Presentor:-Sonu Yadav

Instructor:-Prof. Niso Abuaf

The ROCK of the presentation

China is playing chess while the U.S. is
playing checkers.
The Chinese are now accelerating their
long-term plan to dethrone the U.S.
dollar.
China does not plan to allow the U.S.
financial system to dominate the world
indefinitely.
Right now, China is the number one
exporter on the globe and China will
have the largest economy on the

Geographical locations of Chinas swap

counterparties

RMB internationalization is distinct in the sense that the Chinese

government is utilizing political power instead of market forces to start the
effort. Countries like South Korea and Australia, which have close economic
ties to China, even have expressed the willingness to hold the RMB as a
reserve currency. Nevertheless, the prospect that those countries will
become solid supporters of RMB remains uncertain. After all, South Korea
and Australia are strategically aligned with the United States. Meanwhile,
some claim thatRMB is held mainly for arbitrage reasons, with appreciation
expectation instead of fundamental attractiveness of the currency.
China is trying to expand the use of its currency through trade settlement,
swap agreements, and investment facilities without swiftly opening-up its
capital account.

Pakistan, China sign currency swap agreement

China is now in agreement with eight countries to conduct

trade in their local currencies. These include Pakistan,
Hong Kong, the UAE and Qatar.
China has been conducting roadshows since its official currency
renminbi was included in the IMFs Special Drawing Rights (SDR) list
of global currencies, effective from October 1, 2016. The IMF lends in
SDR denomination to nations across the world.
This coincided with Chinas on-going investment worth $46 billion in
Pakistan under the China-Pakistan Economic Corridor (CPEC)
An official handout said the bilateral currency swap
arrangement has been concluded in 10 billion Chinese
yuan and 140 billion Pakistani rupees. The programme
will expire in three years, but can be extended with mutual
consent. Pakistani importers can pay for Chinese goods in
local currency.

http://www.zerohedge.com/news/2013-10-18/9-signs-china-making-moveagainst-us-dollar
http://cogitasia.com/swap-agreements-chinas-rmb-currency-network/
https://en.wikipedia.org/wiki/Currency_swap
http://tribune.com.pk/story/1220159/bilateral-commerce-pakistanchina-trade-local-currencies/