Guest views are now limited to 12 pages. If you get an "Error" message, just sign in! If you need to create an account, click here.

Jump to content
  • CRYPTO REWARDS!

    Full endorsement on this opportunity - but it's limited, so get in while you can!

"It's A Huge Story": China Launching "Petroyuan" In Two Months


Recommended Posts

Man Asked To Speak To Chinese Officials Says China To Back Currency With Gold, Triggering A Major Crisis In The West
May 01, 2015
King-World-News-Man-Asked-To-Speak-To-Ch

Today a legend who was recently asked by the Chinese government to give a speech to government officials in China told King World News that China will back its currency with gold, triggering a major crisis in the West.

Eric King:  “John, you have connections at the highest levels in Asia, what’s happening there?”

John Ing:  “Well, it’s interesting, Eric, that you ask.  Chinese demand in the first quarter was more than 327 tonnes of gold.  I’ve been telling you that the Chinese have been buying more than 100 tonnes of gold each month and the numbers now confirm that….

Continue reading the John Ing interview below…

 

 

We have also seen other central banks buying gold.  Turkey, Belarus, Kazakhstan and Russia have all been buyers of gold.  We also saw Venezuela use their gold in order to get liquidity for the foreign exchange market.

King-World-News-Richard-Russell-I-Must-C

U.S. Dollar Flirting With Key support Levels

It’s also interesting to note that the U.S. dollar headed south once the Dollar Index hit par.  Now the dollar is flirting with important support levels.  A strong dollar is really hurting corporate earnings in the United States, so they are probably engineering the dollar lower in order to stop the bleeding.

Look at what’s happening in Europe.  Greece is nearing another major deadline next week and they need to come up with some money in order to make the IMF payment.”

Crisis For The West

Eric King:  “From a bigger picture perspective, there is a lot of speculation that the West is running out of physical gold because all of their gold has been steadily flowing into Asian vaults, particularly China's.  What are your thoughts on what clearly appears to be a developing crisis for the West?”

John Ing:  “This week I’ve had a number of conference calls with key officials in China.  They are laughing at the Western propaganda because the Chinese feel if 7 percent growth is a slowdown, they will take it.

KWN-Embry-I-392015.jpg

Shanghai Gold Exchange Withdrawals Running 3-Times The Rate Of Comex

With regards to gold, there is not only anecdotal evidence of a looming gold shortage, but there is also evidence on the Shanghai Gold Exchange that there has been significant draw down of physical inventories in the near-month.  They have been running physical gold withdrawals at more than 3-times the rate of the Comex.

That massive physical demand is coming not only from the Chinese public, but also from China's central bank.  The Chinese are vacuuming up all of the available physical gold at these discounted price levels.

KWN-Maguire-II-3272015.jpg

Gold To Back China's Currency – Move Will Trigger Major Crisis In The West

I’ve been telling you for some time now, Eric, that gold will be a key part of the Chinese Renminbi as that currency is systematically internationalized.  Now we have the IMF considering using gold as a reserve in the SDRs (Special Drawing Rights).  Once that happens, that is yet another foundation for the reemergence of gold as a first-tier global currency.

That will also mark the point at which China will disclose how much physical gold it actually has in its massive reserves.  We already know that in 2009 the Chinese reported a little over 1,000 tonnes.  There is a great deal of speculation about how large Chinese reserves are at the current time.  All I can tell you is China will eventually be backing their currency with gold and that's when a major crisis will be triggered in the West.”

http://kingworldnews.com/man-asked-to-speak-to-chinese-officials-says-china-to-back-currency-with-gold-triggering-major-crisis-in-the-west/

  • Upvote 2
Link to comment
Share on other sites

(edited)

China gold reserves may become less mysterious

Better statistics link to potential SDR adherence 

by David Marsh

Mon 27 Apr 2015

The world may before long know a little more about China’s hitherto opaque gold reserves  – thanks to complicated manoeuvrings on the renminbi potentially joining the International Monetary Fund’s monetary reserve denominator, the Special Drawing Right, later this year.

As part of diversification of reserves holdings, China over the past five years is widely believed to have amassed gold reserves well above its officially reported total of 1,054 tonnes, a figure which Beijing has maintained unchanged since 2009 in data reported to the IMF. Gold mines in China – the world’s biggest bullion producer for the past eight years, with 2014 output of 452 tonnes - have been quietly selling some of their output to the state, possibly several hundred tonnes in some recent years.

The mystery over Chinese gold purchases has deepened at a time when central banks from other emerging market economies, including Russia, Iraq, Turkey and Kazakhstan, have been overtly buying significant quantities of gold, while those from the developed world have stopped selling, pushing annual reported net central bank gold purchases to around the highest level for 50 years. This is an important reason why the yellow metal’s price has largely remained in the $1,200 to $1,400 an ounce range in the last two years despite the sharp revaluation of the dollar.

The link between gold and the SDR – the IMF’s composite currency unit, comprising the dollar, euro, yen and sterling – resides in China’s potential upgrading of its international statistical reporting as part of a deal under negotiation on becoming the first emerging market economy to join the elite group of reserve currencies. 

There is no formal quid pro quo in discreet bargaining between Beijing and Washington, and nothing has been agreed so far. Yet establishing China’s place at the monetary top table of world monetary powers could be accompanied by relaxation of Beijing’s restrictions on providing the IMF details on its foreign currency and gold holdings.

Among conditions governing a decision on refashioning the SDR, the IMF is examining the renminbi’s much-increased use in world trade and reserves as well as whether it is ‘freely usable’ in international payments and official transactions. One important side-issue is that China may be moving towards modifying its previous non-co-operation with the IMF in providing a confidential currency breakdown of its $3.7tn of foreign exchange reserves.

China enforces reserves secrecy to protect its national interests against what it deems as western competitors, but the country’s  integration into the world economy makes the policy seem outmoded and counterproductive.

The renminbi’s adherence to the SDR would have little immediate practical significance since the unit is not a real currency. But a positive decision would be of great symbolic value to Beijing, reinforcing both its challenge to western dominance of global monetary governance and its new efforts to turn the renminbi into an international hard currency.

China’s last revision to official gold reserves was in April 2009, when the reserves total was raised from just under 600 tonnes, a figure Beijing had maintained unchanged since 2002. China may wish to make an announcement of a new total, of a sufficient magnitude to create a stir on the gold market, at a time when international gold prices are stable or rising.

China’s present reported figure of 1,054 tonnes makes it the seventh biggest official gold holder. Russia overtook China last year as a result of Moscow’s gold buying to reduce its dependence on the dollar. Russia has official holdings of 1,207 tonnes, making up 13% of the state’s overall reserves, against a percentage of just 1% for China.

There has been speculation that China could announce at least a doubling of gold reserves to above 2,000 tonnes, potentially putting it in the same league as the other large gold holders - Germany (No. 2 globally with 3,384 tonnes, well behind the world leader, the US, with 8,134 tonnes), the IMF with 2,814 tonnes, Italy with 2,451 tonnes and France with 2,435 tonnes.

One factor that could embolden the Chinese leadership on the timing of a higher bullion reserves announcement reflects gold’s firmness against other currencies that Beijing also holds, along with the dollar, in its foreign exchange assets, especially the euro – for China, a significant benchmark. As a result of the dollar’s general international strength, gold has risen 28% in euro terms since end-2013, strengthening the logic of China’s behind-the-scenes gold diversification.

http://www.omfif.org/analysis/the-omfif-briefing/2015/april/china-gold-reserves-may-become-less-mysterious/


 

 

 

EXPERT SEMINARS | CHINAFRI 22 MAY 2015

China, the Special Drawing Right, and the world reserves system

International Monetary Institute, Renmin University, Beijing

imi-ruc.jpg
chen-yulu.jpg

Chen Yulu, President, Renmin University

The issue of whether the renminbi should be part of the International Monetary Fund's Special Drawing Right is highly technocratic, but the political questions at stake go to the core of world money. This seminar will explore the leeway for developing the SDR with the addition of the Chinese currency.  


