{"id":10473,"date":"2015-07-28T18:05:50","date_gmt":"2015-07-28T23:05:50","guid":{"rendered":"http:\/\/olduvai.ca\/?p=10473"},"modified":"2015-07-28T18:05:50","modified_gmt":"2015-07-28T23:05:50","slug":"the-rise-of-the-yuan-continues-lme-to-accept-renminbi-as-collateral","status":"publish","type":"post","link":"https:\/\/olduvai.ca\/?p=10473","title":{"rendered":"The Rise Of The Yuan Continues: LME To Accept Renminbi As Collateral"},"content":{"rendered":"

The Rise Of The Yuan Continues: LME To Accept Renminbi As Collateral<\/a><\/h3>\n

As far-fetched as the notion may be to those who are wedded – by choice, by misguided beliefs, or by virtue of being completely beholden to the perpetuation of the status quo – to idea that the dollar will forever retain its status as the world\u2019s reserve currency, the yuan is set to play a critical role in global finance, investment, and trade going forward.<\/p>\n

We\u2019ve long argued that the BRICS bank, the AIIB, and to an even greater extent, the Silk Road Fund, will help to usher in a new era of yuan hegemony in international investment and trade. A number of recent developments support this, including Beijing\u2019s push for the renminbi to play an outsized role in loans doled out through the AIIB, the\u00a0denomination of loans<\/a>\u00a0from the BRICS bank in yuan, and China\u2019s aggressive investment in Pakistan and Brazil via the Silk Road initiative (here<\/a>\u00a0and\u00a0here<\/a>).<\/p>\n

As for financial markets, China recently confirmed the\u00a0impending launch<\/a>\u00a0of a yuan denominated gold fix which conveniently dovetailed with the\u00a0LBMA\u2019s acceptance<\/a>\u00a0of the first Chinese banks to participate in the twice-daily auction that determines London gold prices.<\/p>\n

Now, in the latest sign of yuan proliferation and penetration,\u00a0the renminbi will be accepted as collateral by the LME along with the dollar, the euro, the pound, and the yen.<\/strong><\/p>\n

Here\u2019s\u00a0WSJ with more<\/a>:<\/p>\n

\n
China\u2019s domestic stock market may be in turmoil but the country\u2019s currency, known as the yuan or renminbi, is making a seemingly relentless push deeper into the global financial system.<\/em><\/div>\n

The latest step: the London Metal Exchange, the world\u2019s largest venue for trading metals where $15 trillion of metals was traded last year, is set to accept yuan as collateral for banks and brokers that trade on its platform.<\/em><\/strong><\/p><\/blockquote>\n

…click on the above link to read the rest of the article…<\/p>\n

\u00a0<\/i><\/p><\/blockquote>\n

 <\/p>\n

 <\/p>\n","protected":false},"excerpt":{"rendered":"

The Rise Of The Yuan Continues: LME To Accept Renminbi As Collateral As far-fetched as the notion may be to those who are wedded – by choice, by misguided beliefs, or by virtue of being completely beholden to the perpetuation of the status quo – to idea that the dollar will forever retain its status […]<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_monsterinsights_skip_tracking":false,"_monsterinsights_sitenote_active":false,"_monsterinsights_sitenote_note":"","_monsterinsights_sitenote_category":0,"footnotes":""},"categories":[2,5],"tags":[3502,56,90,1860,7602,130,1450,280,7603,7604,675,679,2632,839,1478,1031,4318],"class_list":["post-10473","post","type-post","status-publish","format-standard","hentry","category-economics","category-geopolitics","tag-aiib","tag-bank-of-england","tag-brazil","tag-brics","tag-british-pound","tag-china","tag-equity-markets","tag-euro","tag-lme","tag-pound","tag-renminbi","tag-reserve-currency","tag-silk-road","tag-us-dollar","tag-yen","tag-yuan","tag-zerohedge"],"_links":{"self":[{"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/posts\/10473","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/olduvai.ca\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=10473"}],"version-history":[{"count":1,"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/posts\/10473\/revisions"}],"predecessor-version":[{"id":10474,"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/posts\/10473\/revisions\/10474"}],"wp:attachment":[{"href":"https:\/\/olduvai.ca\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=10473"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/olduvai.ca\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=10473"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/olduvai.ca\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=10473"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}