Russia Returns Favor, Sees Chinese Yuan As World Reserve Currency

Tyler Durden's picture




 

Following China's unwillingness to vote against Russia at the UN and yesterday's news that China will sue Ukraine for $3bn loan repayment, it seems Russia is returning the favor. Speaking at the Chinese Economic Development Forum, ITAR-TASS reports, the Chief Economist of Russia's largest bank stated that "China's Yuan may become the third reserve currency in the in the future."

 

Managing Director and Chief Economist of investment company Sberbank Yevgeny Gavrilenkov said at the 15th governmental Chinese economic development forum in the Chinese capital on Sunday (via ITAR-TASS):

"China’s yuan (renminbi) may become a third reserve currency in the world in the future"

 

"This forecast can be made on figures of domestic economic growth. Probably the country will keep high GDP growth rate and the GDP volume will increase to around 14-16 trillion U.S. dollars for a brief period of time, the indicators comparable to the European Union and the United States.

 

Meanwhile, Chinese securities are more attractive for the countries that have a surplus in economy, particularly the Middle East states; and China will obviously follow the path of securing the country’s assets,"

The forum which opened in the Chinese capital on March 22 discusses a broad range of issues of economic reforms and China’s stronger role as the second largest world economy. First Deputy Prime Minister of the Chinese State Council Zhang Gaoli, Managing Director of the International Monetary Fund Christine Lagarde and top managers of major world corporations participate in the forum as honorary guests.

Of course, as we noted previously, nothing lasts forever...

 [12]

 

and with Friday's "Petrodollar Alert" perhaps things are moving faster than many assumed.

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Sun, 03/23/2014 - 18:34 | 4583445 FieldingMellish
FieldingMellish's picture

The futures market will not stand for this. Now witness the power of paper and propaganda!

Sun, 03/23/2014 - 18:34 | 4583451 Soul Glow
Soul Glow's picture

Quick someone play some music while the ship sinks!

Sun, 03/23/2014 - 18:38 | 4583466 knukles
knukles's picture

Do you hear what I hear?
There's a leak somewhere.

Sun, 03/23/2014 - 18:40 | 4583479 0b1knob
0b1knob's picture

< Yuan for the money!

< Lets get ready to RUBLE!

Sun, 03/23/2014 - 18:41 | 4583480 Soul Glow
Soul Glow's picture

DXY flash crash monday?

Sun, 03/23/2014 - 18:47 | 4583498 cossack55
cossack55's picture

One can always hope.

Sun, 03/23/2014 - 18:51 | 4583516 El Oregonian
El Oregonian's picture

Putin to Obama: "Can you hear me now!?!".

Sun, 03/23/2014 - 18:54 | 4583520 bigdumbnugly
bigdumbnugly's picture

disturbing photo though.

is a zipper check warranted?

Sun, 03/23/2014 - 18:55 | 4583528 smlbizman
Sun, 03/23/2014 - 19:15 | 4583571 prains
prains's picture

thanks

 

like to hear Tyler in regards to this, too!

Sun, 03/23/2014 - 20:45 | 4583831 Unpopular Truth
Unpopular Truth's picture

In order to do start buying Russian gas, China would have to sell their US treasuries, dropping their price. They wouldn't EVER do that to us!!! /sarc/

Sun, 03/23/2014 - 21:49 | 4583991 Vampyroteuthis ...
Vampyroteuthis infernalis's picture

In the end does it really matter. If the Yuan is priced to the USD, is that not leaving the USD as reserve currency de facto? Drop the peg and things will change then.

Sun, 03/23/2014 - 19:11 | 4583583 fonzannoon
fonzannoon's picture

I saw that article today. I too find that ZH article bizarre. So all last year we read about the GLD holdings being dumped, 4 guys in a room in London with telephone's price fixing the market, Bloomberg articles admitting manipulation of bullion by the banks...JPM vaults being emptied....only to know change the story to it being China somehow managing to suppress prices....

 

Sun, 03/23/2014 - 19:14 | 4583593 prains
prains's picture

and supression by some exotic shadow banking scheme........not saying i understand the nature of the beast but it's not yet all adding up for me either

Sun, 03/23/2014 - 19:20 | 4583607 Angry White Dude
Angry White Dude's picture

Any reason that both explanations can't be correct(ish)? Both scenarios make sense to me. The West wants to suppress the price as part of sustaining the ponzi and the Chinese certainly want to take advantage of, if not contribute to, price suppression if you accept the premise that they are loading up on physical gold for strategic reasons.

