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UK Hints At Next Reserve Currency, To Issue Chinese Yuan-Denominated Bond

Tyler Durden's picture


Yuanification continues around the world. As The USA attempts to corral its allies in a 'broad coalition', an increasing number of people - including domestic economic policy advisors - are shifting away from the USD as primary reserve currency. However, the move by British Chancellor of the Exchequer George Osborne, announced Friday, is likely the most notable yet in the world's de-dollarization. As Xinhua reports, the British government intend to be the first nation (ex-China) to issue Renminbi denominated bond and to use the proceeds to finance the government's reserves of foreign currency. Osborne described this dialogue outcome as "a historic moment" and a statement of British confidence in the potential of the RMB to become "the main global reserves currency".


As Xinhua reports,

British Chancellor of the Exchequer George Osborne announced Friday that the British government intend to issue a Renminbi denominated bond and to use the proceeds to finance the government's reserves of foreign currency.


"I can now announce that the UK government intend to be the first national government outside of China to issue a bond in China's currency. We issued bonds in U.S. dollar before, now we will be issuing a bond in RMB," said Osborne in the press release of the Sixth China-UK Economic and Financial Dialogue (EFD).


Chinese Vice Premier Ma Kai and Osborne concluded the meeting of the Sixth China-UK Economic and Financial Dialogue in London.


Osborne described this dialogue outcome as "a historic moment" and a statement of British confidence in the potential of the RMB to become "the main global reserves currency".


"And let me be clear, as China becomes a bigger and bigger part of the world economy, their currency is going to be used around the world. We here in Britain understand that, and we want us to be the first country in the west to seize the opportunities that it will bring," declared Osborne.


Meanwhile, the issuance of Chinese currency bond means jobs and investment in Britain, which the government's long-term economic plan is all about, noted Osborne.

*  *  *

With friends like that, does the USA need more enemies? Time for some Uk sanctions...

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Mon, 09/15/2014 - 12:43 | 5218977 Dame Ednas Possum
Dame Ednas Possum's picture


Gold bitchez....same as the Pharaohs


Mon, 09/15/2014 - 12:44 | 5218988 ParkAveFlasher
ParkAveFlasher's picture

But I thought the English liked us.

Mon, 09/15/2014 - 12:52 | 5219026 whotookmyalias
whotookmyalias's picture

I would expect the announcment of capital controls and limitations on the amount of Yuan UK citizens can own to coincide with this move.

Mon, 09/15/2014 - 13:06 | 5219060 BaBaBouy
BaBaBouy's picture

Battle Of The Paper Virtual Harddrive Contained FIATS ...

GOLD Will Be (Is) The Ultimate Paper Fiats Backstop ...

Mon, 09/15/2014 - 13:12 | 5219087 XitSam
XitSam's picture

US declares war on Great Britain in 3..2..1..

Mon, 09/15/2014 - 13:39 | 5219101 Pinto Currency
Pinto Currency's picture



UK recognizes power of gold exchange Yuan with impending opening of the FTZ gold exchange.

Thanks to Paul Volcker, David Rockefeller, Henry Kissinger, George Shulz for scuttling the USD in 1971.

The world will come to realize the chaos you've created.

Meanwhile, the skipper (Osborne) is whistling while he is pumping-up a provisional lifeboat so everything must be okay.

Mon, 09/15/2014 - 13:59 | 5219248 Kaiser Sousa
Kaiser Sousa's picture

"The People’s Bank of China (PBOC), the country’s central bank, announced on Monday that it had authorized the Bank of China (BOC) as a clearing bank for RMB business in Paris.

The PBOC made the decision in accordance with an MOU signed with the French central bank La Banque de France to help turn the city into an offshore RMB center.

Competition is fierce among Europe’s major financial centres, Frankfurt, London and Luxembourg to trade in China’s currency.

Beijing is keen on substituting the US dollar with the yuan in all of China’s trade with other countries. The Chinese currency now trades directly with the Japanese yen, the Australian dollar, the Brazilian real, the EU’s euro, the New Zealand dollar and many other currencies.

BOC became the RMB clearing bank in Frankfurt in June while China Construction Bank was authorized to be the RMB clearing bank in London.

China stepped up plans to increase the international use of its currency last October with an agreement between the European Central Bank and the PBOC to swap euros and yuan.

The PBOC is yet to announce the RMB clearing bank in Luxembourg."

Mon, 09/15/2014 - 14:19 | 5219336 Pinto Currency
Pinto Currency's picture



Senior Obama official to Kyle Bass (believed to be Timothy Geithner):  We're just going to kill the dollar.


Everybody knows.

Mon, 09/15/2014 - 14:28 | 5219382 MalteseFalcon
MalteseFalcon's picture

When the UK and Israel jump ship (and they are going to), it's all over.