BRIEFINGS | USAFRI 17 APR 2015

Gold, the renminbi and the multicurrency reserve system

Washington

 

http://www.omfif.org/meetings/briefings/


Gold, the renminbi and the multi-currency reserve system January 2013

 

 

 

 

2 This report has been commissioned by the World Gold Council as part of a series of reports analysing the role of gold in the International Monetary System. About the World Gold Council The World Gold Council is the global authority on gold and its uses and the first source of informed opinion and advice for stakeholders and decision makers. We use this knowledge to develop insights into the future role that gold can play across a number of sectors and then, in collaboration with partners, intervene to deliver solutions and create new markets, and to increase and sustain the demand for gold. In the Investment sector we make gold fundamental to investment decision making. For Governments and Central Banks, we are a trusted advisor to policy makers and reserve asset managers on all matters related to the gold market. In the Jewellery sector, we create new insights and ideas which increase the allure and significance of gold when given or worn. In the Technology sector, we work to place gold at the heart of technological advancement, and we are the authority on innovative uses of gold in industry and society. As the global advocate for gold, we are committed to playing a key role in the development of a responsible gold mining industry. Our members, the leading gold mining companies, regard the management of the local environment and relationships with local communities as paramount considerations during the lifetime of any mine project. Together, we work to ensure the industry as a whole is striving to develop and integrate best practice. All our work is informed by a deep understanding of the wide role gold has in society and its potential both now and in the future. Through commercial partnerships and industry leading research, we develop a clear understanding of, and insight into, each of its key markets. Using this insight, we create new, relevant and innovative solutions that deliver against clearly identified market needs. Our insight adds value to our partners and stakeholders across all sectors, and informs each of our programmes and market interventions. Gold, the renminbi and the multi-currency reserve system Gold has a lot going for it; it correlates negatively with the greenback, and no other reserve asset seems safe from the coming dollar shock.

 

T he world is preparing for possible twin shocks from the parlous position of the two main reserve currencies, the dollar and the euro. As China weighs up its options for joining in the reserve asset game, gold – the official asset that plays no formal part in the monetary system, yet has never really gone away – is poised, once again, to play a pivotal role. Many dismiss gold as a relic of the past or as an inadequate hedge against inflation. But from an asset management point of view, as well as on the basis of political analysis, gold has a lot going for it; it correlates negatively with the greenback, and no other reserve asset seems safe from the coming dollar shock. If the spectre of collapse continues to haunt the main reserve assets, and on the expectation that the renminbi will take time to get into its stride, the world will rush to safe havens. Gold may be the only one with the requisite size, clout and – dare I say it – history to help ward off the strains that will beset the world monetary system. It would be wise to draw up contingency plans for such eventualities. In a sense, we have been here before. The twin centrepieces of the Bretton Woods system, the dollar and sterling, were both under strain as a result of economic weaknesses in the 1960s and 1970s, which marked the start of a debate that has continued since then on the gradual development of a multi-currency reserve system. Curiously, the main beneficiary at the time was the German D-Mark, the currency that has bequeathed the euro, presently under strain as the result of the great economic and political divergences at its very heart. But, compared with the previous transition, there are great differences. Let me list five of them. First, the west has been assailed by the longest-running economic crisis since the 1930s, hollowing out the natural ambitions of the countries that used to run the world, and weakening the natural pull of the US and European currencies. Second, Asia is rising in the economic and political firmament, reinforced by the resistance of the Asian economies to the transatlantic financial crisis and their governments’ determination to learn from their own and others’ past mistakes. Third, China and Asia have over-saved, partly because of massive perceived shortcomings in the International Monetary Fund’s intervention in the 1997-98 Asian crisis. These countries have amassed huge surpluses in the form of massive monetary reserves that have become the most potent factor behind reserve diversification into other assets including gold. The IMF's belated recognition in December 2012 of the occasional need for temporary capital controls demonstrates how dealing with world imbalances in a way consistent with emerging market needs has become a new force in international policy thinking. Gold, the renminbi and the multi-currency reserve system Foreword Meghnad Desai, Chairman, OMFIF Advisory Board Filling the vacuum 3 OMFIF Official Monetary and Financial Institutions Forum Official Monetary and Financial Institutions Forum One Lyric Square London W6 0NB United Kingdom t: +44 (0)20 3008 8415 f: +44 (0)20 3008 8426 Holly Topham Production Editor holly.topham@omfif.org Meghnad Desai Chairman, Advisory Board John Nugée Frank Scheidig Songzuo Xiang Deputy Chairmen, Advisory Board Edward Longhurst-Pierce General Manager edward.longhurst-pierce@omfif.org David Marsh Chairman david.marsh@omfif.org Gabriel Stein Chief Economic Adviser gabriel.stein@omfif.org Fourth, with the rise of the renminbi, despite all the evident handicaps attending to its potential reserve status, Asia has a champion with which to confront the supremacy of the western currencies. Fifth, and most crucial with respect to the role of gold, the previously dominant western economies have attempted to dismantle the yellow metal’s monetary role, and – for a variety of reasons – this has comprehensively failed. Gold thus stands ready to fill the vacuum created by the evident failings of the dollar and the euro, and the not-yetrequited ambitions of the renminbi. Much needs to be done, of course, to prepare the Chinese currency for reserve status. This could take years, and there could be setbacks. The danger of perturbations along the way is likely, all the more, to underpin gold’s role as an alternative reserve asset. The Chinese authorities’ own evident leaning towards building up stocks of monetary gold, reflecting a cultural attachment to precious metals that goes back millennia, is itself a powerful factor in the equation. When it comes to international monetary reform, well before the renminbi advances to fully-fledged reserve currency status, gold might stand to reclaim a right to which it has long aspired by returning to the heart of the system. Rebuilding and reinforcing the Special Drawing Right (SDR), the IMF’s composite currency spawned in the 1960s, have been much mooted, but nothing has been done to realise this aim. I favour extending the SDR to include the R-currencies – the renminbi, rupee, real, rand and rouble – with the addition of gold. This would be a form of indexation to add to the SDR’s attractiveness. Gold would not need to be paid out, but its dollar or renminbi or rouble equivalent would be if the SDR had a gold content. By moving counter-cyclically to the dollar, gold could improve the stabilising properties of the SDR. Particularly if the threats to the dollar and the euro worsen, a large SDR issue improved by some gold content and the R-currencies may be urgently required. In its absence, we may face a huge liquidity crunch if a combination of US and European shortcomings and the natural ambitions of Asia produce an attack on the major currencies – and open up a further hole in the framework of the world’s reserve currency arrangements. As the international community attempts to take on these challenges, gold waits in the wings. For the first time in many years, gold stands well prepared to move once more towards the centre-stage. This could be the start of an immensely important phase in the history of world money.

 

https://www.gold.org/sites/default/files/documents/gold_renminbi_multi-currency_reserve_system.pdf

Edited by Butifldrm
  • Upvote 1
Link to comment
Share on other sites

 




IMF close to declaring yuan fairly valued: report

Updated: 2015-05-05 11:28

By Dai Tian(chinadaily.com.cn)


 

 

 


 



d4bed9d6d02016b27cc601.jpg

A clerk counts yuan bills at a bank in Huaibei, East China's Anhui province. [Photo/IC]



 


The International Monetary Fund is close to declaring renminbi fairly valued for the first time in more than a decade, according to the Wall Street Journal.


The fund is expected to make its result official in reports due out in the coming months, said the Journal on Sunday.


A special drawing right (SDR) review is also underway, where the IMF will decide whether to include renminbi into the SDR currency basket, said Zhu Min, deputy managing director of the Washington-based organization, earlier in April.


According to the IMF, selections of currencies for the SDR basket are based on two criteria – the size of the country's exports and whether its currency is freely useable.


The SDR, an international reserve asset, currently comprises US dollar, Japanese yen, British pound and euro.


Renminbi has gained popularity across the world, and the currency is expected to account for 10 percent world reserves by 2025, reported Bloomberg citing a survey of central banks carried out in March. Asian monetary authorities are likely to show the most support.


Malaysian Prime Minister Najib Razak pledged support to renminbi at the launch ceremony of Renminbi Clearing Bank in Malaysia in April, adding that the currency will play a key role in facilitating trade and investment in Southeast Asia.


Related story: IMF's review on inclusion of yuan in SDR basket underway, by Xinhua


The International Monetary Fund (IMF) is conducting a comprehensive assessment over the Chinese currency, or yuan, in its special drawing right (SDR) review to decide whether the currency will be included in the SDR currency basket or not, Zhu Min, deputy managing director of the IMF, said on Sunday.


