Skip to main content

A second Middle Eastern country within a week announces it will begin selling bonds in Chinese RMB

A few days ago, Saudi Arabia announced they were in the process of diversifying away from the dollar and are planning to sell sovereign bonds in RMB in order to shore up their dwindling coffers.  Now on Aug. 31, a second Middle Eastern Gulf nation is reporting to be doing the same as the UAE government of Sharjah could actually beat the Saudi’s to the punch and be the first to receive Chinese Yuan from the sale of sovereign bonds.
The government of the emirate of Sharjah plans to issue a yuan-denominated bond in China, which could make it the first Middle East issuer in the Chinese interbank bond market, according to sources familiar with the matter.
Sharjah, one of the seven members of the United Arab Emirates, is in the process of applying to issue the instrument, known as a panda bond, said the sources, who declined to be named as the matter is not yet public.
Gulf governments and companies have boosted bond issuance over the past year because low oil prices have pushed state budgets into deficit and tightened liquidity in their banking systems.
To encourage greater global use of the yuan and diversify funding sources for its belt and road trade route connecting China by land and sea to Europe, Beijing is keen to attract more foreign issuers of bonds. Its interbank bond market is the third largest after the United States and Japan. – South China Morning Post
The significance of these moves of course by Saudi Arabia and Sharjah are that they represent a continuing exit from the long-standing petrodollar agreement, and an acknowledgement of the financial strength of the Chinese economy and banking systems.
As more and more OPEC and oil producing countries diversify out of dollar denominated assets and debt, the more the U.S. loses market share as the singular global reserve currency.  And with the dollar already beginning to experience its own hemorrhaging by falling over 10% since the beginning of the year, it will soon open the door for more countries to look Eastward towards China, and quicken the end of dollar hegemony over the global financial system.
Kenneth Schortgen Jr is a writer for The Daily Economist, Secretsofthefed.com, Roguemoney.net, and Viral Liberty, and hosts the popular youtube podcast on Mondays, Wednesdays and Fridays. Ken can also be heard Wednesday afternoons giving an weekly economic report on the Angel Clark radio show.

Comments

Post a Comment

Popular posts from this blog

How Blockchain Could Help Tech Giant Cisco Reboot

Cisco is changing. The technology firm best known as the supplier of enterprise computer hardware has seen a slow, steady decline in revenue from some of its core products. As a result of an increasing number technological services being virtualized, and the storage of information moving to the cloud, the $158bn firm has been  restructuring  and exploring new ways to capitalize on connected devices. But amidst this change in identity, it's in identity itself where some of the California-based company's most interesting new experiments are taking place. With a series of early stage blockchain  projects , Cisco is now pushing even deeper into what could end up being much more than a way for employees to prove who they are across subsidiaries. In conversation with CoinDesk, Robert Greenfield IV, Cisco software engineer and executive team lead of the firm's Connected Black Professionals resource group, explained how several blockchain projects have evolv...
Post a Comment
Read more

Bitcoin in Africa: Insights from the Continent’s Biggest Bitcoin Exchange

Isn’t it absurd that nearly 326 million people representing 80% of the adult population in Africa do not have access to bank accounts? This wretched situation denies countless of people financial freedom in the so-called dark continent. Bureaucratic tenors and economic exclusion inter alia have paved the way for the current phenomenon. Last year a study of 10 African nations with unusual inflationary ratio had South Sudan registering an unimaginable inflation rate of 295 percent. Egypt had the slightest with 12.30 percent. African governments continue to plunder the riches of the African people through Inflation. This makes it considerably insurmountable for individuals to conserve their resources. Moreover, public sector borrowing has crowded out the efficient private sector that can put credit to good use. The IMF estimates that averagely credit to the private sector is estimated at 30 percent of GDP in Sub-Sahara Africa. CCN spoke to Werner van Rooyen, Head of Business Develo...
Post a Comment
Read more

WANT TO BUY BITCOIN IN SOUTH AFRICA , KENYA, UGANDA, NIGERIA, GHANA OR OTHER COUNTRIES IN AFRICA? SIMPLE.

With the growing awareness around Africa of bitcoin as a crypto-currency, a means of remittance and a creator of  wealth, more and more people in more and more countries are looking to buy it, and asking how and where they can buy it. Purchasing bitcoin is simple. Simply go online and do a search for “Buying and selling bitcoin in South Africa ““Buying and selling bitcoin in Kenya “Buying and selling bitcoin in Uganda ““Buying and selling bitcoin in Nigeria “ or  “Buying and selling bitcoin in Ghana“ – you get the idea.   To help you though:   In South Africa, three of the most common (and trusted) platforms are: www.localbitcoins.com www.luno.com www.bitx.co In Kenya, the most common (and trusted) platforms) are: www.localbitcoins.com www.bitpesa.co whilst other platforms include: www.altcoins.io www.99bitcoins.com In Uganda, the most common (and trusted) platforms) are: www.localbitcoins.com www.bitpesa.co whilst other platforms incl...
Post a Comment
Read more