Flame retardant fabric_Flame retardant fabric_Cotton flame retardant fabric_Flame retardant fabric information platform Flame-retardant Fabric News 29 countries around the world use RMB for foreign trade settlement! The over 500 billion textile foreign trade market may not be affected by the exchange rate!

29 countries around the world use RMB for foreign trade settlement! The over 500 billion textile foreign trade market may not be affected by the exchange rate!



Countries around the world should prevent the United States from “shearing” the world through currency releases and dollar depreciation. Faced with the irresponsible ov…

Countries around the world should prevent the United States from “shearing” the world through currency releases and dollar depreciation. Faced with the irresponsible over-issuance of the U.S. dollar, countries should reduce their holdings of U.S. dollar assets and resist U.S. dollar hegemony. It can be said that as the credit of the US dollar continues to be overdrawn, many countries around the world have begun the process of “de-dollarization”, and reducing their holdings of US dollars in foreign exchange reserves is one of the methods.

The U.S. dollar’s ​​share of global foreign exchange reserves fell by 30%!

According to the latest report on April 1, the latest data released by the International Monetary Fund (IMF) show that in the fourth quarter of 2020, the U.S. dollar’s ​​share of global foreign exchange reserves has dropped to nearly 25 years (1995 ), the lowest level since. Specifically, the U.S. dollar’s share of foreign exchange reserves is 59%, which has been declining for three consecutive quarters. In comparison, between 1977 and 1991, U.S. dollar assets accounted for as high as 85% of global foreign exchange reserves. This compares to a decline of about 30% today.

Global foreign exchange reserves are assets held by central banks of various countries in different currencies. In this report, the proportion of non-US dollar currencies has increased, among which the proportion of the euro rose to 21.2%, which was the highest in 2014. highest level since. At the same time, the scale of RMB reserves continues to rise. Data show that in the fourth quarter of last year, the total RMB foreign exchange reserves were US$267.52 billion, accounting for 2.25% of global foreign exchange reserves, increasing for four consecutive quarters.

29 countries around the world use RMB for foreign trade settlement!

Recently, my country and Iran signed a 25-year cooperation agreement, stipulating that the oil trade between the two parties will be settled in RMB. After that, our country reached more agreements with the United Arab Emirates on the use of local currency settlement, and both parties used RMB for settlement in oil trade. my country’s use of RMB for settlement in trade with other countries not only helps reduce the risk of being sanctioned by the United States, but also helps the internationalization of RMB.

In addition to Iran and the United Arab Emirates, countries that currently use RMB to settle oil trade include Russia. The proportion of China-Russia trade settled in US dollars has dropped from 90% in 2015 to less than 30% currently. In the future, local currency settlement will be expanded. In fact, this is “de-dollarization.” In fact, as the status of the US dollar is “shaky”, more and more countries are joining the trend of “de-dollarization”. According to relevant media statistics, so far, at least 53 countries including Germany, the United Kingdom, Japan, Vietnam, Singapore, and Canada have begun to decentralize the U.S. dollar in different ways. The main methods include expanding local currency settlement, reducing the use of U.S. dollar assets, optimizing the structure of foreign exchange reserves, Increase gold reserves, etc.

It is worth mentioning that with the steady development of my country’s import and export trade, various trading partners may also increase their holdings of RMB when conducting trade settlements with my country. Statistics show that currently 29 countries, including Russia, Iran, Turkey and Venezuela, have gradually turned to the use of RMB in trade settlement or investment.

The over 500 billion textile market may not be affected by the exchange rate

Engaging in the foreign trade industry is not just You should pay attention to your own products, customers, and more importantly, exchange rate changes. Our textile industry is no exception, and given the particularity of textile orders, this impact is obvious. Because the period from quotation to final payment for fabric orders is often more than 3 months, it is difficult to judge changes in exchange rates during such a long period of time.

In early September last year, the exchange rate between the RMB and the US dollar was on the verge of breaking 7. On November 17, the central parity rate of the RMB exchange rate in the inter-bank foreign exchange market was: 1 US dollar to RMB 6.5762 , an increase of 286 basis points from the previous trading day, rising to 6.5 yuan. In just over two months, the exchange rate of RMB against the US dollar has undergone tremendous changes, and a large number of textile foreign trade companies have suffered huge losses. But if we can settle directly in RMB, we can avoid this risk.

Among the 29 countries that can use RMB in trade with my country, they are Vietnam, Kazakhstan, South Korea, Malaysia, Indonesia, Argentina, Turkey, Pakistan, Russia, Singapore, the United Kingdom, Canada, and Germany. These 13 countries imported more than 520 billion yuan of various textiles from my country in 2020. This is a very huge market, and all domestic enterprises engaged in textile foreign trade have more or less customer orders from these countries. As these countries gradually use RMB in trade settlement, our textile orders will one day be free to settle in RMB.

With the advancement of the global “de-dollarization” process, the global hegemony of the petrodollar will sooner or later fall aside. Of course, facing the decline of the hegemony of the US dollar, the United States is bound to save it at all costs. In this process, it is very likely that, as Kissinger predicted, conflicts will come one after another, and sooner or later they will get out of control, so he suggested…The United States should recognize the reality of China’s rise and reach an understanding with China on the new international order as soon as possible to maintain world stability.

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Author: clsrich

 
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