The New Development Bank (NDB)
has started prioritizing projects for 2016, according to Russian
Industry and Trade Minister Denis Manturov.
NDB was established by the BRICS member states – Brazil, Russia,
India, China and South Africa – in 2014 to complement the World Bank.
The bank’s main goal is to promote sustainable development in BRICS
states. In July the bank opened for operations in Shanghai with the
startup capital of $50 billion.
“BRICS New Development Bank which has already started the selection of next year’s priority projects, will contribute in attracting investment in joint projects in a wide range of industries,” Manturov said Tuesday at the first meeting of BRICS industry ministers in Moscow.
Russia has developed a roadmap of trade and investment cooperation
with all the BRICS countries through till 2020, the minister added. It
includes projects in manufacturing, mining, engineering, energy and many
other sectors of the economy.“We are ready to work them out and
determine the range of initiatives that will be implemented jointly with
the assistance of the new development bank and national mechanisms of
support,” the minister said.“BRICS New Development Bank which has already started the selection of next year’s priority projects, will contribute in attracting investment in joint projects in a wide range of industries,” Manturov said Tuesday at the first meeting of BRICS industry ministers in Moscow.
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#BRICS bank opens for operations in Shanghai http://on.rt.com/6ng1
https://www.rt.com/business/319173-brics-bank-projects-cooperation/
CHINA CALLS FOR NEW GLOBAL CURRENCY
China is calling for a global currency to replace the dominant dollar, showing a growing assertiveness on revamping the world economy ahead of next week’s London summit on the financial crisis.
The surprise proposal by Beijing’s central bank governor reflects unease about its vast holdings of U.S. government bonds and adds to Chinese pressure to overhaul a global financial system dominated by the dollar and Western governments. Both the United States and the European Union brushed off the idea.
The world economic crisis shows the “inherent vulnerabilities and systemic risks in the existing international monetary system,” Gov. Zhou Xiaochuan said in an essay released Monday by the bank. He recommended creating a currency made up of a basket of global currencies and controlled by the International Monetary Fund and said it would help “to achieve the objective of safeguarding global economic and financial stability.”
Zhou did not mention the dollar by name. But in an unusual step, the essay was published in both Chinese and English, making clear it was meant for a foreign audience.
China has long been uneasy about relying on the dollar for the bulk of its trade and to store foreign reserves. Premier Wen Jiabao publicly appealed to Washington this month to avoid any response to the crisis that might weaken the dollar and the value of Beijing’s estimated $1 trillion in Treasuries and other U.S. government debt.
For decades, the dollar has been the world’s most widely used currency. Many governments hold a large portion of their reserves in dollars. Crude oil and many commodities are priced in dollars. Business deals around the world are done in dollars.
http://abcnews.go.com/Business/story?id=7168919&page=1
One day it sure as shit will….I dont think it will be the yuan and if it is it won’t last for more than a few years…
The 2 quadrillion derivatives bubble is meant to take down every paper currency on earth and most likely every corporation
Use of derivatives is growing in anticipation of a hike in global interest rates. The increased demand for hedging instruments is placing a strain on dealers, which face rising derivatives trading costs as a result of recent regulation.
A new report, Corporate Derivatives Use Continues to Grow — Dealers Say Not So Fast, released by Greenwich Associates examines the results of a study of nearly 400 corporate treasurers globally and finds that corporate use of derivatives has climbed since the financial crisis with the annual interest-rate derivatives trading volume of the typical big corporate user growing to $3 billion in 2014 from $2 billion in 2006. The vast majority of these users—87% of study respondents—say new regulations have had no impact on their use of derivatives.
The story is much different for the dealers which companies rely on to execute these trades. While Dodd-Frank exempted corporate “end users” from its trading and clearing mandates, dealers executing bilateral trades with these clients are subject to much higher capital costs than those imposed on cleared trades for other clients. “Banks will be, and in some cases already are, passing these new costs down to the client,” says Kevin McPartland, Head of Market Structure and Technology Research at Greenwich Associates.
Over half the corporations participating in the study are paying credit charges to their dealer as part of the initial transaction to offset the dealer’s cost of capital under Basel III.
http://www.commodities-now.com/reports/portfolio-management/18860-corporate-use-of-derivatives-up-50-post-crisis.html
In yet another sign of its growing prominence on the global financial stage, China called for a new world reserve currency to replace the dominant dollar.
An ABC news report said China is showing “growing assertiveness” on revamping the world economy:
The surprise proposal by Beijing’s central bank governor reflects unease about its vast holdings of U.S. government bonds and adds to Chinese pressure to overhaul a global financial system dominated by the dollar and Western governments.”
http://schiffgold.com/key-gold-news/china-calls-for-new-global-reserve-currency-to-replace-dollar/?utm_medium=social&utm_source=twitter&utm_campaign=gold-news&utm_content=peterschiff
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China calls for new global currency @abcnews http://abcnews.go.com/Business/story?id=7168919&page=1 …
China’s money supply growth dwarfs the rest of the world
A file picture dated 10 May 2011 shows Chinese 100 yuan or Renminbi (RMB) notes and coins in Beijing, China. China is moving to boost the international strength of its currency by announcing on 03 November 2014 plans to turn Frankfurt, Germany into the eurozone centre for trading in the yuan. Transactions in yuan in a newly established clearing house operated by the Bank of China will begin on November 17.
hina’s broad money supply growth between 2007 and 2013 was greater than that of the rest of the world combined, spurring the country’s rapid economic expansion but creating the risk of asset price bubbles and widespread loan defaults.
Analysis by Ousmène Jacques Mandeng, a former deputy division chief at the International Monetary Fund, suggests China’s broad money rose by $12.9tn in the seven years to 2013, outstripping the $11tn rise of the rest of the world.
“The Chinese money wall may well dwarf anything in the international financial system including unconventional monetary policy [such as quantitative easing],” says Mr Mandeng, who describes China’s growth of M2 broad money — a measure that includes cash in circulation, savings and time deposits — as “scary”.
“This is a reflection of massive expansion of bank balance sheets in China. It’s a big, big thing and it is lost on most people,” he says.
Mr Mandeng is head of research and development at New Sparta Asset Management, an emerging markets-focused house set up by Jerome Booth, the co-founder of Ashmore.
He calculates that China’s M2 rose 18.4 per cent a year between 2008 and 2013.
http://www.ft.com/intl/cms/s/3/c85cb7b0-62a1-11e5-9846-de406ccb37f2.html
The key for China is gaining the support of a major financial centre in the West, otherwise everything they spout is just hot air, but it seems the City of London is the go to place at the moment to turn those Chinese dreams into reality, especially now they have removed the RFQII cap with the UK and replaced it was a market demand cap, and are now planning to issue short term RMB denominated debt in London..
Be interesting to see the speech Xi will give in the City of London today, and what deals are signed, thus far all we know is 150 deals are to be signed, and some of them are financial ones.. but the BoE seems to be betting the bank on China, hence supporting the internationalisation phase…
Honestly, can’t see any of this going down well the US and the Special Relationship… and to be honest I have no idea where this will leave US/UK relations.. I guess it’s a wait and see moment, could all be more hot air or could be something much more..
China to issue short term debt in London.
http://www.ft.com/intl/cms/s/3/c85cb7b0-62a1-11e5-9846-de406ccb37f2.html#axzz3pCE90EOA
I.O.A.
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