Economic News From Deepin Moments and Heresy Financial 11-10-2022
The era of de-dollars is accelerating! More than 60 countries have enabled RMB settlement
Deepin Moments: 11-10-2022
Argentina has publicly fired the first shot at de-dollarization, starting to use RMB (short for renminbi or ) for trade settlement, a move that is undoubtedly a head-butt for Biden, who is currently in the midterm elections in the United States.
CCTV news, Argentina RMB clearing bank service launch ceremony, held in the Argentine capital Buenos Aires. So far, Argentina will directly adopt RMB for settlement in its trade with China.
The establishment of the RMB clearing mechanism will facilitate cross-border transactions between enterprises and financial institutions of both countries and can further promote trade and investment facilitation.
RMB is the official currency of the People's Republic of China[note 1] and one of the world's most traded currencies, ranking as the fifth most traded currency in the world as of April 2022. https://en.wikipedia.org/wiki/Renminbi
Japan Dumping Treasuries at Record Pace
Heresy Financial: 11-10-2022
Japan's foreign reserves fell by a record amount in October, marking three months straight of their foreign reserves falling. This comes after September, which is when they started intervening to save their currency.
As we've talked about a few times, their currency has been virtually failing and it has been falling versus other currencies like the dollar extremely quickly.
This prompted them to intervene on the 22nd of September for the first time in years to try and prop up the value of their yen, which ultimately failed and caused them to have to intervene again about a month later on the 21st of October.
Now, in order to intervene in your currency's decline, which means you have to be selling something, so you have the purchasing power to buy back your own currency. You can't buy back your own currency with your own currency. There's got to be an exchange going on.
Hence, ‘foreign exchange’. What we're seeing here is they’re selling reserves of foreign assets and then using purchasing power from that to buy back the currency here. When you buy something back and add that which buying pressure is going to bid up the price and stop the price decline.
Timecodes
0:00 Japan’s Foreign Reserves Fall for Third Month Straight
1:04 Japan Sells off its Reserves
2:43 Japan Trying to Sell Off US Treasuries
4:49 A Problem That is Still to Come