Mon, 09/15/2014 - 16:44 | 5219934 Muh Raf
Muh Raf's picture

What a load of old b*ll*cks. This ain't the first UK move towards Rinmibi denominated bonds. I assume Cameron just an uninformed gobsh*te which is why he's happy to parrot this fakery. The London Stock Exchange has been listing Rinmibi denominated bonds since 2010, however they weren't very popular. A link to a spreader of the existing bonds can be found at http://www.londonstockexchange.com/specialist-issuers/debts-bonds/renmin...


Mon, 09/15/2014 - 23:17 | 5221231 Pinto Currency
Pinto Currency's picture



I believe the UK is issuing the bonds in Yuan vs. listing them for trading.

Mon, 09/15/2014 - 14:10 | 5219306 SMG
SMG's picture

When the derivatives blow it's all going away Yuan, Franc, Ruble, Euro, Dollar, it doesn't matter.  All national paper, even if partially gold backed (and governments never cheat on the paper to gold ratio right?) will be destroyed.   It all a big set up for the NWO world currency.  So go ahead and issue Yuan bonds, why the heck not?  It's all going to evaporate in the end.

Mon, 09/15/2014 - 16:26 | 5219876 SDShack
SDShack's picture

Yep, it's a fiat ponzi system designed by the elites for the elites at the expense of the masses. They will prop up the ponzi until it eventually collapses.  Then like any true sociopath faced with the day of reckoning, they will either commit suicide, flee and try to take as much wealth with them into hiding as possible, or they will turn on each other in a last gasp to either take it all or burn it all. Suicide is almost never chosen by the highest sociopaths, so my guess is a combination of the other two options. We're already seeing the elites turn on each other with the currency wars and regional proxy wars all flaring up all around the globe at once. The aggressive (but dumber) elites are being set up to kill each other off by the smarter ones. The elite herd is going to be culled, and the smart ones will take as much plunder as possible into hiding to re-emerge after the world wide collapse and reset the NWO. 

Mon, 09/15/2014 - 12:58 | 5219046 Tsar Pointless
Tsar Pointless's picture

Silly rabbit. NOBODY likes us.

Mon, 09/15/2014 - 13:09 | 5219078 Flagit
Flagit's picture


But I thought the English liked us.


Dear USA,

No hard feelings there, just returning the favor love.

Most sincerely,

The British

Mon, 09/15/2014 - 14:56 | 5219484 goldhedge
goldhedge's picture

Exactly.  You gotta earn respect.


Mon, 09/15/2014 - 13:18 | 5219113 KnuckleDragger-X
KnuckleDragger-X's picture

Countries don't have friends they have allies but President Zippy is the poster boy for fecklessness. Nobody trusts the USA to do anything but screw things up even worse than it already is as demonstrated by our new 'coalition of the willing' that no country wants to be near.

Mon, 09/15/2014 - 16:35 | 5219900 KrugerrandFan
KrugerrandFan's picture

We like you, but your Gov sucks donkey balls.

Mon, 09/15/2014 - 12:52 | 5219029 Renewable Life
Renewable Life's picture


The British Empire!!!!  How far you have fallen!  

These Western Kenyesian fools REALLY do believe in their paper wealth and paper tiger militaries, dont they? England might be the ONLY Country on Earth MORE delusional then the Americans right now!

Mon, 09/15/2014 - 14:37 | 5219407 Rubicon
Rubicon's picture

you must be Scottish. 

Mon, 09/15/2014 - 15:18 | 5219569 Renewable Life
Renewable Life's picture

Hardly brother, although I hope the Scots defeat the British empire of Kenyesian bullshit without firing a shot, my direct bloodline had to defeat them with blood 200+ ago!!

And yes I'm aware we have been re-enslaved circa 1914 and 1971/72 but don't worry Americas second revolution is around the historical corner, but I wish the Scots well, because I believe in Freedom and Independence above all else!

You can keep your fake economic prosperity thru debt, if you like so much:)

Mon, 09/15/2014 - 13:29 | 5219141 ArdentArgent
ArdentArgent's picture

Don't mock nickel transactions.  Nickels are the only real circulating money in the US today in that their face value is close (sometimes higher, sometimes lower) than their metallic value. http://www.coinflation.com/  They're the equivalent of silver dimes and quareters in 1964--and you know how that story ended.  Hoard them while you can!  Kyle Bass is http://www.coinweek.com/bullion-report/the-nickel-hoarding-billionaire/

Mon, 09/15/2014 - 17:30 | 5220058 Save_America1st
Save_America1st's picture

that's right.  And nickel will only go up in cost/value as time goes by.  I've been stacking the hell out of nickels for the last couple years.  Go to the bank with 50 bucks and swap it for rolls of nickels and stash them away.  Do that every couple months or so.  Not everyone can buy a million dollars worth of nickels like Bass did.  But we can stack them regularly and one day they'll be a helluva lot more usable and valuable than any bullshit paper. 

CON-gress is trying to pass a bill to stop using nickel in nickels...they'll be made of some bullshit that nobody wants.  That will make the old nickels even more valuable just as with pre-1965 Constitutional Coinage.  People will want them instead of the fake crap.

