Part 2:
Mountainman: Interesting WS.......The HISTORY of De La RUE......And Their {PRINTING DEALS}.....Around the (TIME FRAME) of Executive Order #13303.....
W/Iraq's DINAR being Printed Shortly thereafter!!!!!!!............
ALL is ALWAYS {PLANNED} in Advance Prior to it's Implementation.....{THINGS}.....Have "BEEN" ......Shall We say, In the WORKS......and WHAT a DEAL they Made.......Hmmm
Blessings,Mountainman (8)=New Beginnings
Walkingstick: Panama Papers: Currency maker De La Rue offered payoff for its India deal De La Rue authorised 15% commission to agent in India.
....
Mountainman: Interesting WS.......The HISTORY of De La RUE......And Their {PRINTING DEALS}.....Around the (TIME FRAME) of Executive Order #13303.....
W/Iraq's DINAR being Printed Shortly thereafter!!!!!!!............
ALL is ALWAYS {PLANNED} in Advance Prior to it's Implementation.....{THINGS}.....Have "BEEN" ......Shall We say, In the WORKS......and WHAT a DEAL they Made.......Hmmm
Blessings,Mountainman (8)=New Beginnings
Walkingstick: Panama Papers: Currency maker De La Rue offered payoff for its India deal De La Rue authorised 15% commission to agent in India.
....
The world’s largest commercial banknote maker, De La Rue, had contracted a New Delhi businessman to help it bag tenders in India in return for a 15 per cent commission, besides significant amounts as out-of-pocket expenses towards marketing services, Mossack Fonseca (MF) papers accessed by The Indian Express show.
De La Rue International Limited, trading as Portals, entered into an Agency Agreement with Aphra Consultants SA on April 1, 2002, through which Aphra was appointed non-exclusive consultant to introduce business opportunities for De La Rue in South East Asia, including India.
Aphra was an offshore entity based in Panama and its final beneficial owner was Somendra Khosla, whose address is specified in the MF papers as D-984, New Friends Colony, New Delhi 110065. Portals, which has been supplying banknote paper to the Bank of England since 1724, was acquired by De La Rue in 1995. The agreement was in effect at least until June 2008, the MF papers show.
On August 15, 2002, four-and-a-half months after the Agency Agreement was signed, De La Rue Managing Director James Hussey wrote to Aphra, amending the agreement to allow Portals to authorise a payment of £ 500,000 (Rs 3.74 crore @ Rs 74.82 to a pound as on August 15, 2002) to the company.
“In recognition of the significant costs incurred since the last banknote paper tender was held in India (traveling to and from Europe, sales conferences, marketing brochures, etc), Portals is prepared to authorise a payment of UK Pounds 500,000 at a mutually agreed time,” Hussey said in the letter.
On April 1, 2003, the terms of the Agency Agreement were renewed by De La Rue’s Director of Sales Michael Wilkinson, providing for a 15 per cent commission to Aphra for an initial order of goods from a customer after the payment had been made.
In subsequent years, De La Rue bagged several tenders floated by the Reserve Bank of India for the supply of banknotes — which are referred to as “India Banknote Contract 2003” and, in another instance, as “second part (2005) of the India Banknote Paper Contract” in the internal board meeting memos of Aphra Consultants SA.
The Portals-Aphra Agency Agreement of April 1, 2003, which sets the terms of engagement, mentions only the name of the company (Aphra). But the certificate of incumbency available in the MF files shows that the ultimate beneficial owner of Aphra, at least until September 2009, was Somendra Khosla.
In July 2010, De La Rue messed up an order for high-quality banknote paper from RBI. The following month, its MD, James Hussey, under whose watch the Agency Agreement was signed with Aphra in April 2002 and who had amended the agreement to authorise an extra payment of £500,000 to Aphra in 2002, quit.
The Indian Express physically verified Khosla’s New Friends Colony address. When first contacted 10 days ago, he said he was on vacation and would respond during the weekend. When contacted again, Khosla said, “I don’t want to share any information. We do not share business information.” A detailed email sent to him on March 28 and couple of text messages subsequently did not elicit a response.