Sun, 03/23/2014 - 19:25 | 4583628 IridiumRebel
IridiumRebel's picture

I'm sure there's a bullshit buffet we all get to have second to sixth helpings for....I'm just a schmoe like you. We are not privy to front running.

Sun, 03/23/2014 - 19:21 | 4583608 Winston Churchill
Winston Churchill's picture

JPM just sold their commodities unit.Gold rigging it being investigated in London

and Frankfurt. and this TBTF authored report comes out.

Could turn you into a conspiracy nut, not quite sure why the Tylers endorsed it though.

Sun, 03/23/2014 - 19:22 | 4583614 Angry White Dude
Angry White Dude's picture

<dupe>

Sun, 03/23/2014 - 19:15 | 4583594 IridiumRebel
IridiumRebel's picture

According to RATionalwiki.shit, ZH is "batshit crazy". If all of these fuckers are coming out to disinfo and redirect folks away from ZH I think they are doing something right.

Sun, 03/23/2014 - 19:16 | 4583598 fonzannoon
fonzannoon's picture

Or...on this particular article, they are actually batshit crazy. How many 8:30am slam downs do we have to see and $50 fed day knockdowns to realize maybe the simplest explanation is the right one.

Sun, 03/23/2014 - 19:19 | 4583602 IridiumRebel
IridiumRebel's picture

ZH isn't gospel, but they bring forth stories I'd never hear elsewhere. Are they sometimes wrong or looking too hard? Sure.

Sun, 03/23/2014 - 19:23 | 4583618 fonzannoon
fonzannoon's picture

I hear you, and I am always the dick when I go against them. But I only do it because when everyone agrees with them they are awesome. When everyone disagrees with them that means they must be doing something right. So in effect they are gospel. So I sometimes feel the need to point out that it is possible that sometimes they may just be either wrong, or changing the narrative for some strange reason. They still post good stuff, better than anything else out there.

Sun, 03/23/2014 - 19:27 | 4583635 IridiumRebel
IridiumRebel's picture

Even the dissenting opinion needs to be dissented against. +1

Sun, 03/23/2014 - 19:23 | 4583621 prains
prains's picture

eyes open

ears open

bum hole closed

it's the only way to operate these days

Sun, 03/23/2014 - 20:16 | 4583761 Kirk2NCC1701
Kirk2NCC1701's picture

No, ZH is not Gospel. It's better than Gospel: there's nothing in the Gospel that we could not have figured out by ourselves, but plenty in ZH we didn't and could not have figured out by ourselves.

P.s. the Gospel CONditions you to believe in unprovable invisible products, ZH teaches you to beware of them an their purveyors.

Sun, 03/23/2014 - 20:32 | 4583809 echoes
echoes's picture

Yeh, sort of how you believe in invisible voodoo bit'coins'. Just sayin, yo lolz

Mon, 03/24/2014 - 03:46 | 4584668 Independent
Independent's picture

Hey Echoes I know why you wear the bag and hear echoes.  If you take off the bag there is nothing there LOL

Listen you anencephalic twat, the only voodoo is what Ill DO to YOU when I bend you over and ram you so hard your other end will be like a loudspeaker in a horror picture flick

Lay off the Captain or I may have to work you over some more...

And all the child molesting priests that downvoted the captain better hope I dont find you and bury my Cowboy boots with spurs all the way to my knees into your bungholes

Mon, 03/24/2014 - 13:51 | 4586169 Kirk2NCC1701
Kirk2NCC1701's picture

Anyone can cherry-pick, not everyone can really pay attention, it seems.  Note that I said untestable invisible product.

Lots of things in the universe are 'invisible' to the naked eye,  But they can certainly be made visible or tested with man-made tools.  Electronic data (bitcoin or otherwise) can and is accessible and subject to testing, creating or deleting.  "God" or "gods"... not so much.

Optional:  We digress, but... I say the following, not to offend, but in the sincere hopes that at least some people/sheeple will cast aside childish things and worn out hand-me-down superstitions and fables.

At this point it is fair and accurate to say that "God did not make make man".  Rather, "Man made God/gods".  It is FAR more credible that Space Aliens with impressive tech and space ships (like the Enterprise)  had a "hand" in our evolution, and that they were worshipped as "gods" by primitive, pastoral tribesmen.  If anything, this Yahweh/Elohim character reminds me of some Klingon assholes I know -- so to speak:  Arrogant, insecure, obnoxious and erratic.  Kinda like some guys with Money & Toys whom I know.

