Frankfurt is joining London, Singapore and Hong
Kong in the fast-moving market for bonds denominated in the Chinese
currency, the renminbi. Germany’s KfW development bank announced it
was issuing a two-year bond with the volume of 1 billion renminbi at
the Frankfurt Stock Exchange.
Germany signed agreements with Chinese financial authorities in March that permit the sale of Dim Sum bonds at the Frankfurt Stock Exchange. The deal also means Frankfurt will become the first offshore “clearing center” for exchanging euros for renminbi, which are needed for buying Dim Sum bonds.
Germany signed agreements with Chinese financial authorities in March that permit the sale of Dim Sum bonds at the Frankfurt Stock Exchange. The deal also means Frankfurt will become the first offshore “clearing center” for exchanging euros for renminbi, which are needed for buying Dim Sum bonds.
KfW joins renminbi bond fray with first
Frankfurt-listed deal
KfW may have sold the first Frankfurt-listed
Chinese renminbi bond this week, but some market watchers say the
Triple A rated issuer’s new sale is a long way off from providing
the impetus for a larger shift in Dim Sum market dynamics.
Germany’s largest promotional bank is
supporting the recent initiative to promote Frankfurt as a financial
centre for renminbi, which is backed by several parties both in
politics and the wider economy.
Frankfurt
hub to help make RMB a global currency
Frankfurt becomes Europe’s first renminbi
payment hub
Goes along with what Dr. Ben Carson is warning
about
“We have a national debt that is so high, and it’s being raised even higher,” he said. “Now, the only reason we can do that is because we are the reserve currency for the world. What if that changes?”
“We have a national debt that is so high, and it’s being raised even higher,” he said. “Now, the only reason we can do that is because we are the reserve currency for the world. What if that changes?”
“What if other people come along?” Carson
asked, saying China and the U.N have mentioned doing the same. “We
would become a third-world nation overnight. Occupy Wall Street would
be a walk in the park. And all of a sudden, the things that would be
going on in this country which would necessitate marital law… all
this could happen very rapidly. We should be really concerned.”
GOLD AN SILVER ANYONE?
Max Bacon
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