Deutsche Bank becomes first foreign yuan clearing bank in Europe
China has authorized Deutsche Bank to clear renminbi transactions in Europe, making it the first foreign institution to hold this role in the region. The bank will operate from Frankfurt, expanding Beijing's overseas yuan network. This move aims to facilitate direct yuan settlement for European companies and reduce reliance on dollar-based payment routes.
The designation followed a memorandum of understanding between Deutsche Bank and the People’s Bank of China.
- pizzathyme
The US wields incredible negotiating power and hegemony because the dollar is the world’s reserve currency. Like the British pound and the Dutch guilder before it, if that loses reserve currency status it will be harder to borrow on favorable terms, which would affect the entire US economy. This is a big step in that perhaps starting to happen over the next few decades.
- qprofyeh
I wonder if it has anything to do with the currency apparently being backed by an immense reserve of oil (proven to the world by this year's geopolitical events), then coal, and then a massive amount of renewable solar, hydro, wind kWh's and infrastructure to deliver it to homes and shops.
More and more it feels like a nation's kWh throughput is the new metric to track its global influence in manufacturing, industry, and financial services. In other words electric power now equates to global power.
- WhyNotHugo
An interesting move. Something that drives me crazy when interacting with China, is that I can only use American payment methods to make a payment from Europe to China. I pay a fee and the merchant pays a fee both to the US. It just sounds broken. I hope this is a step in eventually resolving this.
- jagermo
Of course it's Deutsche Bank, I am sure nothing shady will come of that.
- JimmyBuckets
It will be interesting to see how much of Thucydides Trap plays out in currency and trade as opposed to military conflict. I am hopeful that economic and financial warfare absorbs the brunt of the power struggle.
- photios
B...b...b...but who's going to take care of AML procedures and FATF regulations. We'll get drowned in money laundering! :D
- aljgz
Change happens gradually, and then suddenly.
- hk1337
I'm curious what other banks have this ability? Is this the first foreign yuan clearing bank in Europe or in the World?
- penguin_booze
Cozying up to China warrants caution. But moving away from USD is an absolute imperative. It's good to have options, you know.
- Kuyawa
The thing I hate the most about current world affairs is the american money printing machine. It is spreading their own internal inflation through out the whole world and we have to suck it hard just to keep their political dominance.
Waiting for the dollar to collapse in the next 100 years and see what it brings to the political arena whether it's for better or worse. I am not afraid of the devil showing off its ugly face, whoever the new devil may be.