"A serious and comprehensive review on the Chinese currency is underway," Zhu told Xinhua as the IMF and World Bank Spring Meetings are drawing to a close.


The SDR, an international reserve asset, currently comprises US dollar, Japanese yen, British pound and euro. Allocated to countries by the IMF, an SDR represents a claim to foreign currencies for which it may be exchanged in times of need.




According to the IMF, the selections of currencies for the SDR basket are based on two criteria -- the size of the country's exports and whether its currency is freely useable. The latter requires a certain degree of capital account convertibility.


During IMF's last review in 2010, the yuan met the export criterion, but not the freely useable criterion.


According to Zhu, the review this year will make full assessment on the use of yuan in commercial banks' liabilities, its share in global foreign exchange and derivatives transactions, its ranking in international reserves, and its proportion in the global bond market.


In addition to the technical statistics, the IMF will also review China's efforts to increase yuan capital account convertibility, said Zhu.


On Saturday, China's Central Bank Governor Zhou Xiaochuan said in a statement at the Spring Meetings in Washington that this year China plans to launch a series of reforms that target currently inconvertible items under the capital account, with the aim of further promoting capital account liberalization and making the yuan a more freely usable currency.


The IMF will fully evaluate China's capital account reforms in the SDR review, Zhu said.


As to when the yuan will be included in the SDR, Zhu said theoretically the SDR review will be concluded this year, but considering the complexity and the importance of the yuan, the IMF will remain flexible in terms of the timetable for the review.


Christine Lagarde, managing director of the IMF, said on Thursday that the Chinese authorities knew quite well what is desirable, what needs to be changed and improved in the monetary policy and in the financial sector in China.


"I believe what the Chinese authorities have actually indicated. ..will naturally be conducive to an assessment of whether or not the yuan is freely usable, which is as you know one of the key criteria," she said at a press briefing on the sidelines of the Spring Meetings.


The inclusion of yuan in the SDR has already received support from some advanced economies. During the Spring Meetings, British Finance Minister George Osborne said as part of the internationalization of yuan, it's sensible to see the yuan come into the basket.


http://usa.chinadaily.com.cn/business/2015-05/05/content_20624319.htm


Link to comment
Share on other sites

Gates Says Bet On Yuan As IMF Calls Currency Fairly Valued

 
picture-5.jpg
Submitted by Tyler Durden on 05/04/2015 19:00 -0400

      • We’ve talked extensively about China’s currency conundrum which has put Beijing between a rock and a hard place as it seeks to combat rapidly decelerating economic growth (which, according to some estimates, is running as low as 3.8%). Facing rising capital outflows (totalling $300 billion over the past four quarters alone) on the one hand and falling exports on the other, there appears to be no ‘right’ answer, as devaluing the yuan to prop up exports risks throwing gasoline on the capital outflow fire, but failing to devalue in the face of a dramatic slowdown in the export-driven economy may ultimately prove to be completely untenable. This is all complicated by recent strength in the dollar and perpetual pressure on the euro and yen exerted by the potent one-two monetary insanity punch from the Draghi-Kuroda tag team. Meanwhile, China is keen to give the yuan a more prominent role in the global economy via the AIIB and Silk Road Fund and is also pushing for SDR inclusion by the end of the year. 

        Against this backdrop, the IMF is out suggesting that the currency — which, as we have noted on multiple occasions over the past several months, has appreciated to the tune of 14% on a REER basis in the last 12 or so months — is closing in on being fairly valued. Predictably, Washington does not agree. Here’s more from WSJ:

         
         

        The International Monetary Fund is close to declaring China’s yuan fairly valued for the first time in more than a decade, 
        a milestone in the country’s efforts to open its economy that would blunt U.S. criticism of Beijing’s currency policy.

         

        The fund’s reassessment of the yuan—set to be made official in IMF reports on China’s economy due out in the coming months—follows years of IMF censure of Beijing’s management of the currency.

         

        The IMF’s latest view undermines the Obama administration’s pressure on China over its management of the currency and could undercut congressional efforts to inject yuan concerns into pending trade legislation.

         

        “It takes the rug out from under the feet of U.S. critics of Chinese currency policy,” saidEswar Prasad, a Cornell University economist and former China official at the IMF. “The U.S. relied to a significant extent on what was seen as the IMF’s objective assessment.”

         

        The Obama administration disagrees with the IMF, maintaining a view that the yuan, also called renminbi, remains “significantly undervalued.”

         

        The shift at the IMF comes as Beijing is increasingly challenging the established global order. In recent months, China has won broad support for its new Asian Infrastructure Investment Bank, an entity that would rival the World Bank, the IMF’s sister institution. China is also pushing plans to create a modern “Silk Road” by better connecting its economy with those in the rest of Asia, the Middle East, Africa and Europe. 
        Chinese officials have asked the IMF to include the yuan in the elite basket of currencies that comprise the fund’s emergency-lending reserves, a decision the fund will consider later this year.

         

        The yuan is roughly pegged to the dollar, and as the U.S. currency has appreciated against most other major currencies, it has helped push up the value of the yuan. In nominal terms, the yuan’s appreciation has leveled off. But accounting for inflation, the value of the currency has risen by more than 10% in the past year alone.

         

        As China’s economy cools, some economists don’t rule out Beijing depreciating the yuan again to help juice exports and prop up its expansion.

         

        YuanStreetJournal_0.jpg

         

        Here’s a bit of color from Barclays on what SDR inclusion means for Beijing in terms of flexibility to devalue...

         
         

        On a fundamental basis, the case can be made that China’s “reluctant easing” should include a more significant move in the currency, but our view is that, ahead of the SDR review later this year, China will refrain from devaluing the CNY and even from moving USDCNY fixings notably higher. Such moves might not be welcomed by China’s major trade partners, who might be inclined to see it as currency manipulation. 

        ...and here's a look at the yuan's rising importance in global trade...

        YuanBloombergBrief.jpg

        What the above underscores is that although Beijing faces some tough choices in terms of whether or not China will eventually be forced, by slumping economic growth, to devalue, the evidence continues to mount that the yuan will play an increasingly important role in the world economy going forward, an eventuality that try as it may, the US will not be able to head off by branding the country a "currency manipulator."

        And meanwhile...

Link to comment
Share on other sites

(edited)
Russia Invites Greece To Join BRICS Bank As Greek Financial Crisis Deepens: Report
By Aditya Tejas @Artejas a.tejas@ibtimes.com on May 12 2015 6:35 AM EDT
 
 
 

 

 

alexis-tsipras-meeting.jpg?itok=TlhskXiF
Greek Prime Minister Alexis Tsipras looks on during a parliamentary session in Athens May 8, 2015. Russia's deputy finance minister invited Tsipras to join a new development bank alongside Russia and China. Reuters/Alkis Konstantinidis

Russia on Monday invited Greece to become the sixth member of the new regional bank for the BRICS countries that include Brazil, Russia, India, China and South Africa. The invitation was extended during a phone conversation between Greek Prime Minister Alexis Tsipras and Russia's Deputy Finance Minister Sergei Storchak, Agence France-Presse reported, citing a government source.

Tsipras, who reportedly called the invitation a “pleasant surprise,” said Athens would consider the option and formally discuss it with other officials of the BRICS countries at an upcoming economic summit in Russia in June, according to the source.

The Shanghai-based New Development Bank, formerly the BRICS Bank, was announced last June as a way of financing major infrastructure projects in the developing world. It is also widely seen as a counterweight to other major global finance institutions, including the International Monetary Fund (IMF) and the World Bank.

The latest move comes as Greece’s ruling left-wing Syriza party announced Sunday that it would make tougher demands upon the country's European creditors. "We have agreed on a tougher strategy to stop making compromises. We were unified and we have a spring our step once again," a Greek financial official said, according to the Telegraph.

Greece’s creditors from the eurozone and the IMF had demanded austerity reforms, including pension cuts, privatizations and an end to collective bargaining, as necessary conditions for Greece to gain access to bailout funds.

On Monday, Greece made another $834 million payment in debt interest to the IMF one day ahead of schedule.

