CHINA RUSSIA
FINANCIAL UPDATE
This past
week saw the U.S. stock markets swing wildly up and down. Pressure is building
against the U.S. dollar as the U.S. Congress just passed a budget/spending
resolution that will increase the U.S. debt by at least another trillion
dollars.
The Chinese
are aggressively attacking the U.S. dollar with the opening of this oil futures
exchange. The Russians and Chinese are already trading in their own currencies.
Russian is China’s largest supplier of oil. Together these two nations are
form a powerful new currency and trading bloc.
America’s
role in future Biblical events is going to be reduced due to God’s chastisement
upon the nation. We are headed for a severe financial crises and fall of the
U.S. dollar. This oil exchange will allow those nations who look upon America
as their enemy great freedom from the U.S. led monetary order.
The current
political division, chaos, debt, and lawlessness in America is causing many
nations to turn away from U.S. monetary system. Fasten your seatbelts as 2018
is the beginning of coming major financial crises and change.
The ultimate
result will be fulfillment of end time Biblical prophecies concerning the
return of Y’shua after the Great Tribulation. Search this blog for other
articles concerning Russia and China for greater insight.
China is ready for its own, yuan-based oil Benchmark as
the Shanghai futures exchange is welcoming all parties wanting to break with
U.S. dominance.
Final preparations are underway at the Shanghai
International Energy Exchange, or INE, in the city's pilot free trade zone.
After five system tests in 2017, the trading platform has had small glitches
but is nearly set to go, according to Tang Yun, an assistant to the president
of Shanghai-based East Asia Futures. Trading in yuan could start by March, once
the authorities give the go-ahead.
The government is determined to turn the INE's crude oil
futures into a global benchmark, and to do so it needs to get large numbers of
traders involved. The more participants a market attracts, the more liquid it
will be, and the more it will inspire confidence.
Now China is calling on oil producers and consumers --
from global majors to its own big players -- to participate in the new market.
The INE plans to handle seven kinds of Middle Eastern crude, including Basra
Light produced in Iraq, Dubai crude and Oman crude.
Once this energy exchange opens China will officially be
challenging the U.S. led world financial order. The plan is for the exchange to
open March 26, 2018. Initially the dollar will be accepted, but the oil will be
priced in Yuan. It will potentially give the Shanghai International
Energy Exchange (INE), which will operate the new contract, a share of the
trillions of dollars each year in oil futures trading.
Asia has become the world’s
biggest oil consuming region, and China hopes its own derivative crude contract
will better reflect market conditions in the region.
The two most active oil
futures contracts in the world are the West Texas Intermediate (WTI) CLc1
contract offered by the New York Mercantile Exchange (NYMEX), owned by CME
Group (CME.O),
and the Brent LCOc1 contract offered by the Intercontinental Exchange (ICE.N)
from London.
WTI futures are an important
component of physical oil prices in the Americas, while Brent plays a vital
role for prices for Middle Eastern, European and Asian crude.
John Browning, chief operating
officer of Hong Kong-based futures broker Bands Financial Ltd, which has been
approved by the CSRC as an overseas intermediary for the INE, said
international participation in the contract was crucial to ensure INE pricing
truly reflects global trade flows.
“The principal driver for the
choice of this contract is to enable China to develop its own benchmark for oil
pricing while increasing the trade of renminbi-denominated oil,” Browning said
in a statement, using another name for the Chinese currency.
But while the contract will be
quoted in yuan, “the exchange will accept USD as collateral for initial
margin,” opening the way for participation by non-Chinese companies, he added.
https://www.reuters.com/article/us-china-oil-futures/china-plans-to-launch-crude-oil-futures-on-march-26-securities-regulator-idUSKBN1FT0P2
A more conservative article:
http://www.theedgemarkets.com/article/chinas-currency-still-nowhere-near-overtaking-dollar-global-payments
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