An email was sent to Brunswick (Financial PR), listed as a media contact for De La Rue, on March 28, and again on April 1. Three days later, Eden Yates, a Brunswick Group executive wrote back, “Thanks again for getting in touch with us. We are still looking into this and will get back to you in due course with our response, but as you know, your queries relate to a period some years ago.” Brunswick Group did not respond to the queries until Tuesday evening.
Incidentally, Khosla, though the beneficial owner of Aphra Consultants, entered into a loan agreement with the company on March 31, 2004, to borrow $ 900,000 (Rs 4.05 crore @ Rs 45.02 to a dollar on that date) at an interest rate of 2 per cent. The Aphra board approved the agreement. The same day, in a board meeting, the directors noted that Aphra had sufficient reserves, and recommended an interim distribution of $ 200,000 (Rs 90.04 lakh @ Rs 45.02 to a dollar) to Dome Services FZC. The board also empowered Khosla to sign and execute for and on behalf of Aphra all necessary documents to acquire real estate in Dubai, and make other investments that would yield income and capital.
The 2003 Portals-Aphra Agency Agreement forbade Aphra from acting as an agent of any third party, i.e. a rival to Portals (De La Rue), and from manufacturing and selling competing goods for the duration of the agreement and up to a year after its termination. Aphra was to forward all enquiries to Portals, actively support its sales effort and after sales services, maintain good relations with customers, and provide market information.
The Agreement also required Aphra to achieve three specific targets: incorporate Starchrome into the imminent banknote paper tender, ensure the tender was launched before December 2003, and support Portals in winning 50 per cent of the tender. The agreement offered a 15 per cent commission for an initial order of goods from a customer, to be paid once the customer made the payment.
The Agreement was to end on April 1, 2006, or with the expiry of the expected India Banknote Contract (2003), whichever was later. At a meeting on March 31, 2006, the board of Aphra, however, resolved to amend Clause 4 of the Agreement to say it shall terminate on June 30, 2008, or with the expiry of the second part (2005) of the India Banknote Paper Contract, whichever was later. This suggests that the Agency Agreement between De La Rue and Aphra was alive at least until June 2008.
Money Deal
Apr 1, 2002: Agency Agreement signed between Aphra Consultants SA and De La Rue International Limited trading as Portals.
Aug 15, 2002: De La Rue Managing Director James Hussey amends agreement and authorises Portals to pay £ 500,000 to Aphra towards marketing, travel expenses, etc.
Apr 1, 2003: De La Rue Director of Sales Michael Wilkinson renews Agency Agreement, to terminate on April 1, 2006.
Aug 6, 2003: Aphra board authorises company to act as non-exclusive consultant to Portals. Teewareesing Gopal authorised to execute Agency Agreement on behalf of Aphra.
Mar 31, 2004: Somendra Khosla enters into a loan agreement with Aphra Consultants. Borrows $900,000 at an interest rate of 2%. Directors note that Aphra has sufficient reserves and recommend an interim distribution of $ 200,000 to Dome Services FZC. Board also empowers Khosla to sign and execute for and on behalf of Aphra all necessary documents to acquire real estate in Dubai and make other investments.
Mar 31, 2006: Aphra board resolves that Clause 4 of Agency Agreement of April 1, 2003 be amended to state that the Agreement shall terminate on June 30, 2008, or with the expiry of the second part (2005) of the India Banknote Paper Contract, whichever is later. Vimla Ramasamy, the Company Secretary of Jupiter Management (Mauritius) Limited, fully authorised to act for and on behalf of Aphra for the execution of the amended Clause 4 of the Agency Agreement dated April 1, 2003.
Feb 10, 2009: Certificate of Incumbency dated February 10, 2009, continues to show Mossack Fonseca Legal Services as the Registered Agent of Aphra Consultants SA. Beneficial owner of Aphra Consultants is Somendra Khosla.