Mon, 09/15/2014 - 12:45 | 5218986 nope-1004
nope-1004's picture

Did the brits do this without the Feds' input?  I doubt it.  Perhaps a setup to control the Yuan going forward.  I don't trust the insolvent Western banks at all, nor should the Chinese.

Mon, 09/15/2014 - 12:47 | 5219007 sushi
sushi's picture

The UK will use the proceeds of these bond sales to purchase US dollar bonds.


Mon, 09/15/2014 - 12:48 | 5219008 Tsar Pointless
Tsar Pointless's picture

Don't fret. The Chinese know what they're doing.

Mon, 09/15/2014 - 12:44 | 5218987 starman
starman's picture

Hoooly foock!

Mon, 09/15/2014 - 12:46 | 5218994 _ConanTheLibert...
_ConanTheLibertarian_'s picture


Mon, 09/15/2014 - 12:46 | 5218995 NoWayJose
NoWayJose's picture

The problem is that the bonds may be in Yuan, but they are being backed by a country with a huge debt, huge dependency class, and little hope for their economy.

Mon, 09/15/2014 - 13:04 | 5219062 JohninMK
JohninMK's picture

You mean like the UK.

Mon, 09/15/2014 - 13:44 | 5219185 gmrpeabody
gmrpeabody's picture

You mean that persons unknown may actually want those bonds to crash...?

Mon, 09/15/2014 - 21:27 | 5220890 petkovplamen
petkovplamen's picture

You are describing USA perfectly.

Mon, 09/15/2014 - 12:46 | 5218996 LawsofPhysics
LawsofPhysics's picture

What part of all fiat go to zero, don't they understand?

Mon, 09/15/2014 - 13:23 | 5219123 Glasnost
Glasnost's picture

The part of Shanghai Gold Exchange

Mon, 09/15/2014 - 14:48 | 5219456 LawsofPhysics
LawsofPhysics's picture

Regardless of the "fiat du jour", it's good news for holder's of physical.

not so much for any holding any kind of fiat, including yuan.

Mon, 09/15/2014 - 12:47 | 5219001 Glass Seagull
Glass Seagull's picture



So...UK going short yuan eh?

Mon, 09/15/2014 - 12:47 | 5219002 Tsar Pointless
Tsar Pointless's picture

Terrorists. Bomb them pronto, before Scotland leaves and takes its oil reserves with it!

Mon, 09/15/2014 - 12:49 | 5219015 J Pancreas
J Pancreas's picture

Aaaannnddddddd London takes the lead over Frankfurt, NYC, and Paris!!


Amuurrica loses regardless.

Mon, 09/15/2014 - 12:53 | 5219027 Debeachesand Je...
Debeachesand Jerseyshores's picture

Another reason why Scotland should disengage themselves from the UK......

Mon, 09/15/2014 - 12:54 | 5219033 q99x2
q99x2's picture

That didn't take long. Arrest Goldman Sachs

Mon, 09/15/2014 - 12:54 | 5219034 ThroxxOfVron
ThroxxOfVron's picture

I seem to remember that billions of dollars in securites were created by an American investment bank at the request of a client who wished to SHORT a certain market and required securities to bet against to do so.

Of course when those securites were sold to investors they weren't informed that the entire reason that the securities had been created was that a very large and savvy player had requested their creation specifically to bet against the underlying assets...

Mon, 09/15/2014 - 13:16 | 5219104 LostandFound
LostandFound's picture

What the fuck does that mean in English?

Mon, 09/15/2014 - 13:20 | 5219117 Al Huxley
Al Huxley's picture

GS created US housing market collateralized debt and various other derivatives, which they then sold to less informed (or more optimistic) 'investors' as a means of betting against the US subprime bubble.

Mon, 09/15/2014 - 13:34 | 5219144 hobopants
hobopants's picture

Google John Paulson + mortgage backed securities.

Mon, 09/15/2014 - 13:36 | 5219158 LostandFound
LostandFound's picture


Mon, 09/15/2014 - 12:56 | 5219044 joego1
joego1's picture

Is Obumerang is on the red phone to Osborne?

Mon, 09/15/2014 - 13:01 | 5219053 Inthemix96
Inthemix96's picture

Britain is beyond bankrupt, its insolvent, period.

Britains 'Chancellor Of The Exchequer' has only held one job in his entire, in-bred, over priviledged life, same as the rest of them mind, can you guess what George 'Gideon' Osbourne has ever really done as a 'Real Employee'?

He was paid to fold towels.  Aye, paid to fold towels.  We are now in 1.5 trillion £s worth of debt, twice as much as what we were when this co-alition of the deprived took over.



Mon, 09/15/2014 - 13:00 | 5219054 GoldenDonuts
GoldenDonuts's picture

Can someone tell my why anyone buys government bonds?  They take the money with no intention of doing anything productive with it.  Use it to replace the taxes that they know that they cannot collect, and intend never to pay the principle back.   It seems to me to be the largest ponzi scheme in the history of the world.

Mon, 09/15/2014 - 13:11 | 5219085 kowalli
kowalli's picture

payment of tribute in the modern world. Ages ago it was gold chests in carts

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