Greek Finance Minister Yanis Varoufakis also warned that the country’s financial crisis would adversely worsen within weeks unless it secured more funds.

"The liquidity issue is a terribly urgent issue. It's common knowledge, let's not beat around the bush," Varoufakis told reporters in Brussels on Monday, BBC reported.

http://www.ibtimes.com/russia-invites-greece-join-brics-bank-greek-financial-crisis-deepens-report-1918036

Edited by Butifldrm
  • Upvote 1
Link to comment
Share on other sites

Planned a long time ago, described in Prospect for America: The Rockefeller Panel Reports.

 

 

prospectforamerica.jpg

 

https://en.wikipedia.org/wiki/Special_Studies_Project

 

If one has a chance to read the book, the plans were assembled from 1956 - 1961. The BRICS

formation is part of it all, and is being hailed as a financial savior, of course. China actually

is far ahead of the game, and the kings of the east are slowly dismantling the western illusion,

but it is still a creation of the money men. The west has pushed the system to a very destructive

point, and you will not hear it on the 'news'. Greed always has its day of reckoning, this time will

be no different. Don't be fooled though by the BRICS, although at first it will be presented as

the next best thing since sliced bread, once the newness wears off, and it will, the level of

bondage will increase. Why? Because of those who exercise control of the current system are

still involved.

 

In the aftermath of World War 2 and the resulting formation of the United Nations (which the

Rockefellers were instrumental in creating and funding), the Special Studies Project, directed

by Henry Kissinger, was formed to carry out two apparent tasks:

 

1) to create an action plan to bring about the “elite’s” long-sought world government within the existing postwar environment, and

2) to spin the agenda in such a way that it could be sold to the American people as being in their best interest.

Upon completion of their work, the Special Studies Project’s various panels compiled their reports in an incomplete, sanitized, and heavily spun book, the above-mentioned Prospect for America. The book spells out how to sacrifice the national interests of the United States for…a 'new world order'.

 

Nothing "new" about this phrase 'new world order'. It is being sold now to the people, and so few understand

its inception. It is nothing new, we just did not pay attention.

  • Upvote 3
Link to comment
Share on other sites

(edited)



Thu May 14, 2015 4:58am BST
Related: BUSINESS, G20

IDB puts Islamic finance on AIIB drawing board
SARAJEVO BY MAJA ZUVELA









 


 


President of the Islamic Development Bank Ahmad Mohamed Ali addresses the World Islamic Economic Forum in London October 29, 2013.

REUTERS/LUKE MACGREGOR



 

The Islamic Development Bank (IDB) is in discussions with Chinese officials to study the use of Islamic financing in the planned Asian Infrastructure Investment Bank (AIIB), the head of the Jeddah-based multilateral lender told Reuters.


The move could spur the use of sukuk (Islamic bonds), which have gained prominence as funding tools for a range of countries in recent years, and among multilateral lenders to help fund some of Asia's mounting infrastructure needs.


A potential link-up between IDB and AIIB, which have 20 member countries in common, would also open a growing pool of capital in the hands of private-sector Islamic investors across the Middle East and Southeast Asia.


"Our delegation has visited Chinese counterparts and we expect them to visit us soon," IDB president Ahmad Mohamed Ali said on the sidelines of an industry conference.


"We are ready to collaborate with AIIB on this project and also to help them develop expertise in Islamic financing."


Most analysts believe the AIIB will have to work with established institutions for some of its initial investments, as it takes time to develop its own pipeline of deals.


Developing countries spend about $1 trillion a year on infrastructure and an additional $1-1.5 trillion will be needed through 2020 in areas such as water, power and transportation projects, according to the World Bank.


The asset-backed nature of Islamic finance makes sukuk ideal for such transactions, but until now the format has been confined to handling mid-sized deals with shorter tenors.


The IDB wants to change this, with the multilateral lender now planning to set up a dedicated infrastructure unit.


"Our research unit is currently exploring ways on how to pursue these plans and formation of a special unit to deal with infrastructure projects is on the table," Ali said.


Even the Asian Development Bank, seen as a rival to the AIIB, is stepping up efforts to assist its member countries to use sukuk for infrastructure financing.


The IDB is also coordinating with Turkey, Indonesia and Saudi Arabia to support efforts by the G20 group of nations which has included infrastructure sukuk in its annual agenda.


The AIIB has yet to start operating, but it is designed to cater to Asia's growing appetite for infrastructure, with many of its projects housed in IDB member countries.


Besides the three Muslim-majority G20 members, the AIIB counts other Muslim countries such as Kazakhstan, Pakistan, Qatar, Jordan and Oman as founding members. All have issued or have plans to issue sovereign sukuk.


 


http://uk.reuters.com/article/2015/05/14/uk-idb-aiib-islamic-financing-idUKKBN0NZ08I20150514



Edited by Butifldrm
Link to comment
Share on other sites

China thirty thousand tons of gold or the dollar completely bankrupt?

2015-05-13 22:25:52
 

Multidimensional News

In a world full of official monetary gold in the financial system in what plays an important role? Supporters usually gold as a hedge fund economic turmoil, and critics often its gold production, but is not a rock. Chinese financial observers said thick gold, dollar face increased uncertainty, China's thirty thousand tons of gold or the dollar completely bankrupt.

28aaba3329a44cf2b4a376a703baabe1_w.jpg
Thick gold recently wrote in the business insight net, Greenspan Fed for nearly two decades, he was modest as long as China's foreign exchange reserves to its four trillion into gold, the Chinese currency will gain in the current international financial system unexpected strength. At present, "de-dollarization" of intensified, the low dollar currency reserves gradually being challenged. China is the largest creditor nation in the face of uncertainty factors have increased the dollar, China's thirty thousand tons of gold or the dollar completely bankrupt.

US GDP compared to global economic output fell by only 25%, the dollar still holds 60% of world foreign exchange reserves. Still, there are a lot of countries want to remove the shackles of the dollar. Therefore, the Chinese challenge to US dominance of global trade and finance may need to use a considerable amount of gold.

Although the world had not the gold standard, but the United States and the European central bank reserves, there are still a large part of the gold. China has become the world's second largest economy in 2010, and to intensify its efforts to allow the yuan to the dollar effectively become competitors. This allows people to guess, $ 3.7 trillion of foreign exchange reserves in order to diversify China, the Chinese government should store a lot of gold.

Bloomberg industry research based on trade data, domestic production and the calculation of the China Gold Association believes that since April 2009 the last published data, China's central bank's gold reserves may have tripled, to 3,510 tonnes. Such a scale would after the United States 8,133.5 tons, ranking second in the world.

TD Securities director of commodity strategy BartMelek said, "if you want to become a reserve currency, in addition to other legal tender on your balance sheet but also other assets," "In a world power increasingly serious rise, gold is certainly a viable store of value. "

As the first person AlasdairMacleod gold analysis said, China in 1982-2003 years, piling up 25,000 tons of gold. At present, China's gold reserves is likely to have more than thirty thousand tons of gold reserves, which is a non-peddling namely rental of gold in stark contrast to the United States. "

China may be preparing to disclose the latest gold reserves data because policy makers are pushing the yuan among the dollar, euro, yen and pound ranks, incorporating IMF Special Drawing Rights (SDR) currency basket.

According to Xinhua News Agency, Li said: "China will accelerate the renminbi capital account convertibility, and measures to provide more favorable domestic personal cross-border investment and foreign institutional investment in the Chinese capital market.

Nomura Holdings April 8 report said the Chinese central bank's data may be on the meeting before the SDR in the IMF published next month or in October.

Chinese government to promote the internationalization of RMB work really made a lot of achievements. Up to now, China has with about 28 countries have signed a currency swap agreement, Zurich, Switzerland, China also set up a yuan trading center, all these measures greatly enhance the role and influence of the yuan in the international payments market.

AlasdairMacleod GoldMoney's research director, said the author, China indeed identified the strategic objectives of internationalization of the RMB, Hong Kong and London not only to encourage the completion of RMB offshore market, but also by actively promoting within the Shanghai Cooperation Organization in many Asian countries were non-dollar trade settlement.

At the same time China is a low-key gold reserves, but also "quietly" to encourage people to buy gold.