Sep 7, 2009: Aphra Consultants board resolves to shift domicile of company from Panama to Seychelles.
Response from the De La Rue spokesperson:
“This article refers to events that took place many years ago and the individuals mentioned have long since left the business. De La Rue does business to the highest ethical standards. We require our business partners to do the same, including compliance with national and international tax legislation. These relationships are reviewed continuously, and failure to meet the required standards will result in immediate termination of the relationship by De La Rue.”
http://ift.tt/23fjPq1
*************
Mountainman: Hurry,Hurry,HURRY.......UNWTO/.....WTO.......IRAN......June is Around the "CORNER"......and They feel the Need.....The NEED for SPEED....w/Good Reasons.......IMO
Thunderhawk: 6th int'l Silk Road meeting to be held in Iran by end of April
A senior cultural official said here Thursday that the 6th meeting of the United Nations World Tourism Organization (UNWTO) Silk Road Task Force is slated for April 22-25 in this northwestern Iranian province.
Jalil Jabbari, head of the province's cultural heritage, handicrafts and tourism organization, said 35 countries are to attend the Silk Road meeting.
The Silk Road or Silk Route is an ancient network of trade routes that were central to cultural interaction through regions of Asia connecting the West and East.
The UNWTO Silk Road Programme is a collaborative initiative designed to enhance sustainable tourism development along the historic Silk Road routes.
According to the UNWTO website, it aims at maximizing the benefits of tourism development for local Silk Road communities, while stimulating investment and promoting the conservation of the route's natural and cultural heritage.
Additionally, it is working to foster greater cooperation between Silk Road countries and regions, with the established aim of creating a seamless and memorable Silk Road travel experience.
http://ift.tt/22fBZ5f
************
Mountainman: BREXIT.......Stage RIGHT EVEN.......Now.....We See "EVERYONE READY".......From The EAST to the WEST.......It's A GLOBAL EVENT......Remember that.....and ALL had to be Positioned for the TRANSITION......but You can't just {SPRING IT} on the WORLD
it has to be "CHOREOGRAPHED" w/Precision.....and that's WHAT we see W/IRAQ/IRAN /CHINA/JAPAN/the EU/USA......Etc......WOW
Thunderhawk: Backdoc Alert
JPMorgan's Dimon warns of economic trouble from Brexit
Jamie Dimon, CEO of JPMorgan Chase & Co (JPM.N) warned on Wednesday that years of economic uncertainty would be the "best case" outcome from a decision by Britain to leave the European Union.
Writing in his latest annual letter to shareholders, Dimon said the economies of the U.K. and E.U. states would be hurt even if Britain managed to quickly renegotiate hundreds of trade and other contracts following an exit. The "bad scenario" would include trade retaliation against the U.K. by E.U. states.
Voters in Britain are to go to the poles in June on whether the U.K. should leave the E.U.
http://ift.tt/22fBXKD
*************
Mountainman: CHINA/USA....SIAMESE "DEBT" TWINS......The TWO Largest Economies will Remain On TOP.....IMO.....but as We SEE Both DEBT Ridden and Over LEVERAGED.....NEW VALUES and NEW TRADE AGREEMENTS=TPP ,The NEW SILK ROAD etc.... will set the NEW FOUNDATION for Both and ASSET BACKED VALUES Await.....
but.....the TRANSITION is A Reality of Tumultuous CHANGE......and in said "Change"....the DOLLAR {Must} lose Value before it GOES Up in VALUE.......CHINA.....Likewise.....IMO
Blessings,Mountainman (8)=New Beginnings
Thunderhawk: Growing US Debt to 'Hasten Demise' of Dollar as World Reserve Currency
Career diplomat and Council on Foreign Relations President Richard Haass claims that the growth of the public debt in the United States, now approaching $14 trillion, could cause the US dollar to lose its global reserve currency role.
The growth of the public debt in the United States, now approaching $14 trillion, could cause the US dollar to lose its global reserve currency role, career diplomat and Council on Foreign Relations President Richard Haass said on Wednesday.
