading, pushing it into the over-the-counter market.
China and US gold trade data show the obvious link that US is directly/indirectly settling trade deficit with China through Gold. Looking at USD/CNY today, I see exchange rate drop to 6.8115. This is lowest since January 2023 when China just opened up post COVID
The fact that RMB is only now reaching 6.8 after a year and half of dumbass maneuvers from the Mango administration is testament to the dollar hegemony’s fundamental strength.
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It went very well. It was heavily oversubscribed.
This is literal madness. 2.5% for a country (no offense to Pakistan) who has been in near-default multiple times, and is still facing loan repayment issues.
China's own government raises at ~1.3%. (Completely risk free rate of return)
This is literal madness, chinese markets need to mature by facing some pain I guess.
Edit: Finally was able to make sense of this issuance. AIIB/ADB jointly have guaranteed 95% of the debt issuance, which coupled with strong ratings for both, makes the coupon rate realistic.