Chinese Economics Thread
- Thread starter Norfolk
- Start date
I cannot find any news on this Saudi accepting RMB. Any reference?
Check out @LukeGromen on twitter. Its not written down directly anywhere, but concluded through discrepancies in Saudi data.
The Success of the Global Economy is in the hands of ALL nations, without exception. There can be disagreements on Trade & Investments between countries, BUT these have to be solved expeditiously and satisfactorily, WITHOUT trade wars and national self-interests. Regretfully, domestic politics have influenced foreign policies. These coupled with Covid-19 Pandemic and the display of Military Might, influenced Economic Policies on Trade & Investments. Time for leaders of nations to re-consider whether what they implement are for the benefit of their people, OR is it for their own Personal/Party political agendas.
This is very interesting.
It makes sense for Saudi Arabia to settle oil trade in RMB instead of the US Dollar.
Of course, I doubt we'll see this announced officially by either China or Saudi.
bajingan
Senior Member
An article from scmp mentions that the us could cut off access to credit card services especially master cards, visa, amex by denying swift services to a specific bank or to any of its 200 participating countries
How likely will the us take this extreme measure? Will it not doom the us dollar were it to happen?
AssassinsMace
Lieutenant General
Then why does the US continually whine about it?
It's agitprop for pushing a decoupling agenda. Even if it isn't true, the talking point is catchy and resonates well with ppl.
China is expanding her DCEP test to heavy commercial use, opening up its usage to Yangtze delta including Shanghai and Beijing, and Bay area, which means HK as well.
As usual, Bloomberg article has error. DCEP has anonymity at end user level - it is designed as the digital version of M0.
As usual, Bloomberg article has error. DCEP has anonymity at end user level - it is designed as the digital version of M0.
If this would go through, this would be actually a win for local digital payments - Octopus, alipay, tencent pay all others and local merchants. Every Visa/master transaction, almost 3% goes to the banks, visa corp.
In comparison to Tencent Pay or Alipay which is at 0.6 %
.
or Octopus which is max at 1.5%. (I knew octopus very well because one of my projects before involved settlement processing with octopus).
The losers will be visa/master card and all the issuing banks. The winners will be the merchants and consumers (prices can be lowered to maybe 2 %).
Thats why VISA/mastercard hates so much the Alipay/Tencent pay model. Think of it if it will multiply to whole world.
They are getting billions just for settlement processing fee alone.
Side note:
The DCEP will be the natural counter to the Alipay and Tencent Pay behemoths. The Chinese government probably see that they cant let these two to have so much financial power. So maybe 5 years from now Alipay and Tencent pay will have only minority share in settlement processing if DCEP is fully rolled out.