There is no doubt that China is the current world's reserve currency - the dollar to prepare for the loss, in order to avoid the resulting impact, the inevitable result is that gold reserves.

According to the IMF statement, before the 1973 collapse of the Bretton Woods system, gold play a central role in the international monetary system.Although the role of gold in the next dwindling, but the IMF still held 2,814 tonnes of gold, the majority of the central bank's balance sheet also retains some of its gold reserves. Russia's gold reserves since 2005 has more than doubled.

If China really have 30,000 tons of gold reserves, so the size of the gold will be to some extent become the strong backing yuan; even if China does not 30,000 tons of gold reserves, at least China's massive buying gold is an indisputable fact, such as China position in the global financial markets and the impact can not be underestimated.

30,000 tons of gold reserves of China will make the call on their own outside the reserve were subversive adjustment, the Chinese government has tasted the sweetness of the planned economy, which makes them more prone to economic and financial development were ahead of plan.

Therefore, China's gold reserves behind the inevitable adjustment is the adjustment of China's economic and financial way, it is worth attention of other countries in the world.

Chinese walking down the road to the world powers. According to OECD estimates, by 2016 China will surpass the United States in economic terms.Economic strength has always meant political power.

As in the 20th century Ji Daying Empire had to give hegemony the United States, the 21st century is also undergoing a transfer of power in favor of China. One of the significant means is to use the yuan replace the dollar as the reserve currency. In China's view, there is emerging a historic opportunity tomorrow to shape the world.

During World War II it has established the US dollar as the reserve currency of the international monetary order. Even after abandoned the gold standard in 1971, the dollar has not yet been compromised. Every American president to push high-tech debt and rapidly increase the money supply. America's total debt is now up to $ 16.7 trillion. Dealing with this problem "prescription" is inflation.

But the world has changed a lot in 2013, it is no longer 1944. China believes that the time is ripe to take advantage of the dollar and the weakness of the US economy to fight the current to get a dominant position. China to how to achieve this goal?

From the bilateral trade agreement signed between China and some countries in the initial clues can be found: a growing number of trade settlement in yuan, and the dollar in which no longer play any role. This is to the US dollar as an international trading currency explicit declaration of war.

Another clue is: a lot lately in the financial media can read newly industrialized countries a crisis. The reason is that the Federal Reserve announced the future will tighten monetary policy. The reaction of investors is divestment from emerging markets. In those countries with China over the years maintained close trade relations can also be felt. Unrest in these countries directly and US monetary policies.

We can assume that, at the latest at the end of the recent turmoil, people will be on the US dollar as a reserve currency question. Next will present "after" who plays the role of problem.

An answer is not impossible:! New Chinese gold standard dollar or the euro is the official currency only. In the case of China, the future of the world's largest economy to be secured with a gold for its currency, the world would give up a considerable number of countries in the West increased the risk of currency devaluation, and turn to this new safe haven.

A post-war world economic situation and is now very similar. Dollar transfer of power is now in the stage of the renminbi.

The end of this phase may be introduced into China the gold standard. This is a nightmare for the United States. As long as the world paid in dollars, no major US economic activity can produce wealth.

While other countries often through the purchase of US Treasury bonds and the dollar earned in trade "with" US debt. China to introduce new gold standard would seriously threaten the privileges and wealth accumulation connected with this.

However, the introduction of Chinese gold standard will not happen overnight. Not to mention China's financial infrastructure is still underdeveloped, it is not so much of gold reserves. According to official data, in 2009 China has 1,054 tons of gold, while the United States and Germany, respectively, with 8,000 tons and 3,395 tons of gold.

But in the past few years China may increase the reserve. At present, China is the world's largest gold producer. In addition, China can easily buy foreign gold reserves by foreign state investment funds or shares of gold companies.

China in the development of domestic mineral huge investment, now has become the world's largest gold producer, it is expected to reach annual production of about 440 tons, in addition to China but also from elsewhere to buy gold while the domestic gold mining gold almost did not appear in the market on, it can reasonably be inferred that the government is all the domestic gold mining are stored.

China's private sector demand for gold has further expanded its total gold demand has significantly exceeded production in other countries. The first eight months of this year, the inflow of private hands and Hong Kong from Shanghai Gold Exchange gold has reached 1730 tons, this year is expected to reach 2,600 tons.

In addition to China, the world's gold production is expected to only 2,260 tons, which not only a major importer of gold in India and Southeast Asia is facing shortage of supply, the whole world there is tight supply situation.

This makes many people suspicious that make Western central banks by selling gold reserves to maintain a stable price of gold, because gold ETF funds and non-Asian countries, diminishing supply completely insufficient to meet the surge in demand.

But this year's gold sell-off also showed investors increasingly lost interest in gold.

According to the British Financial Times reported that the first six months, exports to the United Kingdom gold refining industry is important to the gold in Switzerland, it surged from last year's 83 tons to 798 tons, equivalent to nearly 30 percent of global gold output.

Mass market investors to sell gold is making gold ownership massive shift taking place, West shot over Asia.

Why is China so love gold? The answer is likely to contain geopolitical factors. It is worth noting that, through the Shanghai Cooperation Organization, China and Russia in support of the multinational is being established under an economic group, the economic groups have a common characteristic - gold, almost all of the Shanghai Cooperation Organization countries are in the gold reserves.

Western countries sell gold reserves may become the financial history of the greatest strategic gamble.


Read more: http://dinarvets.com/forums/index.php?/topic/202602-china-thirty-thousand-tons-of-gold-or-the-dollar-completely-bankrupt/#ixzz3aIyQ8BS3

  • Upvote 1
Link to comment
Share on other sites

Agreement on AOA milestone for establishment of AIIB

 

  • Xinhua
  •  
  • 2015-05-23
  •  
  • 11:17 (GMT+8)
C522X0261H_2015%E8%B3%87%E6%96%99%E7%85%

Representatives of the AIIB's founding members pose for a photo in Singapore, May 22. (Photo/Xinhua)

The 5th Chief Negotiators' Meeting on establishing the Asian Infrastructure Investment Bank (AIIB) concluded on Friday after a three-day discussion with an agreement being reached on the Articles of Agreement (AOA) and a decision being made that the signing of the AOA take place at the end of June in Beijing.

Though representatives of founding members didn't reveal many details such as equity allocation, approval process and whether China has veto power after the close-door meeting, Shi Yaobin, Vice Minister of Chinese Ministry of Finance and Permanent Chair of the Chief Negotiators' Meeting, told Xinhua that the planned authorized capital of AIIB will be allocated based on GDP data for Asian countries. "The planned authorized capital of the AIIB is US$100 billion, which will be allocated based upon GDP data for Asian countries. As for countries outside the region, GDP is also an important criterion for allocationm" said Shi in an interview with Xinhua after the meeting.

The media had speculated that the AIIB would copy the IMF practice of allocation based on GDP and capital.

Research done by the Korea Institute for International Economic Policy (KIEP) showed that China (30.85%) will be the largest shareholder in the AIIB, followed by India (10.4%), Indonesia (3.99%), Germany (3.96%) and South Korea ( 3.93%) if Asian countries account for 75% of the shares and allocation is based on the rule that GDP accounts for 60% while purchasing power parity (PPP) weighs about 40%.

Chen Kang, professor at the Lee Kuan Yew School of Public Policy at National University of Singapore, said based on what has been revealed, the allocation criteria for the AIIB sounds reasonable.

"The AIIB would have lost its Asian characteristics if allocation was strictly based on GDP alone. Firstly, the bank must differentiate Asian countries with countries outside the region, then allocate funds on the basis of GDP. This practice sounds more reasonable, as countries outside the region are developed countries in Europe," Chen said.

Although not many details have been revealed, some experts generally believed the agreement on the Articles of Agreement is of great significance. For example, Chen Gang, Research Fellow at the East Asian Institute at the National University of Singapore, said that the agreement of AOA is the milestone for the establishing of AIIB.

"Founding members of the AIIB have made some compromises and finally reached an agreement this time," said Henry Gao, Associate Professor of Law at Singapore Management University. Gao added that the agreement on the AOA means the major powers have made an agreement, which also indicates that the establishment of AIIB has entered a crucial phase.