"Mounting debt will hasten the demise of the dollar as the world’s reserve currency," Haass told members of the US Senate Foreign Relations Committee in testimony on the strategic implications of the US debt.
Haass warned that a "post-dollar world" will be more financially costly for the United States and will negatively impact the country’s political leverage to impose dollar-related sanctions.
Since the end of World War II, the US dollar has been the dominant currency in world trade. At the end of 2015, the Chinese yuan was included in the International Monetary Fund’s basket of currencies, a critical determinant of world currency valuations.
Haass argued that the demise of the US dollar would occur as a result of a "loss of confidence in US financial management."
Such development can come because of concerns about the ability of the United States to do "what it should be doing to manage the US and indirectly world economy," Haass explained.
The inability of the United States to handle its massive debt load will "detract from the appeal" of the US model, making the world "less democratic and… less deferential to US concerns in matters of security, Haas added.
According to Congressional Budget Office estimates, the US public debt stands at approximately 75 percent of the country’s gross domestic product.
http://ift.tt/23fjPq6
De La Rue International Limited, trading as Portals, entered into an Agency Agreement with Aphra Consultants SA on April 1, 2002, through which Aphra was appointed non-exclusive consultant to introduce business opportunities for De La Rue in South East Asia, including India.
Aphra was an offshore entity based in Panama and its final beneficial owner was Somendra Khosla, whose address is specified in the MF papers as D-984, New Friends Colony, New Delhi 110065. Portals, which has been supplying banknote paper to the Bank of England since 1724, was acquired by De La Rue in 1995. The agreement was in effect at least until June 2008, the MF papers show.
On August 15, 2002, four-and-a-half months after the Agency Agreement was signed, De La Rue Managing Director James Hussey wrote to Aphra, amending the agreement to allow Portals to authorise a payment of £ 500,000 (Rs 3.74 crore @ Rs 74.82 to a pound as on August 15, 2002) to the company.
“In recognition of the significant costs incurred since the last banknote paper tender was held in India (traveling to and from Europe, sales conferences, marketing brochures, etc), Portals is prepared to authorise a payment of UK Pounds 500,000 at a mutually agreed time,” Hussey said in the letter.
On April 1, 2003, the terms of the Agency Agreement were renewed by De La Rue’s Director of Sales Michael Wilkinson, providing for a 15 per cent commission to Aphra for an initial order of goods from a customer after the payment had been made.
In subsequent years, De La Rue bagged several tenders floated by the Reserve Bank of India for the supply of banknotes — which are referred to as “India Banknote Contract 2003” and, in another instance, as “second part (2005) of the India Banknote Paper Contract” in the internal board meeting memos of Aphra Consultants SA.
The Portals-Aphra Agency Agreement of April 1, 2003, which sets the terms of engagement, mentions only the name of the company (Aphra). But the certificate of incumbency available in the MF files shows that the ultimate beneficial owner of Aphra, at least until September 2009, was Somendra Khosla.
In July 2010, De La Rue messed up an order for high-quality banknote paper from RBI. The following month, its MD, James Hussey, under whose watch the Agency Agreement was signed with Aphra in April 2002 and who had amended the agreement to authorise an extra payment of £500,000 to Aphra in 2002, quit.
The Indian Express physically verified Khosla’s New Friends Colony address. When first contacted 10 days ago, he said he was on vacation and would respond during the weekend. When contacted again, Khosla said, “I don’t want to share any information. We do not share business information.” A detailed email sent to him on March 28 and couple of text messages subsequently did not elicit a response.
An email was sent to Brunswick (Financial PR), listed as a media contact for De La Rue, on March 28, and again on April 1. Three days later, Eden Yates, a Brunswick Group executive wrote back, “Thanks again for getting in touch with us. We are still looking into this and will get back to you in due course with our response, but as you know, your queries relate to a period some years ago.” Brunswick Group did not respond to the queries until Tuesday evening.
