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bloomberg | Yuan Overtakes Dollar as China's Most Used Cross-Border Currency, 26 Apr, illustrated
The local currency's share of China's cross-border payments and receipts rose to a record high 48% at the month end from nearly zero in 2010, according to research by Bloomberg Intelligence citing data from the State Administration of Foreign Exchange [of China]. The dollar's share declined to 47% from 83% over the same period, the figures showed.
archived I am not going to recall the many times I've duly noted SWIFT, CIPS, SFPS, UPI "messaging systems" and onshore | offshore FX value disclocations, EME banks that have established settlement in local currencies for trade in commodities, including but not limited to, gas and petroleum products since PUTIN's FULL-SCALE INVASION OF UKRAINE. I'll cut to the quick in this story.
The ratio is calculated based on the volume [Q] on all types of transactions, which includes securities trading through the links between mainland China and Hong Kong's capital markets. It doesn't represent transactions used by the rest of the world -- the yuan's share in global payments was little changed at 2.3% in March, according to SWIFT
which cannot track bi-lateral interbank "transactions used by the rest of the world", if EME regulators choose not to report to localized settlements to SWIFT regulators. This data point is a useless metric; it doesn't even express economic value:volume, eg. USD inflation. G7 has lost the plot of their own demise. No wonder they've dispatched shylocks compliance officers to intimidated borrowers who accept "discounts". Further, the more EME allocations of reserve currencies diversify and grow, the less likely their central banks will utilize SWIFT. A decade from now, EME odious debt service will be the only use for SWIFT and WB/IMF credit checks.  
archived April 2023 price cap mania never accepts failure
by Cat on Wed Apr 26th, 2023 at 07:43:36 PM EST

DCMA | Universal Monetary Unit is here to help you help us lock rates, hide fees, and efficiently freeze you assets!

IMF Spring Meetings 2023: 30 Mar - 15 Apr schedule

At the heart of the gathering are meetings of the joint Development Committee and the IMF's International Monetary and Financial Committee, which discuss progress on [loan products] of the World Bank Group and the IMF. Also featured are seminars, regional briefings, press conferences, and many other events focused on the global economy, international development, and the world's financial markets....
for example, Analytical Corner: Drivers of Capital Flows to Emerging Markets, 11 Apr
...motivated by the recent period of capital outflows amid sharp monetary policy tightening in the US. Capital flow episodes across EMs are analyzed with a structural dynamic factor model to assess the comparative importance of supply and demand factors in driving capital flows to and from EMs, and of global versus country-specific shocks. Global supply forces are central drivers, shaping the yields and --to a lesser extent-- the volume of flows....
prnewswire | The Digital Currency Monetary Authority (DCMA) Launches an International Central Bank Digital Currency (CBDC), 10 Apr
[...]
Universal Monetary Unit (UMU), symbolized as ANSI Character, Ü, is legally a money commodity, can transact in any legal tender settlement currency, and functions like a CBDC to enforce banking regulations and to protect the financial integrity of the international banking system.

Banks can attach SWIFT Codes and bank accounts to a UMU digital currency wallet and transaction SWIFT-like cross-border payments over digital currency rails completely bypassing the correspondent banking system at best-priced wholesale FX rates and with instantaneous real-time settlement.

In an IMF interview with Tobias Adrian, Financial Counsellor at the International Monetary Fund, he states "Cross-border payments can be sooooo slow, sooooo expensive, and sooooo risky. In today's world of payments, counterparties in different jurisdictions rely on costly trusted relationships to offset the lack of a common settlement asset together with common rules and governance. BUT IMAGINE IF a multilateral [institution] existed that could improve cross-border payments--at the same time transforming foreign exchange transactions, risk sharing, and more generally, financial contracting."
[...]

archived oops
by Cat on Thu Apr 27th, 2023 at 02:48:18 AM EST
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