It's time to put away primitive and childish things, and see things clearly as they truly ARE.  See "God's God"  http://www.youtube.com/watch?v=ODetOE6cbbc

p.s. Have you ever noted how it is so easy for religulous types to question modern models, postulates or theories, but their brains are totally immobilized from usage, when it comes to ancient Literature?  Literature of unprovable lineage, accuracy, etc, etc., and written by primitive people with less education than a 5th grader.  Why believe that ancient literature, but not believe modern concepts?

pps.  Don't Feed the Ducks.  Don't Feed the Animals.  And... Don't feed the Shamans & Shills.  Make them get a real job.

Sun, 03/23/2014 - 21:07 | 4583881 Shrapnel
Shrapnel's picture

Thank you for posting this link.

Sun, 03/23/2014 - 21:40 | 4583963 WillyGroper
WillyGroper's picture

Read it too.

Some of the comments rather scathing.

Sun, 03/23/2014 - 23:05 | 4584246 Ifigenia
Ifigenia's picture

naughty zh.

Sun, 03/23/2014 - 19:12 | 4583585 prains
prains's picture

disturbing photo though.

is a zipper check warranted?

 

if they were in middle school somebody would have a boner by now in this slow dance

Sun, 03/23/2014 - 21:23 | 4583926 Ifigenia
Ifigenia's picture

the photo just show Putin is not homophobic. One more msm myth down.

Sun, 03/23/2014 - 22:28 | 4584120 pigs-n-space
pigs-n-space's picture

Nope, Im on the golf course and I am busy, call back. Wow one POS president. 

Sun, 03/23/2014 - 18:47 | 4583499 infiniti
infiniti's picture

Yes, the currencies of US's largest trading partners are going to soar tomorrow  /sarc

Sun, 03/23/2014 - 18:53 | 4583514 Soul Glow
Soul Glow's picture

That would be in the Fed's favor short term - long term they are fucked.  Remember the Fed/UST are in the Import/Export business and they import money now when their bonds are bid on and export dollars at a later date, with the exchange rate fixed by them.  

When a central bank is faced with deflation they should lower the value of the currency to increase exports.  Econ 101.

Sun, 03/23/2014 - 18:43 | 4583483 SWRichmond
SWRichmond's picture

Attack!  Send in the protesters!

Nuland, call your office!

Sun, 03/23/2014 - 19:39 | 4583664 williambanzai7
williambanzai7's picture

Hey, don't step on my Red White and Blue Suede golf shoes...

Sun, 03/23/2014 - 23:46 | 4584354 bankerbackbacon
bankerbackbacon's picture

The Lodges want another culling. There is nothing Americans hate more than a reserve currency rethink.

..

Sun, 03/23/2014 - 18:46 | 4583496 McMolotov
McMolotov's picture

This is one of the rare times that calls for the dramatic chipmunk:

http://www.youtube.com/watch?v=a1Y73sPHKxw

Sun, 03/23/2014 - 18:56 | 4583536 rsnoble
rsnoble's picture

The ships already sank and we're all stranded on a island full of crazy bastards.

Sun, 03/23/2014 - 20:46 | 4583833 americanspirit
americanspirit's picture

Nearer my God to thee

Sun, 03/23/2014 - 18:44 | 4583489 MeMongo
MeMongo's picture

Ho lee fuke....sum ting wong!:-)

Sun, 03/23/2014 - 23:52 | 4584368 rubiconsolutions
rubiconsolutions's picture

Putin to Li Keqiang - "Yuana be the world's reserve currency?"

Sun, 03/23/2014 - 18:34 | 4583446 Soul Glow
Soul Glow's picture

Goodbye dollar!

Sun, 03/23/2014 - 18:37 | 4583465 Canadian Dirtlump
Canadian Dirtlump's picture

We need Mike Rogers and John "walnuts" McCain to start campaigning to provide taiwan with heavy weapons to stare down this menace now that they have planted the seeds for ww3 in ukraine.

 

This threat to national insecurity can't be ignored.

Sun, 03/23/2014 - 18:49 | 4583507 McMolotov
McMolotov's picture

We should also go ahead and put a military base on the Senkaku Islands, just to be safe.

Sun, 03/23/2014 - 19:03 | 4583552 knukles
knukles's picture

Manned exclusively by the most experienced and tenacious old experienced warriors amongst the brave, Captain John McCain and in the best interests of fidelity, democracy, equality, fraternity and social justice, supported with and as his bunk mate, his happy warrior sidekick, Lindsay Graham.

"Never fear, Whatthefuck is here!"

Sun, 03/23/2014 - 19:12 | 4583584 Lore
Lore's picture

Yeah, McCain has a purple heart or something on the back of his shorts.  

Picture the two of them locked up in the stocks. It would be a good day for Real America.

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