Incidentally, Khosla, though the beneficial owner of Aphra Consultants, entered into a loan agreement with the company on March 31, 2004, to borrow $ 900,000 (Rs 4.05 crore @ Rs 45.02 to a dollar on that date) at an interest rate of 2 per cent. The Aphra board approved the agreement. The same day, in a board meeting, the directors noted that Aphra had sufficient reserves, and recommended an interim distribution of $ 200,000 (Rs 90.04 lakh @ Rs 45.02 to a dollar) to Dome Services FZC. The board also empowered Khosla to sign and execute for and on behalf of Aphra all necessary documents to acquire real estate in Dubai, and make other investments that would yield income and capital.
The 2003 Portals-Aphra Agency Agreement forbade Aphra from acting as an agent of any third party, i.e. a rival to Portals (De La Rue), and from manufacturing and selling competing goods for the duration of the agreement and up to a year after its termination. Aphra was to forward all enquiries to Portals, actively support its sales effort and after sales services, maintain good relations with customers, and provide market information.
The Agreement also required Aphra to achieve three specific targets: incorporate Starchrome into the imminent banknote paper tender, ensure the tender was launched before December 2003, and support Portals in winning 50 per cent of the tender. The agreement offered a 15 per cent commission for an initial order of goods from a customer, to be paid once the customer made the payment.
The Agreement was to end on April 1, 2006, or with the expiry of the expected India Banknote Contract (2003), whichever was later. At a meeting on March 31, 2006, the board of Aphra, however, resolved to amend Clause 4 of the Agreement to say it shall terminate on June 30, 2008, or with the expiry of the second part (2005) of the India Banknote Paper Contract, whichever was later. This suggests that the Agency Agreement between De La Rue and Aphra was alive at least until June 2008.
Money Deal
Apr 1, 2002: Agency Agreement signed between Aphra Consultants SA and De La Rue International Limited trading as Portals.
Aug 15, 2002: De La Rue Managing Director James Hussey amends agreement and authorises Portals to pay £ 500,000 to Aphra towards marketing, travel expenses, etc.
Apr 1, 2003: De La Rue Director of Sales Michael Wilkinson renews Agency Agreement, to terminate on April 1, 2006.
Aug 6, 2003: Aphra board authorises company to act as non-exclusive consultant to Portals. Teewareesing Gopal authorised to execute Agency Agreement on behalf of Aphra.
Mar 31, 2004: Somendra Khosla enters into a loan agreement with Aphra Consultants. Borrows $900,000 at an interest rate of 2%. Directors note that Aphra has sufficient reserves and recommend an interim distribution of $ 200,000 to Dome Services FZC. Board also empowers Khosla to sign and execute for and on behalf of Aphra all necessary documents to acquire real estate in Dubai and make other investments.
Mar 31, 2006: Aphra board resolves that Clause 4 of Agency Agreement of April 1, 2003 be amended to state that the Agreement shall terminate on June 30, 2008, or with the expiry of the second part (2005) of the India Banknote Paper Contract, whichever is later. Vimla Ramasamy, the Company Secretary of Jupiter Management (Mauritius) Limited, fully authorised to act for and on behalf of Aphra for the execution of the amended Clause 4 of the Agency Agreement dated April 1, 2003.
Feb 10, 2009: Certificate of Incumbency dated February 10, 2009, continues to show Mossack Fonseca Legal Services as the Registered Agent of Aphra Consultants SA. Beneficial owner of Aphra Consultants is Somendra Khosla.
Sep 7, 2009: Aphra Consultants board resolves to shift domicile of company from Panama to Seychelles.