Chen Kang thought the most important part in AOA is the establishment of a decision-making system, equity allocation and loan approval system. Chen Gang agreed with this sentiment. He said that these three parts will determine the voice and decision-making ability of the AIIB, adding that the procedures of discussion, decision-making process and operations will function as institutional protection for the new bank.

However, whether the AIIB can be a lean and efficient organization rather than a bloated juggernaut has become the concern of observers.

To build a "lean, clean and green" AIIB, Jin Liqun, secretary general of the interim multilateral secretariat of the institution had said that China will borrow good experiences from existing multilateral financial institutions such as the World Bank and Asian Development Bank(ADB), but in the meantime, seek improvements and innovation in the managing of the new bank.

Chen Kang said that it is easy for multinational organizations such as the AIIB to encounter problems such as bureaucracy, but it has made efforts to tackle such difficulties. For example, one proposal to be discussed this week would allow the board of directors representing member countries to stay in their home countries as opposed to at the lender's headquarters. That, in Chen Kang's perspective, is a move to minimize bureaucracy.

Another important thing is to simplify the approval process, said Chen Gang. "Provisions have been set up to accelerate the speed of the loan approval process, which should be measured by the urgency and the size of the loans needed, rather than making them obstacles," he said.

Chen Gang said that too many provisons have resulted in low efficiency at the World Bank and ADB, even if these provisos were meant to fight corruption.

"It is important to make sure that the operation of its projects are transparent and environmentally-friendly, just as the US and Japan have pointed out, yet the priority is to meet the huge investment needs in infrastructure construction in Asia, and raise efficiency."

Henry Gao, who is also a member of the advisory board at the WTO Chairs Program, said that efficiency won't be a major problem in the running of AIIB. "Bureaucracy is a result of a long and old working pattern. New organizations like AIIB won't encounter such problems during the first decade of its operation," Gao said. "Some policies are set up with good reason, yet they become old-fashioned when things have already changed, and the AIIB can innovate in its evaluation of loan approval conditions, and make some adjustments at regular intervals."

Another issue being discussed is currency. Previous media reports said that Beijing may call for the AIIB and the Silk Road Fund to use a basket of currencies, rather than the US dollar or Renminbi as a currency of settlement. Even though no decision has been given out at this meeting, experts agree that a basket of currencies is quite feasible.

"The regional RMB settlements have already taken shape, and using a basket of currencies will also enable the role of Asian currency in international settlement," Chen Kang said.

Even though the AIIB is still in its initial stages, it has already brought substantial benefits to countries in the region as existing organizations have stepped up investment in local infrastructure investments.

The World Bank Group recently said that it had decided to offer Indonesia up to US$12 billion in new financing to 2019 to support its infrastructure construction, while the ADB formally announced that it will combine the lending operations of its Asian Development Fund (ADF) with its ordinary capital resources (OCR) balance sheet in order to boost its lending capacity for Asia's poor members.

Despite many still describing the AIIB as the rival of existing multilateral institutions, they have already begun cooperating. The ADB, IMF and World Bank all expressed support for the AIIB, and experts say even if they might have competition on specific projects, these are "benign competitions."

"Competition will lead to better systems and a more effective approval process," Chen Kang said. His words were echoed by Gao, who said these organizations can also cooperate on major projects.

http://www.wantchinatimes.com/news-subclass-cnt.aspx?cid=1102&MainCatID=11&id=20150523000064

Link to comment
Share on other sites

Russian Pivot: Greece Will "Probably" Join BRICS Bank, Official Says

 
picture-5.jpg
Submitted by Tyler Durden on 05/30/2015 14:25 -0400

    • Greece has very little in the way of bargaining power with European creditors.

      Outside of gimmicks like tapping its SDR reserves, Athens has no cash to make payments to the IMF in June and, perhaps more importantly, there's very little in the way of wiggle room when one looks at revenues versus spending (see below), meaning Greece will also struggle to pay public sector employees which, in combination with Greeks’ consternation about the safety of their deposits, could contribute to social unrest and put unwelcome political pressure on PM Alexis Tsipras and his Syriza party that swept to power just five months ago on a defiant (and apparently naive) anti-austerity platform. 

      GreeceRevsVsSpend.jpg

      The troika (and Germany) knows this of course and they are also acutely aware that Spain's Podemos and Portugal's Socialists are watching the Greek drama closely for the slightest indication of concessions from the IMF or from the EU. In other words, the standoff is now just as much about politics as it is about economics, and the 'institutions' do not want any Syriza sympathizers to be able to say that Greece made anyone blink by threatening an exit from the currency bloc. 

      What all of the above means is that for better or worse, Greece has essentially no leverage because for many European officials, trading austerity concessions for the right to maintain the idea of euro indissolubility is no longer a desirable outcome as it could embolden anti-austerity governments in larger, more influential countries. 

      All of that said, Greece still has one card to play: the so-called 'Russian pivot'. Over the course of negotiations between Syriza and the troika Moscow has, at various times, sought to take advantage of the hostilities between Athens and Brussels by making a series of overtures including the possibility of a €5 billion advance on Greece’s portion of the Turkish Stream natural gas pipeline and an invitation for the country to join the BRICS bank, a possibility Goldman’s Jim O’Neill wrote off as a politically-motivated “joke.”

      But Vladimir Putin isn’t fond of joking (unless he’s participating in his yearly town hall meeting with the Russian people) and sure enough, less than two months ahead of this year’s BRICS Summit in Ulfa, it appears Greece may accept Moscow’s invite. 

      Enikos has more:

      As mentioned above, this comes as Russia, Brazil, India, China, and South Africa are set to officially launch the BRICS bank and a related reserve pool when the group of emerging powers convenes on July 8-9 in Russia. It also comes as Moscow looks set to put plans for a Eurasian currency bloc into motion and as the Central Bank of Russia explores the possibility of establishing a BRICS-associated alternative to SWIFT.

       
       

      Greece is preparing and will probably submit a request to participate in the new development bank for BRICS countries and has secured Russia’s support on the issue, Productive Reconstruction, Environment and Energy Minister Panagiotis Lafazanis told ANA-MPA news agency on Friday evening.

       

      “During my meeting with Russian Deputy Finance Minister Sergey Storchak, we secured the decisive Russian support to Greece’s request for participation in the new development bank of BRICS countries. The relevant request for Greece’s participation…will be symbolic and will be paid in installments, while right after operations begin, it will be able to accept financial support,” the minister said.

       

      Lafazanis added that technical details were also discussed on how to submit the request so that it will be accepted after discussions within the Greek government conclude.

       

      He also noted that he also discussed the credit facility that will be provided by Russian banks to the Greek company which will undertake the construction of the new gas pipeline which will cross Greece.

       

      “Repayment of the Russian loan will be achieved by the profits made through the operation of the pipeline and this facility is not related to loans or economic assistance between states,” he said.

      Additionally, China's recent $50 billion commitment to Brazil underscores the degree to which BRICS nations are expanding their economic and political cooperation in the face of declining Western hegemony. The BRICS bank speaks to the idea that the world's most influential emerging markets now feel it necessary to support each other in the face of what they view as a half-hearted attempt on the part of the world's existing multilateral institutions to serve EM interests or even to give them representation that's comparable to their place in the world economy. Here's what we said on Friday:

      Why would Russia want Greece to join the bank? The motivation is clearly geopolitical consdering that Greece is broke, and what's interesting about the statement from Lafazanis is that it appears to suggest that Greece's paid in capital would come in installments while Athens would immediately be eligible for a loan from the bank.

       
       

      Much like the China-led AIIB, the BRICS bank is in many ways a response to the failure of US-dominated multilateral institutions to meet the needs of modernity and offer representation that’s commensurate with the economic clout of its members.

      In short, Putin would like nothing better than to establish a symbolic relationship with the first country to break from the supposedly indissoluble currency bloc, especially given the situation in Ukraine. Meanwhile, Greece is out of leverage, especially now that recent regional and municipal elections in Spain have proven to Athens' EU creditors that the austerity (or, 'fauxterity' as we're fond of calling it) revolt is very real. We'll see what, if any, impact this latest Russian pivot trial balloon has on Greek debt deal negotiations.

