BUENOS AIRES -- Argentine officials are hopeful that a new currency swap deal with China will bolster confidence in the peso while giving the monetary authority greater power to defend the currency.
"This should boost confidence," said an Argentine Central Bank official who asked for anonymity. "Even if none of this money is ever used, its mere existence should serve to boost confidence in the currency."
The two nations agreed to a three-year currency swap totaling 70 billion yuan, ($10 billion).
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This message has been edited by BigFatPandaBear on Mar 31, 2009 4:49 AM
A dollar swap would be assistance. This kind of useless in the short-medium term. As there's zero demand for chinese currency in this country, pretty much the same as for argentine currency in China. It's a nice political gesture though, and it might boost confidence.
It's has more to do with China's strategy to make the yuan more international than anything specific to Argentina. Maybe they're considering making it fully convertible.
zero demand? No! Chinese currency could be the most stable one or have big potential in value. When US and Brats are busy printing bills, everyone wants to get rid of their bills.
A convertible Yuan ? that would be the best news since a while.
it's almost certain to gain at least 100% in less than one year, you Chinese are going to get rich, lucky you
.. but well it's not done yet
China had currency swaps treaties with these countries and areas after the American Crisis:
Argentina (70 billion RMB)
Malaysia (80 billion RMB)
Belarus (20 billion RMB)
Indonesia (100 billion RMB)
S. Korea (180 billion RMB)
Hong Kong (200 billion RMB)
total of 650 billion rmb or around US$100 billion, only 5% of China's forex.
yeah right....why does the chicom need russian help? Remember oil at 45 a barrel and you got pretty much nothing else? rumor has it that russian women are flooding the market again....
no shiiit, you phucks are dying from drinking vodka faster than you think so your population is dropping like flies. no wonder your women prefer foreign money to any drunk phuck like you.... keep sucking our cock, we will loan you another dollar tomorrow.
lol, how many chicoms have to sell their kindeys to make that dollar? 5 or more?
Dont feel bad though, while your women are running around after "whitie", other chicoms can get another worthless degree from a chicom "college". How old is chicomland? And its still a 3rd world sh1thole? Ownage of the millenium.
what's with our education? why is that even in this conversation? is it because you are bitter studying in a place in the middle of no where, like Idaho or sth? I can understand the level of stress you are under because you probably haven't seen a woman for months in that freezing shiithole.
BTW, russian women are a dollar a bucket and Putin just sucked Hu's dick at the G20 and Hu might just give Putin another dollar.
I finally understand the opium epidemic in chicom land, the chicom men had to forget about the ugly whores they were fvcking and chicom women had to forget about the 2in d1cks of chicom men.
Dont worry though, dirty chicom whores arent wanted anywhere in the world, even at 2 dollars a pop. I guess they have to go even lower to get an equalibrium in the supply and demand thing. Perhaps $1?
hehe, looks like your lack of contact with women has finally got to you. Try to get out the hellhole you are in....It's good for your health, which russian men usually don't have and die before they reach 60....Africans live longer than russians....
Russia is hopeless, women are whoring themselves around the world for a dollar a bucket and men are dying before they reach 60.
""""""""""Degree from chicomland is WORTHLESS""""""""""
Coming from a ruski whore that is funny.
a former engineer, a former teacher and several former military men are working as gypsy cab drivers LMAO.
Not even a Russian degree is worth anything in Russia itself
"""""""Outside the market's entrance sits a different group of men who are playing cards and grousing. They are Russians working as gypsy cab drivers -- men who once had it better. There is a former engineer, a former teacher and several former military men. """"""""
"""""""""""and 50% living on less than $2 a day(PPP)"""""""""
LMAO ROFL HAHAHAHAHHAHA
No wonder Russian education is not worth a cent.
6,100 per year divided by 365 is $16.71 a day which will allow you to live in China considering the cheap fun, cheap or non-existant rent and basically electically cheaper than freebies.
"""""""""""""Hell, any remote village in Russia is like paradise to chicoms""""""""""""
This is what a ruski whore has to say. One who is actually living in Russia
"""""""""""''Look over there,'' said Irina Guiman, a 28-year-old candy factory employee whose last paycheck surfaced six months ago. She waved her hand at the sparkling new skyline across the river in the Chinese city of Heihe, bursting with new high-rise buildings, which she like many others believes were built with the money Chinese traders take back with them from Russia.