Response from the De La Rue spokesperson:
“This article refers to events that took place many years ago and the individuals mentioned have long since left the business. De La Rue does business to the highest ethical standards. We require our business partners to do the same, including compliance with national and international tax legislation. These relationships are reviewed continuously, and failure to meet the required standards will result in immediate termination of the relationship by De La Rue.”
http://ift.tt/23fjPq1
*************
Mountainman: Hurry,Hurry,HURRY.......UNWTO/.....WTO.......IRAN......June is Around the "CORNER"......and They feel the Need.....The NEED for SPEED....w/Good Reasons.......IMO
Thunderhawk: 6th int'l Silk Road meeting to be held in Iran by end of April
A senior cultural official said here Thursday that the 6th meeting of the United Nations World Tourism Organization (UNWTO) Silk Road Task Force is slated for April 22-25 in this northwestern Iranian province.
Jalil Jabbari, head of the province's cultural heritage, handicrafts and tourism organization, said 35 countries are to attend the Silk Road meeting.
The Silk Road or Silk Route is an ancient network of trade routes that were central to cultural interaction through regions of Asia connecting the West and East.
The UNWTO Silk Road Programme is a collaborative initiative designed to enhance sustainable tourism development along the historic Silk Road routes.
According to the UNWTO website, it aims at maximizing the benefits of tourism development for local Silk Road communities, while stimulating investment and promoting the conservation of the route's natural and cultural heritage.
Additionally, it is working to foster greater cooperation between Silk Road countries and regions, with the established aim of creating a seamless and memorable Silk Road travel experience.
http://ift.tt/22fBZ5f
************
Mountainman: BREXIT.......Stage RIGHT EVEN.......Now.....We See "EVERYONE READY".......From The EAST to the WEST.......It's A GLOBAL EVENT......Remember that.....and ALL had to be Positioned for the TRANSITION......but You can't just {SPRING IT} on the WORLD
it has to be "CHOREOGRAPHED" w/Precision.....and that's WHAT we see W/IRAQ/IRAN /CHINA/JAPAN/the EU/USA......Etc......WOW
Thunderhawk: Backdoc Alert
JPMorgan's Dimon warns of economic trouble from Brexit
Jamie Dimon, CEO of JPMorgan Chase & Co (JPM.N) warned on Wednesday that years of economic uncertainty would be the "best case" outcome from a decision by Britain to leave the European Union.
Writing in his latest annual letter to shareholders, Dimon said the economies of the U.K. and E.U. states would be hurt even if Britain managed to quickly renegotiate hundreds of trade and other contracts following an exit. The "bad scenario" would include trade retaliation against the U.K. by E.U. states.
Voters in Britain are to go to the poles in June on whether the U.K. should leave the E.U.
http://ift.tt/22fBXKD
*************
Mountainman: CHINA/USA....SIAMESE "DEBT" TWINS......The TWO Largest Economies will Remain On TOP.....IMO.....but as We SEE Both DEBT Ridden and Over LEVERAGED.....NEW VALUES and NEW TRADE AGREEMENTS=TPP ,The NEW SILK ROAD etc.... will set the NEW FOUNDATION for Both and ASSET BACKED VALUES Await.....
but.....the TRANSITION is A Reality of Tumultuous CHANGE......and in said "Change"....the DOLLAR {Must} lose Value before it GOES Up in VALUE.......CHINA.....Likewise.....IMO
Blessings,Mountainman (8)=New Beginnings
Thunderhawk: Growing US Debt to 'Hasten Demise' of Dollar as World Reserve Currency
Career diplomat and Council on Foreign Relations President Richard Haass claims that the growth of the public debt in the United States, now approaching $14 trillion, could cause the US dollar to lose its global reserve currency role.
The growth of the public debt in the United States, now approaching $14 trillion, could cause the US dollar to lose its global reserve currency role, career diplomat and Council on Foreign Relations President Richard Haass said on Wednesday.
"Mounting debt will hasten the demise of the dollar as the world’s reserve currency," Haass told members of the US Senate Foreign Relations Committee in testimony on the strategic implications of the US debt.
Haass warned that a "post-dollar world" will be more financially costly for the United States and will negatively impact the country’s political leverage to impose dollar-related sanctions.
Since the end of World War II, the US dollar has been the dominant currency in world trade. At the end of 2015, the Chinese yuan was included in the International Monetary Fund’s basket of currencies, a critical determinant of world currency valuations.