      5
       
       
       
       

http://www.zerohedge.com/news/2015-05-30/russian-pivot-greece-will-probably-join-brics-bank-official-says

Link to comment
Share on other sites

Turkey: No behind the control of the Bank of Asia politically motivated

Economy and tenders

 Since 31/05/2015 16:25 pm (Baghdad time)

cccccccccdddh_1.jpg

Follow-up scales News

Turkish Deputy Prime Minister Ali Babacan said that there was no political dimension to put Asia under the supervision of the Bank Insurance Fund and guarantee deposits and the Islamic Bank will continue to work while the search sale or merger options.

The banking supervision and monitoring body that "Asya, who indulged in a dispute between President Tayyip Erdogan and Islamic cleric Fethullah Colin, who lives in the United States poses a threat in terms of confidence and stability in the banking system."

And it handed over "control of the body to the bank insurance fund and ensuring responsible for dealing with troubled banks deposits."

Babacan said in an interview seventh Turkish TV channel "Bank continues its activity and is not closed. It's simply that the insurance fund and guarantee deposits will be from now on, responsibility for the shareholders and property rights."

"And it will do so until it is partially or completely sold, merged or turned over."

The Association of supervision and control "of bank imposed in February, the administrative control of the Bank of Asia on the basis of his lack of legal standards. The move sparked accusations of political interference that could harm the country's reputation among international investors."

And he began to "move after the bank saw withdrawals of deposits and wide last year, when Pat immersed in a power struggle between Erdogan and his supporters who created Colin Bank. Colin accuse Erdogan of trying to topple him, which he denies Colin."

It came "These developments week before parliamentary elections at a time when the authorities intensify campaign to follow Colin who work in the field of media, the police and the judiciary. Refers Erdogan to follow Colin in those areas as" a parallel state ".

Babacan denied "the existence of any political motives, saying that the battle against parallel state has been going on for over a year."

"If there was a political decision, it would have taken those steps in" .anthy 29/25 before the

Link to comment
Share on other sites

Greek Energy min. Lafazanis: Greece Will Probably Submit Request to Participate in BRICS Bank

by A. Makris -  May 30, 2015
 

lafazanis1.jpg

Greece is preparing and will probably submit a request to participate in the new development bank for BRICS countries and has secured Russia’s support on the issue, Productive Reconstruction, Greek Environment and Energy Minister Panagiotis Lafazanis told ANA-MPA.

“During my meeting with Russian Deputy Finance Minister Sergey Storchak, we secured the decisive Russian support to Greece’s request for participation in the new development bank of BRICS countries. The relevant request for Greece’s participation…will be symbolic and will be paid in installments, while right after operations begin, it will be able to accept financial support,” the minister said.

Lafazanis added that technical details were also discussed on how to submit the request so that it will be accepted after discussions within the Greek government conclude.

In addition, he noted that he also discussed the credit facility that will be provided by Russian banks to the Greek company which will undertake the construction of the new gas pipeline which will cross Greece. “Repayment of the Russian loan will be achieved by the profits made through the operation of the pipeline and this facility is not related to loans or economic assistance between states,” he said.

(source: ana-mpa)

- See more at: http://greece.greekreporter.com/2015/05/30/greek-energy-min-lafazanis-greece-will-probably-submit-request-to-participate-in-brics-bank/#sthash.YaeSewMW.dpuf

  • Upvote 1
Link to comment
Share on other sites

G7 backs inclusion of yuan in IMF basket of currencies

 

 

By

 Chen Jia (China Daily)Updated: 2015-05-30 09:06

 

 

d4bed9d6d02016d34fe701.jpg

A clerk counts yuan bills at a bank in HuaibeiEast China's Anhui province. [Photo/IC]

 

The Group of Seven countries are in fundamental agreement that the Chinese yuan should bepart of the IMF's international basket of reference currenciesbut there is no need to rush,German Finance Minister Wolfgang Schaeuble said on Friday.

"There are technical issues and not just technical onesto sort outSchaeuble told a newsconference at the end of a meeting of G7 finance ministers and central bank governors inDresdenGermany. "We are in full agreement on the goalbut it would not be good to rush it," headded.

Beijing has been pushing for its currency to play a greater role in the world financial system andbe included in the basket that makes up the International Monetary Fund's "special drawingrightsreserve currencyThe IMF said on Tuesday that the yuan is "no longer undervalued".

Experts believe the yuan may officially become a global reserve currency by the end of the year.Inclusion in the basket could increase its use internationally.

The IMF began holding meetings this month to review the status of the Chinese currency anddiscuss whether it could be added to the special drawing rights basketResults of the SDRreviewwhich is conducted every five yearswill be available by December.

The basket currently includes the US dollareuroBritish pound and Japanese yenAdding theyuan would require the approval of more than 70 percent of IMF membersThe IMF discussionsare focusing on whether the yuan canbe used freely in cross-border trade and financialtransactionsOther issues include whether the yuan can be used as a reserve assetthe tradingvolume in the foreign exchange market and whether it can be hedged with the use of derivatives.

In a research noteAustralia and New Zealand Banking Group said that using these criteriatheyuan could get a higher score than even the yen in a simulation.

"So the Chinese currency is qualified to be included in the SDR basket," it said.

According to data from the Society for Worldwide Interbank Financial Telecommunications,which handles transfers for global financial institutionsthe yuan became the world's fifth-largestpayment currency in Decemberpassing the Canadian and Australian dollars.

"The yuan is likely to be the third-largest international currency within five years," said Liu Ligang,ANZ's chief economist in China.

China passed the United States as the world's largest trading nation in 2013. Liu forecast that bythe end of the yearmore than 30 percent of China's cross-border trade will be settled in theyuan.

More than 30 central banks are believed to have already begun reserve diversification into theyuanChina also widened the yuan's trading bandand its valuation has improved.

"The Chinese currency is much more usable and IMF politics are more supportive," said TamaraHendersonan economist at Bloomberg.

"As the world's second largest economyand with growth robust as many developed countriesremain stagnantChina now has greater heft in international decision-making.

"Since China's economic power is only likely to growthe granting of SDR status at this stagewould be an important gesture of goodwill."

Earlier this yearthe country's foreign exchange regulator changed the calculation method for thebalance of payments to meet IMF requirementsThe changes included putting reserve assetsunder the financial rather than the current account.

Adopting such global norms will support the yuan's inclusion in the SDR basketsaid experts.

http://www.chinadaily.com.cn/business/2015-05/30/content_20862055.htm

  • Upvote 1
Link to comment
Share on other sites

  • 2 weeks later...

A team of the International Monetary Fund review of its currency basket

Economy and tenders

 Since 13.06.2015 at 16:30 (GMT Baghdad)

ffdoiwqhndfiohndfcw.jpg

Follow-up scales News

Officer in the International Monetary Fund said that a team from the fund is currently visiting China in the context of a review conducted on the possibility of inclusion of the Chinese yuan to a basket of its currency.

The official said that "the Fund for the SDR basket review" ongoing technical work is still at an early stage. "

"In an e-mail" in the context of the review team from the Fund visited China to conduct technical discussions. "

And it seeks "to bring the yuan to Beijing SDR basket, which could enhance placed in the global financial system and is an important step in the emergence of Beijing as a world power."

The "General Director of the International Monetary Fund Christine Lagarde has said that annexation of the yuan to the unit of account of the Fund is only a matter of time, although US officials said that the currency is not yet ready to join" .anthy 29 / d 25


Read more: http://dinarvets.com/forums/index.php?/topic/204137-a-team-of-the-international-monetary-fund-review-of-its-currency-basket/#ixzz3cwxkhFvG

Link to comment
Share on other sites

  • 2 weeks later...

18584.jpg?width=400&height=300&crop=auto

National Business Council logo

 

Author: ASJ, BS, HA 
Editor: BS, HA 6.23.2015 eleven ten the number of readings: 725 

 

 

Long-Presse / Baghdad

Iraqi National Business Council revealed on Tuesday for approval of the Cabinet on the proposal of Iraq's accession to the Asian Investment Bank, while pointing out that the Prime Minister Haider al-Abadi face of the concerned authorities to monitor this issue.

The head of the Council David Abdul Zaire in an interview to the (long-Presse), "The Council has already lifted a proposal to the Iraqi Council of Ministers asking them to need for Iraq to join the Asian Investment Bank to bear the financial and economic benefits will return to Iraq in the event of joining."

