China and Japan plan direct currency exchange agreement
China and Japan have unveiled plans to promote direct exchange of their currencies in a bid to cut costs for companies and boost bilateral trade.
The deal will allow firms to convert the Chinese and Japanese currencies directly into each other.
Currently businesses in both countries need to buy US dollars before converting them into the desired currency, adding extra costs.
It is the latest step by China as it seeks a more global role for the yuan.
“Given the huge size of the trade volume between Asia’s two biggest economies, this agreement is much more significant than any other pacts China has signed with other nations,” Ren Xianfang of IHS Global Insight was quoted as saying by the Bloomberg news agency.
China is Japan’s biggest trading partner. According to the Japan External Trade Organization, trade between the two countries stood at 26.5tn yen ($339bn; £218bn) in 2010.
This should encourage Japanese private investment into Chinese bonds, as well as into other Asian emerging currencies”
End Quote Takuji Okubo Societe Generale
The plans were announced during a visit to China by Japan’s Prime Minister Yoshihiko Noda and after a meeting with Chinese Premier Wen Jiabao.
The two leaders also agreed to allow the Japan Bank for International Cooperation to issue yuan-denominated bonds in China, the first time a foreign government body has been allowed to do so.
At the same time, Japan said it was also looking to buy Chinese government bonds, a move that analysts believe may prove to be mutually beneficial to both nations.
“By adopting Chinese bonds as a part of official foreign exchange reserves, Japan is labelling Chinese bonds as an investable asset,” according to Takuji Okubo of Societe Generale Tokyo.
“This should encourage Japanese private investment into Chinese bonds, as well as into other Asian emerging currencies. Such development in turn should help develop offshore currency trading in Japan,” he added.
As for China, Mr Okubo explained that the move will help China further open up its financial markets.
The deal “is a manifest of a higher level of commitment from China to the open-up reform, which would add credibility to the ongoing offshore yuan experiment”, he said.
Along with promoting bilateral business ties, China and Japan said they had also made progress on a free trade agreement between China, Japan and South Korea.
The proposed agreement is expected to boost trade between the three nations.
“On a free-trade agreement among Japan, China and South Korea, we’ve made a substantial progress for an early start of negotiations,” Mr Noda said.
China has been pushing for the three parties to speed up talks and proceedings on the deal, especially after Japan showed a keen interest to participate in the Trans-Pacific Partnership Agreement (TPP).
It is aimed at eliminating tariffs and other barriers to goods and services trade and investment among the member countries to boost growth. Source link
Slowly a crash is coming to America; the countries are the easts are slowly cutting out the America dollar. Knowing the Government of America is unable to pay back the debt, they are turning away from America trading among them. The powerful in Washington are off shoring their wealth and protecting their wealth from American laws they have a future in the new world.
These empty promises in Washington are only distractions, and feeding the nation false hope they hope to keep the nation in the dark until the final stage of their plans. They will disarm the nation changing the law to protect themselves against uprisings they will bring the nation under their control and power.
Revelation 13:2-5 And the beast which I saw was like unto a leopard, and his feet were as the feet of a bear, and his mouth as the mouth of a lion: and the dragon gave him his power, and his seat, and great authority. And I saw one of his heads as it were wounded to death; and his deadly wound was healed: and all the world wondered after the beast. And they worshipped the dragon which gave power unto the beast: and they worshipped the beast, saying, Who is like unto the beast? Who is able to make war with him? And there was given unto him a mouth speaking great things and blasphemies; and power was given unto him to continue forty and two months.
After the collapse of the American economy new laws will be put in place destroying the constitution of America, there will be an upraise as we saw in Greece but due to the disarmament of its citizens the revolt will be put down by the new governments of the world. What are we, salves in teh world of those who plan to live off our strength?
Revelation 13:7-9 And it was given unto him to make war with the saints, and to overcome them: and power was given him over all kindreds, and tongues, and nations. And all that dwell upon the earth shall worship him, whose names are not written in the book of life of the Lamb slain from the foundation of the world. If any man have an ear, let him hear.
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