Haass argued that the demise of the US dollar would occur as a result of a "loss of confidence in US financial management."
Such development can come because of concerns about the ability of the United States to do "what it should be doing to manage the US and indirectly world economy," Haass explained.
The inability of the United States to handle its massive debt load will "detract from the appeal" of the US model, making the world "less democratic and… less deferential to US concerns in matters of security, Haas added.
According to Congressional Budget Office estimates, the US public debt stands at approximately 75 percent of the country’s gross domestic product.
http://ift.tt/23fjPq6
Mountainman: Well Hello CHINA/USA/EUROPE......A decision was Made because A REALITY to CHINA'S Inclusion and NEW Contributions to the GLOBAL ECONOMY were Needed.....
W/The New Rules they can't Cheat Anymore.....and Everyone knowing "WHAT" their Currency will bring to this New Monetary {SHIFT}.....was No DOUBT was WHY J.LEW and O made Trips and Deals Along the Way 2 Years Ago w/ CHINA as well.....
IMO......and Thus, There are NOW Mutual "Understandings" between us and them......and the EU is Foreseeing a MAJOR Addition to their PORTFOLIO......just like We would do.....=STRATEGY.....Not to Mention if/When the EURO goes SOUTH.....they Now have Another Back Up/SUPPORT Reality w/ their Individual New Values and The YUAN......IMO
Blessings,Mountainman (8)=New Beginnings
Thunderhawk: BIG ALERT
Europe’s ‘Romance With Renminbi’: What Are the Chances for Success
The central parity rate of the Chinese yuan, or renminbi as it's also known, weakened 91 basis points against the US dollar on Wednesday with analysts forecasting its further weakening by the end of the year; however, this has not prevented the West – and Europe in particular – from doubling down on the currency… let's have a look why.
The central parity rate of the Chinese currency weakened 91 basis points to 6.4754 against the US dollar on Wednesday, according to the China Foreign Exchange Trading System.
An HSBC currency analyst suggests further depreciation of the currency towards 6.9 against the US dollar by the end of the year. However, this has not prevented the West – and Europe in particular – from doubling down on the currency.
Asia market analysts Miguel Otero-Iglesias and Nicola Casarini have explained what lies behind Europe’s investment in the renminbi.
“When the International Monetary Fund announced in December that the renminbi would join the US dollar, the British pound, the euro, and the Japanese yen in the currency basket underlying its unit of account, the Special Drawing Rights (SDR) basket, the decision was clearly political,” reads their analytical article on the issue on the website Project Syndicate.
Even though the currency performs well and its internationalization is sustaining, the authors explained that its inclusion in the SDR “owes much to the decision by the US to defer to Europe.”
“The US had argued for years that the renminbi should be included in the SDR only if China opened its capital account, let its currency float freely, and had a more independent central bank. None of this has happened,” the analysts note.
“But after China established the Asian Infrastructure Investment Bank with the support of Europe, the US agreed to drop its objections. After all, the SDR basket plays a minor role in global finance, and admitting the renminbi was seen as a small price to pay to keep China embedded in the Bretton Woods institutions,” the authors say.
Europe’s investment in the renminbi, they suggest, goes far beyond political symbolism.
“The currency’s inclusion in the SDR, it is hoped, will encourage China to liberalize its capital account further,” the analysts suggest.
Europe would also like to welcome the country to the core group of world powers that decide global monetary affairs.
“British Chancellor George Osborne has made it clear that he would like the City of London to be the most important offshore market for renminbi trading and services. It was no coincidence that during President Xi Jinping’s state visit to the United Kingdom in October 2015, China chose London to issue its first overseas renminbi sovereign debt,” the authors suggest.
“The rest of Europe is equally enthusiastic. Today, the continent is home to the largest number of renminbi bank clearings. Offshore renminbi hubs have emerged in Frankfurt, Paris, Milan, Luxemburg, Prague, and Zurich, and most of Europe’s central banks have added – or are considering adding – China’s currency to their portfolios.”