Zaire and added that "the Prime Minister Haider al-Abadi agreed to the project and the authorities concerned to follow-up and communication and the creation of mechanisms and programs through which the possible joining of Iraq."

The Iraqi Council of National Business feet (12 May 2015), the Council of Ministers of Iraq's accession to the "Asian Investment Bank," while the expected accession of Iraq to the bank to provide the quality of services and investment opportunities.


Read more: http://dinarvets.com/forums/index.php?/topic/204578-cabinet-approves-iraqs-accession-to-the-asian-investment-bank/#ixzz3dsqEpaYP

Link to comment
Share on other sites

 

Australia will be the sixth-largest shareholder in Bank of Asia to invest in infrastructure

 
      Wednesday   24   June   2015 | 12:22
 

NB-109029-635707346721705388.jpg

 
 
 
 

The Australian government

 
 

The Australian government announced on Wednesday that it will provide a contribution worth 930 million Australian dollars (718.9 million US dollars) over five years in the Asian Bank for investment in infrastructure led by China which would make it the sixth-largest shareholder in the financial institution.

It joined 57 countries including Britain, France and Iran to the bank, which has a capital of $ 100 billion and is seen as a rival to the World Bank, which is dominated by the West.

Bank was launched in Beijing last year to support investment in transport, energy, telecommunications and other sectors of infrastructure in Asia.

A statement from the Ministries of Foreign Affairs Treasury Alastralitin "Join ADB to invest in infrastructure it provides great opportunities for Australia to work with our neighbors and the largest trading partner for us to lead the economic growth and jobs."

"ADB investment in infrastructure will work closely with the private sector which would pave the way for Australian companies to take advantage of growth in infrastructure in the region."

The statement said Australian Treasurer Joe Hockey will attend the signing of the Constituent Convention in Beijing ceremony in the twenty-ninth of June

Link to comment
Share on other sites

57 countries to sign China-led Bank charter on Monday
June 25, 2015, 12:24 pm

 

225511208_8-e1396040838814.jpg

File Photo: Chinese President Xi Jinping with German Chancellor Angela Merkel in Berlin, Germany [Xinhua]

57 founding members, many of them prominent US allies, will sign into creation the China-led Asian Infrastructure Investment Bank on Monday, the first major global financial instrument independent from the Bretton Woods system.

 

Representatives of the countries will meet in Beijing on Monday to sign an agreement of the bank, the Chinese Foreign Ministry said on Thursday. All the five BRICS countries are also joining the new infrastructure investment bank.

The agreement on the $100 billion AIIB will then have to be ratified by the parliaments of the founding members, Chinese Foreign Ministry spokesman Lu Kang said at a daily press briefing in Beijing.

The AIIB is also the first major multilateral development bank in a generation that provides an avenue for China to strengthen its presence in the world’s fastest-growing region.

The US and Japan have not applied for the membership in the AIIB.

However, despite US pressures on its allies not to join the bank, Britain, France, Germany, Italy among others have signed on as founding members of the China-led Bank.

Meanwhile, New Zealand and Australia have already announced that they will invest $87.27 million and $718 million respectively as paid-in capital to the AIIB.

The new lender will finance infrastructure projects like the construction of roads, railways, and airports in the Asia-Pacific Region.

Chinese President Xi Jinping will meet with heads of delegations from the prospective founding countries on Monday, the Ministry said.

The AIIB will have an authorized capital of $100 billion and the initial subscribed capital is expected to be around $50 billion.

The bank, which will be headquartered in Beijing, is expected to be officially established at the end of 2015.

Developing Asia needs to spend $8 trillion between 2010 and 2020 on national infrastructure, according to an estimate by the Asian Development Bank (ADB).

The ADB is dominated by Japan and the US.

The BRICS New Development Bank and the Asian Infrastructure Investment Bank (AIIB) are both seen as alternatives to US – led institutions like the ADB and the World Bank.

China, with $4 trillion in foreign exchange reserves, is pushing for the growth of its own multilateral bodies, including the AIIB, the BRICS Bank and a bank for the Shanghai Cooperation Organization, but also seeking to strengthen its voice at the World Bank and the International Monetary Fund.


Read more: http://dinarvets.com/forums/index.php?/topic/204705-57-countries-to-sign-china-led-bank-charter-on-monday/#ixzz3e7o4BuNE

Link to comment
Share on other sites

  • 2 weeks later...

Asian Investment Bank

 

 

         

Author: Yasser incumbent

07/08/2015 0:00

China has not only led by the world economic growth rate and continuous quest because the State Great most prominent are but I went to come Bjdidha adopt the establishment of Asian Investment Bank for the equivalent in activity of the International Monetary Fund and the World Bank and to become a strong competitor to US domination of the world's economies through it. 

The play China's important and powerful role in the world to create the sovereign balance on economic activity and thus will create serious competition contribute to make further concessions toward widening the benefits and gains that accrue to countries that deal with the IMF and the World Bank and ADB investment in the sense determine the monopoly of economic decisions in times of crisis and economic variables. 

So come invitations to join Iraq to Asian investment to its proximity to the reality of the economies of Asian countries and the reality of their peoples Bank, eight need for Iraq to many direct investments might find in such a new bank who is looking for competitive investments and soft terms and encouraging. 

the most prominent encourages and invites to join is that the investment bank aimed at infrastructure, this What the country lacks him for many reasons in the forefront of the lack of attention to such strategic projects or weakness in the implementation of a number of them, which I tried some quarters fought in addition to the demise and digging in existing projects. 

But going into this area need to be focused study of the importance of joining or not and this requires familiarity with visions experts and specialists in this field, for objective considerations in Iraq put the current is unlikely to enter into areas dominated by international conflicts related to the acquisition of international economic decisions, especially since there are indications of this kind, although the competition for playing such a role is featured. The presentation Aq has obligations as other countries that deal with the two institutions Wars Monetary Fund and World Bank, so it requires caution when the lineup to compete with institutions, but that does not prevent from looking at the subject from another angle related to the supreme interests of the country when taking such a step, so I wanted to focus on is this kind of case . 

we find it necessary to organize a round table organized by the Central Bank in cooperation with the Iraqi private banks association to discuss the benefits and risks of foot to join or even before thinking about doing with the participation of economists, academics and well versed in monetary and banking policy and the need to listen to the vision of external relations in this regard to the questionnaire weights accept Aorvd to join Asian Investment Bank.

Link to comment
Share on other sites

I'm thinking the USD is in trouble.  Thanks to FATCA and how PO'd the rest of the world is with our gov't, I can see China playing to placate them with promises of easier financial relations.

  • Upvote 1
Link to comment
Share on other sites

  • 3 weeks later...
  • 2 months later...
Japan offers conditional support for the accession of the yuan to a basket of currencies
October 27, 2015
 
%D8%A7%D9%84%D9%8A%D9%88%D8%A7%D9%861.jp

Our economy / Tokyo

Showing Japanese Finance Minister Taro Aso, on Tuesday, conditional support for the accession of China's yuan currency to the International Monetary Fund basket.

Aso told a press conference "the International Monetary Fund will conduct audits regarding the fulfillment of the Chinese yuan to the conditions of accession to the basket of currencies."

He said "a good thing to see an increase in the number of currencies that are considered trustworthy" enough to join the SDR basket for the International Monetary Fund.

Informed sources told Reuters that is expected to give the IMF experts to approve the inclusion of the Chinese yuan in the standard basket of currencies of the Fund, which lays the foundations for a positive decision from policy makers IFC.

 

  • Upvote 1
Link to comment
Share on other sites

  • yota691 changed the title to "It's A Huge Story": China Launching "Petroyuan" In Two Months

Join the conversation

You can post now and register later. If you have an account, sign in now to post with your account.
Note: Your post will require moderator approval before it will be visible.

Guest
Reply to this topic...

×   Pasted as rich text.   Paste as plain text instead

  Only 75 emoji are allowed.

×   Your link has been automatically embedded.   Display as a link instead

×   Your previous content has been restored.   Clear editor

×   You cannot paste images directly. Upload or insert images from URL.

Loading...
 Share

  • Recently Browsing   0 members

    • No registered users viewing this page.
×
×
  • Create New...

Important Information

By using this site, you agree to our Terms of Use.