Official exchange rate launched for Chinese yuan and Cambodian riel

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Official exchange rate launched for Chinese yuan and Cambodian riel

Post by CEOCambodiaNews » Fri Sep 29, 2017 7:40 pm

Official exchange rate launched for Chinese yuan and Cambodian riel
September 28, 2017 23:13
PHNOM PENH - The National Bank of Cambodia (NBC) and the People’s Bank of China in the autonomous Guangxi region of southern China have launched an official yuan-riel exchange rate that allows businesses and individuals to conduct trade settlement activities without using the US dollar as an intermediary currency, an NBC official said yesterday.

NBC Director-General Chea Serey said the yuan-riel exchange rate mechanism was officially launched earlier this month, allowing banks in Guangxi to quote and exchange the two national currencies directly.

“Before, this [could only] be done in Cambodia. Now it can be done in China too,” she said, adding that currently the valuation of the two currencies was done by benchmarking them against the US dollar. “As the volume of trade settlement in local currencies increases, we will be able to determine a direct quotation without going through the US dollar,” she said...
More : http://www.nationmultimedia.com/detail/aec/30327975
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Re: Official exchange rate launched for Chinese yuan and Cambodian riel

Post by AndyKK » Fri Sep 29, 2017 7:49 pm

^Interesting! Anyone's prediction of how long it will take for the Yuan to replace the Dollar?
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Re: Official exchange rate launched for Chinese yuan and Cambodian riel

Post by xxxxxxx » Fri Sep 29, 2017 8:25 pm

AndyKK wrote:
Fri Sep 29, 2017 7:49 pm
^Interesting! Anyone's prediction of how long it will take for the Yuan to replace the Dollar?
Excited (!) by that prospect, are ya?

Chinese debt as a % of GDP is already at US levels, but their debt is mostly held by its 1.4 billion citizens in government-run banks. Chinese individual's bank accounts are not backed up by any official government policy or insurance program. If a Chinese bank goes under, it takes all depositors money down with it. The saver has no recourse, they just lose their deposits. When their bank's and provincial government debt bubbles do burst, sit back watch the ensuing public outrage. It's exactly like the US banking system circa 1929 which kicked off the Great Depression.

Add to that the fact that the Chinese government arbitrarily devalues it's own currency whenever it desires to give it's economy a bounce. The US has no history of doing so with the dollar, and they couldn't now if they tried because the dollar is so widely held that the FED can't control the valuation directly. It can only increase or decrease the interest rate over time, which is a much slower process of currency manipulation. Interest rate changes take many months to affect the economy. Devaluing the currency directly as a matter of policy is an immediate punch in the face to those who hold the RMB.

So for all those who gloat and cheer every indication of the US in overall decline and China on the rise, be careful what you wish for.
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Re: Official exchange rate launched for Chinese yuan and Cambodian riel

Post by CEOCambodiaNews » Sun Jan 13, 2019 8:52 pm

China promotes use of yuan among Southeast Asian nations
Published January 12, 2019, 9:57 AM
By Reuters
China’s state council, or cabinet, has agreed to build Guangxi, which borders Vietnam, into a financial gateway between the Association of Southeast Asian Nations (ASEAN) and China, the world’s second biggest economy, the People’s Bank of China (PBOC) said in a statement on its website.

As a key objective of the plan, China will promote the use of the yuan among ASEAN countries, with plans to facilitate cross-border trade settlement, currency transactions, investment and financing in the Chinese currency.
https://business.mb.com.ph/2019/01/12/c ... n-nations/
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Re: Official exchange rate launched for Chinese yuan and Cambodian riel

Post by Barang chgout » Sun Jan 13, 2019 9:59 pm

I'm dumb, but would the real be tied to the yuan as it has been tied to the dollar? And what might that mean?

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Re: Official exchange rate launched for Chinese yuan and Cambodian riel

Post by clutchcargo » Sun Jan 13, 2019 10:07 pm

AndyKK wrote:
Fri Sep 29, 2017 7:49 pm
^Interesting! Anyone's prediction of how long it will take for the Yuan to replace the Dollar?
I'm more interested in knowing when will Cambodia have the Riel as it's sole currency?
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Re: Official exchange rate launched for Chinese yuan and Cambodian riel

Post by explorer » Mon Jan 14, 2019 4:07 am

Barang chgout wrote:
Sun Jan 13, 2019 9:59 pm
I'm dumb, but would the real be tied to the yuan as it has been tied to the dollar? And what might that mean?
It will be interesting to see if the money changers start displaying the yuan rate as well as the dollar. It will probably happen, it is just a matter of how long before it happens.

When you get fluctuation between the yuan and dollar, you are likely to get devaluation of the riel.
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Re: Official exchange rate launched for Chinese yuan and Cambodian riel

Post by explorer » Mon Jan 14, 2019 4:12 am

clutchcargo wrote:
Sun Jan 13, 2019 10:07 pm
I'm more interested in knowing when will Cambodia have the Riel as it's sole currency?
Unlikely to happen anytime soon. People dont trust the riel. If it ever does happen, expect devaluation, so people will resort to more stable currencies again. That is why they use the dollar now.

Historically gold was used as a currency. People used to buy and sell things using gold.
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Re: Official exchange rate launched for Chinese yuan and Cambodian riel

Post by frank lee bent » Mon Jan 14, 2019 7:53 am

Too canny to decouple from the usd
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