However, the analysts acknowledge that the timing for such a “romance” is not particularly good, as the currency is under speculative attack and the Chinese themselves are “losing confidence.”
“Europe’s efforts could succeed; but unless China makes its currency even more widely accessible and opens its market further, they are almost sure to fail,” they state.
http://ift.tt/23fjPq9
W/The New Rules they can't Cheat Anymore.....and Everyone knowing "WHAT" their Currency will bring to this New Monetary {SHIFT}.....was No DOUBT was WHY J.LEW and O made Trips and Deals Along the Way 2 Years Ago w/ CHINA as well.....
IMO......and Thus, There are NOW Mutual "Understandings" between us and them......and the EU is Foreseeing a MAJOR Addition to their PORTFOLIO......just like We would do.....=STRATEGY.....Not to Mention if/When the EURO goes SOUTH.....they Now have Another Back Up/SUPPORT Reality w/ their Individual New Values and The YUAN......IMO
Blessings,Mountainman (8)=New Beginnings
Thunderhawk: BIG ALERT
Europe’s ‘Romance With Renminbi’: What Are the Chances for Success
The central parity rate of the Chinese yuan, or renminbi as it's also known, weakened 91 basis points against the US dollar on Wednesday with analysts forecasting its further weakening by the end of the year; however, this has not prevented the West – and Europe in particular – from doubling down on the currency… let's have a look why.
The central parity rate of the Chinese currency weakened 91 basis points to 6.4754 against the US dollar on Wednesday, according to the China Foreign Exchange Trading System.
An HSBC currency analyst suggests further depreciation of the currency towards 6.9 against the US dollar by the end of the year. However, this has not prevented the West – and Europe in particular – from doubling down on the currency.
Asia market analysts Miguel Otero-Iglesias and Nicola Casarini have explained what lies behind Europe’s investment in the renminbi.
“When the International Monetary Fund announced in December that the renminbi would join the US dollar, the British pound, the euro, and the Japanese yen in the currency basket underlying its unit of account, the Special Drawing Rights (SDR) basket, the decision was clearly political,” reads their analytical article on the issue on the website Project Syndicate.
Even though the currency performs well and its internationalization is sustaining, the authors explained that its inclusion in the SDR “owes much to the decision by the US to defer to Europe.”
“The US had argued for years that the renminbi should be included in the SDR only if China opened its capital account, let its currency float freely, and had a more independent central bank. None of this has happened,” the analysts note.
“But after China established the Asian Infrastructure Investment Bank with the support of Europe, the US agreed to drop its objections. After all, the SDR basket plays a minor role in global finance, and admitting the renminbi was seen as a small price to pay to keep China embedded in the Bretton Woods institutions,” the authors say.
Europe’s investment in the renminbi, they suggest, goes far beyond political symbolism.
“The currency’s inclusion in the SDR, it is hoped, will encourage China to liberalize its capital account further,” the analysts suggest.
Europe would also like to welcome the country to the core group of world powers that decide global monetary affairs.
“British Chancellor George Osborne has made it clear that he would like the City of London to be the most important offshore market for renminbi trading and services. It was no coincidence that during President Xi Jinping’s state visit to the United Kingdom in October 2015, China chose London to issue its first overseas renminbi sovereign debt,” the authors suggest.
“The rest of Europe is equally enthusiastic. Today, the continent is home to the largest number of renminbi bank clearings. Offshore renminbi hubs have emerged in Frankfurt, Paris, Milan, Luxemburg, Prague, and Zurich, and most of Europe’s central banks have added – or are considering adding – China’s currency to their portfolios.”
However, the analysts acknowledge that the timing for such a “romance” is not particularly good, as the currency is under speculative attack and the Chinese themselves are “losing confidence.”
“Europe’s efforts could succeed; but unless China makes its currency even more widely accessible and opens its market further, they are almost sure to fail,” they state.
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