''And look at this,'' she said, turning back toward Lenin Square, surrounded by grimy Soviet-era structures. ''We're still the same dirty old village we always were.''"""""
This is what I was talking about before, China's is paving the way to make the yuan fully convertible.
OPINION ASIA
APRIL 5, 2009, 7:43 P.M. ET
China's Yuan Ambitions
Currency swap agreements are part of a larger plan to extend the Chinese currency's role in global trade.
By BEN SIMPFENDORFER | From today's Wall Street Journal Asia.
China is playing a growing role in discussions over solutions to current economic problems. Much of the talk has focused on money -- whether Premier Wen Jiabao's concerns about the value of China's U.S. treasury investments, or the People's Bank of China's paper floating the idea of a de-dollarized international monetary system. Up to now, one limit to China's ability to contribute to global monetary reform has been its own currency policy, particularly the fact that the yuan is not convertible. However, now there are tentative signs that's starting to change.
Beijing has signed currency swap agreements with six central banks: Hong Kong, Indonesia, Korea, Malaysia, Belarus and most recently Argentina. These swaps permit those central banks to sell yuan to local importers in those countries who want to buy Chinese goods. This is particularly useful for importers struggling to obtain trade finance as a result of the financial crisis. As such, it's consistent with China's desire to participate in the Group of 20's efforts to support trade financing.
China has long wanted its currency to play a more important role in the global financial system. These swap arrangements come in the context of that broader policy aim. The broader policy goal also has a more practical function in reducing currency exposure and transaction costs for Chinese exporters. The rise in the yuan's value relative to the dollar in early 2008 was a reason why some Chinese exporters went bankrupt. The ability to settle trade in yuan would reduce this risk in the future.
Certainly the swaps should not be mistaken for full yuan convertibility. Details are scarce, but it appears the yuan cannot be sold for other currencies, in particular, the dollar. Neither can they be used by the other countries as part of their reserves to defend their own currencies, unlike the recent swap agreements several countries have signed with the United States Federal Reserve. In large part this is because the yuan is not fully convertible. Hong Kong remains the only place where it is possible to open yuan deposit accounts, and even there daily deposits and withdrawals are capped.
Yet while the swap arrangements do not signal full convertibility, they are an important step in that direction. Even better, the Chinese authorities appear to have accelerated the reform schedule in recent months to suggest that the prospect of partial convertibility, especially between China and its major regional trading partners, may be closer than many believe.
China's State Council announced its intention in December to permit businesses in specific provinces to settle international trade-related transactions in yuan with specific trading partners. Guangdong province can settle in yuan with Hong Kong and Macau, while Guangxi and Yunnan provinces can settle in yuan with members of the Association of Southeast Asian Nations.
These are trial schemes that have yet to start, and it is still unclear how they will differ in practice from the swap agreements already in place. Hong Kong's experiments with yuan convertibility will be the most important to watch. China has a tendency to use the territory as a laboratory for financial reforms. So, the State Council's clarification on the yuan-settlement trial scheme in Hong Kong, expected soon, and the response of Hong Kong's business community, will be a good indicator of what the rest of the world can expect.
The transformation of the yuan into a global currency has begun. It will not be an overnight change, but the change may take place faster than expected. The economic crisis has provided China with a window of opportunity to leverage its relative stability and status as a trade surplus country to extend yuan credit to deficit countries globally.
Mr. Simpfendorfer is the chief China economist at Royal Bank of Scotland.
The Yuan is not convertible yet, but is there a black market ? can we buy some in Hong Kong ?
the chinese like to bet, they like casino, so I'm surprised there isn't some underground movment of money already. Or is it we aren't aware of it ? Isn't there some big money to make if the Yuan become convertible since, considering the Chinese pretty good fundamentals, it inevitably going to see its value jump or is there something I don't get ?
The yuan has been used in southeas asian countries as hard currency for years, such as vietnam, Laos, Thailand, etc. Many shops also take RMB directly.
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