The website has been created with the financial assistance

of the Federal Agency for Press and Mass Communications

of the Russian Federation

Make Infoshos my homepageContact usAdd to FavoritesHome
 
Member States:
12:26Astana
12:26Bishkek
11:56Delhi
14:26Beijing
10:26Moscow
11:26Islamabad
11:26Dushanbe
11:26Tashkent
Observer States:
10:56Tehran
09:26Minsk
14:26Ulan-Bator
10:56Kabul
Партнеры по диалогу:
10:56Yerevan
11:56Katmandu
09:26Ankara
13:26Phnom Penh
11:56Sri Dzhayavardenepura Kotte

SCO Currencies/Ruble

 
 
Country Code Currency Den. Rate
 
 

The official rate of the Central Bank of Russia

News

18.12.2017 11:46
US President threatens to "incinerate" North Korea
29.11.2017 14:44
Rashid Alimov has a meeting with Shamshad Akhtar in Bangkok
28.11.2017 14:45
SCO-ESCAP relations enter a new stage
27.11.2017 14:46
Rashid Alimov: Economic cooperation is a key priority for SCO at the new development stage. The SCO Secretary-General delivers an address at the ESCAP
24.11.2017 14:51
SCO information stand installed in Bangkok
22.11.2017 14:51
SCO and UN to step up cooperation in preventive diplomacy
16.11.2017 21:19
Trump called all countries to break off trade ties with the DPRK
16.11.2017 20:39
China did not confirm Trump's words about refusing "two frosts" on the Korean Peninsula
16.11.2017 20:08
"Cold war" in the 21st century is impossible – political scientist
14.11.2017 21:24
Medvedev: Russia is interested in Peaceful Settlement of Korean Question
 
MoTuWeThFrSaSu
1234567
891011121314
15161718192021
22232425262728
293031    
             
Renminbi to overthrow dollar from currency thrown
16.05.2011 10:00
Renminbi to overthrow dollar from currency thrown

The Chinese currency, renminbi, is becoming a serious rival of the US dollar. Kazakhstan has already announced that it will consider using it as a reserve currency. China is actively working to introduce pure swaps (a type of foreign currency transactions) all over Southeast Asia. The Chinese currency is conquering more and more territory here and is even going beyond the region, notably, to Latin America.

At the end of March, China signed an agreement on using the renminbi in trade settlements with Argentina (to an amount of $10 billion or RMB70 b illion). More importantly, the BRICS summit passed decisions that have the potential of overhauling the structure of the global economy. Opening of mutual credit lines in national currencies and the principled decision to give up mutual settlements in US d ollars are yet another step towards ousting the American currency from the position of the world’s reserve unit.

The framework agreement on ending settlements in dollars on mutual loans and on p roviding loans in natural currencies was signed on the sid elines of the summit by head s of the development banks from Russia, China, India, Brazil and South Africa. The document does not offer a specific timeframe for giving up the dollar comp letely, but Vladimir Dmitriyev, chairman of the Russian Develop ment Bank, has already said that this year, Moscow would borrow at least $500 million worth from China in renminbi. “We have developed a mechanism with the State Development Bank of China that would allow using offshore renminbi for guaranteeing swaps in convertible currencies, therefore making borrowing cheaper,” he explained.

In practice, Russia and China have been going over to settlements in national currencies for two or three years already. In border regions, trade has been conducted for roub les and renminbi for a long time, and the fact that the Russian and Chinese Central Banks have signed an agreement on mutual p ure swaps means that Russian and Chinese businessmen that conclude deals with each other have received an opportunity to remove two transactions from their op erations, i.e. they do not need to convert the renminbi in d ollars and dollars in roubles, or v ice versa, which was the case earlier.

Let me add that Americans charge a percentage – even if a minor one – for each tr ansaction with their currency. In their best years, before the 2008 crisis, the windfalls from the use of the d ollar in the world reached as high as 4% of America’s GDP.

It is important to bear in mind that drastic changes in the currency system are not easy to make and they take some time. What is the most likely scenario in the changes of the glob al reserve system? First of all, it will be evolution, not revolution. Second, it will be a multi-currency system, with two or three currencies serving as reserves on the global level plus several regional currencies having the same function on the p eriphery of the global economy.

The medium-term forecast of the Russian financial system’s development in 2010-2015, which was prepared by the Institute of Financial and Economic Research, forecasts this gradual development for global currencies, with the share of the US dollar in settlements dropping and several regional currencies emerging.

It seems that the euro will remain a global currency alongside the dollar. In the CIS, the rouble could become a reserve currency. The prospects of the renminbi are very good. However, it is unlikely to replace the dollar in the near term, since it is still not a freely convertible currency and will hardly become such soon. Besides, China has a problem with tough administrative restrictions on foreign currency transactions and capital movements.

On the other hand, China has proved its ability to adjust flexibly to changing circumstances and to persistently move towards the goals it considers strategic. The forecast made by the OECD that by 2015, China will outrun the US for economic might and become a leading global power is of significant importance. Maintaining its current growth p ace, China will account for 23% of the glob al economy by 2030.

However, one cannot but agree with experts that say that the increasing complexity of the global economy as a system and acuteness of conflicts of interests require several reserve currencies and make it imp ossible to create a supranational reserve currency. What is needed is a free glob al currencies market and gradual strengthening of the international financial regulations. Only such a disperse system will be ab le to bear the requirements to liquidity of the global economy, which is multi-polar, extremely complicated, volatile (due to it being innovative) and requires free movement of cap ital and streamlining of markets.

  • Add Comment
  • Print

Leave a comment

*
*
*
 

More

Euro-Asia Economic Forum to open in Xi'an
26.07.2017 11:55
Altay SCO forum – a unique ground for the young businessmen dialogue
07.11.2014 10:00
Why Ukraine wants to become SCO’s partner
08.10.2012 12:46
Russian Minister of Energy: we have a great potential in cooperation with China
03.09.2012 10:03
Gazprom will increase the search of hydrocarbon in Tajikistan
27.01.2012 17:49
Eurasian Union - a living reality of “utopian pipe dream”
13.01.2012 11:47
SCO and EurAsEC: Positive Dynamics of Cooperation
18.03.2010 13:10
Delhi Believes that Afghanistan should Become a Commercial and Transportation Center of Asia
29.01.2010 10:15
Tajikistan Presented Projects of Obtaining Credit by PRC within SCO
13.11.2009 12:32
Tajikistan’s and PRC’s Banks Cooperate within the SCO Interbank Association
20.10.2009 11:57

Comments(2)

What are you talking about, in early console days, the goal was related, you don't think Sega, Nintendo, Sony and other early developers didn't try to make popular titles that would sell? I think you are merely living in nostalgia rather than any actual reference. Plus the fact conceivable there are no "good" games demonstrates how biased you furthermore. I have yet to achieve any issue finding a good game on any unit, the fact that most people are able to as well is clear in a growing games market, increased sales, among other things. Get over the happy, because it's clearly not the way we remember it.