The US wields incredible negotiating power and hegemony because the dollar is the world’s reserve currency. Like the British pound and the Dutch guilder before it, if that loses reserve currency status it will be harder to borrow on favorable terms, which would affect the entire US economy. This is a big step in that perhaps starting to happen over the next few decades.
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qprofyeh
I wonder if it has anything to do with the currency apparently being backed by an immense reserve of oil (proven to the world by this year's geopolitical events), then coal, and then a massive amount of renewable solar, hydro, wind kWh's and infrastructure to deliver it to homes and shops.
More and more it feels like a nation's kWh throughput is the new metric to track its global influence in manufacturing, industry, and financial services. In other words electric power now equates to global power.
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WhyNotHugo
An interesting move. Something that drives me crazy when interacting with China, is that I can only use American payment methods to make a payment from Europe to China. I pay a fee and the merchant pays a fee both to the US. It just sounds broken. I hope this is a step in eventually resolving this.
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jagermo
Of course it's Deutsche Bank, I am sure nothing shady will come of that.
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JimmyBuckets
It will be interesting to see how much of Thucydides Trap plays out in currency and trade as opposed to military conflict. I am hopeful that economic and financial warfare absorbs the brunt of the power struggle.
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penguin_booze
Cozying up to China warrants caution. But moving away from USD is an absolute imperative. It's good to have options, you know.
hk1337
I'm curious what other banks have this ability? Is this the first foreign yuan clearing bank in Europe or in the World?
aljgz
Change happens gradually, and then suddenly.
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mrtksn
I have this pet theory that is fueled with ignorance but kind of make sense to me: The correct value of the USD would be adjusted to match the tech company valuations sans AI(Apple can be a good guide IMHO) when they serve 350M people instead of 8B people as AI makes software obsolete and the geopolitics and the US government behavior dismantles any network or lock in effects.
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DC-3
What does that mean?
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avisser
Is it a yuan or is it a Renminbi?
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athrowaway3z
Would this also mean we can get a EuroDollar systems for the Yuan? As in, Deutsche Bank can create loans denominated in Yuan without Chinese central bank control?
worth noting that one main reason why this didn't happen sooner is because China didn't want it to -- while the RMB as a reserve / trading currency strengthens its status and weakens the US', it also makes it harder for China to control the exchange rate, which in the past it considered to be a strategic imperative.
t3hTao
Bank who did some dark stuff with Trump and Russia is working with China? I'm shocked!
hnussffjc9
This aged well
Alien1Being
Trump is making China great again.
Pity about the USA....
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sigma5
"but at what cost" ?
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FrustratedMonky
The end of the Petro Dollar?
Soviet-China-Iran - Petro Yuan?
/edit for the pedantic.
Russian Federation.
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zer00eyz
Deutsche banks slogan should be "If you need to do something shady call Deutsche".
At some point china will loose the ability to keep its global currency (Yuan, should be inflating) decoupled from the domestic one (Renminbi is deflating). They have been keeping long running issues in Banking, and Relestate at bay but a global recession (and were on the cusp it seems) is going to be brutal to china.
I suspect that if (when?) that hits this will turn into another Deutsche scandal.
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lenerdenator
Ah, yes, the best way to react to increased authoritarianism in the US is to checks notes begin doing more business with a country that is the final word in authoritarianism.
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roschdal
I don't like, trust or trade with China.
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kklisura
If there's one thing you can do now that will set you up for the next 20–30 years: it’s learning Mandarin.
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BaardFigur
Not a good thing. China is an authoritarian regime, which we need to reduce dependency on, not increase it.
The US wields incredible negotiating power and hegemony because the dollar is the world’s reserve currency. Like the British pound and the Dutch guilder before it, if that loses reserve currency status it will be harder to borrow on favorable terms, which would affect the entire US economy. This is a big step in that perhaps starting to happen over the next few decades.
I wonder if it has anything to do with the currency apparently being backed by an immense reserve of oil (proven to the world by this year's geopolitical events), then coal, and then a massive amount of renewable solar, hydro, wind kWh's and infrastructure to deliver it to homes and shops.
More and more it feels like a nation's kWh throughput is the new metric to track its global influence in manufacturing, industry, and financial services. In other words electric power now equates to global power.
An interesting move. Something that drives me crazy when interacting with China, is that I can only use American payment methods to make a payment from Europe to China. I pay a fee and the merchant pays a fee both to the US. It just sounds broken. I hope this is a step in eventually resolving this.
Of course it's Deutsche Bank, I am sure nothing shady will come of that.
It will be interesting to see how much of Thucydides Trap plays out in currency and trade as opposed to military conflict. I am hopeful that economic and financial warfare absorbs the brunt of the power struggle.
Cozying up to China warrants caution. But moving away from USD is an absolute imperative. It's good to have options, you know.
I'm curious what other banks have this ability? Is this the first foreign yuan clearing bank in Europe or in the World?
Change happens gradually, and then suddenly.
I have this pet theory that is fueled with ignorance but kind of make sense to me: The correct value of the USD would be adjusted to match the tech company valuations sans AI(Apple can be a good guide IMHO) when they serve 350M people instead of 8B people as AI makes software obsolete and the geopolitics and the US government behavior dismantles any network or lock in effects.
What does that mean?
Is it a yuan or is it a Renminbi?
Would this also mean we can get a EuroDollar systems for the Yuan? As in, Deutsche Bank can create loans denominated in Yuan without Chinese central bank control?
I wonder if this might be a reaction to the "blindsided" ECB, following a US decision to prop up the Japanese yen. This would be an interesting fracture. https://www.ft.com/content/d9922d0b-51a0-48be-811b-42e08f909...
worth noting that one main reason why this didn't happen sooner is because China didn't want it to -- while the RMB as a reserve / trading currency strengthens its status and weakens the US', it also makes it harder for China to control the exchange rate, which in the past it considered to be a strategic imperative.
Bank who did some dark stuff with Trump and Russia is working with China? I'm shocked!
This aged well
Trump is making China great again.
Pity about the USA....
"but at what cost" ?
The end of the Petro Dollar?
Soviet-China-Iran - Petro Yuan?
/edit for the pedantic. Russian Federation.
Deutsche banks slogan should be "If you need to do something shady call Deutsche".
At some point china will loose the ability to keep its global currency (Yuan, should be inflating) decoupled from the domestic one (Renminbi is deflating). They have been keeping long running issues in Banking, and Relestate at bay but a global recession (and were on the cusp it seems) is going to be brutal to china.
I suspect that if (when?) that hits this will turn into another Deutsche scandal.
Ah, yes, the best way to react to increased authoritarianism in the US is to checks notes begin doing more business with a country that is the final word in authoritarianism.
I don't like, trust or trade with China.
If there's one thing you can do now that will set you up for the next 20–30 years: it’s learning Mandarin.
Not a good thing. China is an authoritarian regime, which we need to reduce dependency on, not increase it.