I think this is as good a place as anywhere to post this.....
This is a comment posted to a ZeroHedge article ... I am copying and pasting the whole thing ... really excellent.. [author ... 'Dubaibanker']
China has been making very strong strides in the world of international finance for more than 5 years.
Some of the major steps that I can recollect are:
- Somewhere in 2009 : Allow USD bonds by large Chinese companies to be issued for foreigners to create a USD bond yield curve.
- Somewhere in 2010: Allow foreigners to own CNH , offshore yuan currency.
- Since 2008: Over 32 agreements have been signed with various Govts to allow them to hold Chinese Yuan for payment purposes by their local companies to China. Russia is already accepting Yuan as payment currency for oil and is the now the largest supplier of oil to the largest oil importing country in the world (China)!
WEAPONIZATION OF FINANCE: Russia is turning to the Chinese yuan
http://www.*.com/russia-slaps-down-the-dollar-2015-6
Russia overtakes Saudi Arabia as largest supplier of oil to China
http://www.theguardian.com/business...takes-saudi-arabia-largest-supplier-oil-china
- Since 2009, when zero percent of global trade was settled in yuan. Today over 30-35% of global trade is settled and paid for in yuan.
Half of China's total trade to be settled in yuan by 2020 - HSBC CEO
http://uk.reuters.com/article/2015/03/26/uk-china-yuan-offshore-idUKKBN0MM0EL20150326
Chinese Yuan Is Now Fourth Most Common Global Payment Currency, Behind US Dollar, Euro, British Pound
http://www.ibtimes.com/chinese-yuan...ayment-currency-behind-us-dollar-euro-2128912
- Since 2013: Shanghai Free Zone was established and 3 more added in 2015. No rules for inward/outward payments apply here, i.e. no capital controls or any restrictions whatsoever.
China's Pilot Free Trade Zones
Dawn of a new era
http://www2.deloitte.com/cn/en/pages/tax/solutions/china-shanghai-pilot-free-trade-zone.html
- Since 2014: Over 60 Central Banks from various countries have been authorised by China to hold Yuan in their Reserves.
Since last month, China has even allowed foreign central banks to hold the 'onshore' yuan for the first time as they remove capital controls.
China Opens Onshore Currency Market to Foreign Central Banks
http://www.bloomberg.com/news/artic...eign-central-banks-in-onshore-currency-market
- In late 2014: Shanghai-HK Stock connect allowed foreigners to invest in China and Chinese to invest overseas in HK.
Now, even London is looking to get stock trading with China.
Britain, China eye stock connect, nuclear and rail deals
http://uk.reuters.com/article/2015/09/21/uk-china-britain-idUKKCN0RL03520150921
- In 2015: China opened trading of gold inside China and joined the London Association. The pricing of gold in yuan should start any day now.
China emerging as a major gold trade player
http://asia.nikkei.com/Markets/Commodities/China-emerging-as-a-major-gold-trade-player?page=1
Bank of China Joins Auction Setting Gold Prices in London
http://www.bloomberg.com/news/artic...to-participate-in-lbma-gold-pricing-lbma-says
- In Sept 2015: China allowed oil to start trading in yuan.
Like it or not, China's crude
oil futures will be a global benchmark
http://www.reuters.com/article/2015/09/10/china-crude-futures-idUSL5N11F04A20150910
Want to Trade China
Oil Futures? Here's What You Need to Know
http://www.bloomberg.com/news/artic...hina-oil-futures-here-s-what-you-need-to-know
Thus, China has become the first country in the world, aside from the western dominated cities of London, NY and Chicago (i.e. US and UK) to EVER start trading of gold and oil in a non USD currency.
All the things that are described above were solely done by the US dollar/ JPY/ GBP / EUR for the last 50 years since the 1965 agreement when US-Egypt-Saudi agreed to sell oil solely in USD.
Now, there is just one more step between the USD collapse and the rise of yuan.
That will be on the date when Saudi Arabia/OPEC will announce that they shall or can accept Yuan as a currency for payment on sale of their oil. Russia is already doing so.
Saudi has lost a major market share by not accepting Yuan as payment and will continue to hurt at a time when it's reserves and income from sale of oil is down.
Saudi Arabia needs to accept yuan as a payment currency else by next year it's share of oil exports will decline further in China. US imports from Saudi Arabia are at 1990 levels in 2015 which is a loss of all growth over the last 25 years! Saudi has lost market share both in China as well as USA, hence does not very many options left at it's disposal to get it's economy in order and under control.
http://www.eia.gov/dnav/pet/hist/LeafHandler.ashx?n=pet&s=mttimussa2&f=a
One option is to depeg the currency and another is to accept yuan. Both are very difficult options to choose from. Because both have a variety of difficult and long term implications.
But choose they must! Because their economic survival in the medium and long term is at stake.
Oil decline has been very ruthless and is down for the longest period in history for over 16 months from it's peak at USD 110.53 in June 2014. This sustained decline in the price of oil is compounded by the fact that the market share in the two largest economies in the world has shrunk by over 35% approx in the last 10 years and is hurting the Saudis badly.
In the end of Aug 2015, there was a meeting between top middle Eastern leaders and Moscow/China about 2 things 1) Syria and 2) dealing of oil in yuan.
We have now seen what happened in Syria where Russia has taken charge and is making a success out of it. I expect much more peace in the next few years in Syria, Iran and the wider Middle East but with some short term pain.
As of today, the Crown Price of Abu Dhabi and the Defence Minister of Saudi (second trip to Moscow) are meeting the Russians and they are discussing some very important things!
Saudi defense minister to come to Moscow to compromise on Syria
- See more at:
http://english.pravda.ru/news/world...minister_russia_syria-0/#sthash.jlKci9Ug.dpuf
However, China keeps moving ahead on its own speed....and the most important part of for this message is below.
Effective, Oct 8, 2015, the alternate system to USD/EUR has arrived!
China launched a clearing system which is an alternative to the SWIFT system which is so familiar to all of us for USD/EUR clearing and money transfer purposes.
This system will have no US sanctions (thus is very helpful for Iran, Russians and anyone else who deserves privacy) and wishes to move away from the US (which is a lot of countries) 
China's international yuan payment system pursues world finance
cips china
This is a very big change in the world of finance, as we know it....and one of the last steps towards making Chinese currency more important because it facilitates easy transfer of money between any 2 countries or companies or individuals who choose to use yuan as their transfer currency.
The new king currency of the financial world is gradually rising......and replacing the dominating currencies of the era gone by.
Welcome to the new financial world dominated by the Chinese yuan!
The article to which this comment belongs is...
http://www.zerohedge.com/news/2015-10-11/dollar-chinas-financial-war
