China insists on using RMB to buy ore and no longer plays with US dollars. The United States asked Australia to sell in US dollars, but as a result, it did not use ore and was unable to take over the offer. Australia has no choice but to listen to China. Nowadays, more and more countries are willing to accept RMB. After all, those who have been stuck in their necks by the US dollar understand it. Only when they have choices can they be practical.
This wave of operations directly hit the sensitive point of the United States.The United States is in a hurry to send a message to Australia, demanding that the other party must persist in settling the trade in minerals with the dollar, and put a set of tactics to control the global situation.
But the United States can't digest much ore itself. Its domestic steel production capacity is only so small, and its annual import volume is less than a fraction of Australia's total exports, so it is impossible to accept Australia's ore orders.
In the iron ore it exports annually, China buys more than 60% of it, and the Chinese market is its "clothes and food parents."
The attitude of China buyers is very clear. If they want to buy ore, they must settle in RMB and there is no negotiation. Australia miners are in a hurry, with pressure from the United States on the one hand and actual demand from the China market on the other.
In the end, the reality overcame the political pressure.Australia's largest mining enterprise led Matsushita, reached a long-term agreement with Chinese treasury to settle the RMB, and other mining enterprises followed up.
They know more than anyone in their hearts that if they lose the Chinese order, their own mines will have to stop production, and workers will be unemployed, and no one will bear the consequences.
China can so hard gas, the bottom gas all from the market position and early layout. first steel shares have long tried to use blockchain technology to make cross-border iron ore yuan payments, the whole process is fast and safe, to the industry played a good look.
This is not an instantaneous rise of pressure, but a thoughtful strategic layout.The performance of the dollar over the years is too insecure.
As of 2023, the US dollar accounts for 58% of global foreign exchange reserves, and the daily turnover of the foreign exchange market is as high as 88%. This monopoly position has caused many countries to suffer.
As soon as the United States raises interest rates, other countries will have to bear the pressure of capital outflows and currency devaluations. If the United States targets sanctions, the US dollar settlement channel will be directly cut off, and business will not be able to do.
Russia has learned a painful lesson. The share of the US dollar in its international reserves plummeted from 43% in 2018 to 10% in 2023, forcing it to find another way out.
These countries that have been stuck by the US dollar were all moved when they saw China pushing RMB settlement. The more choice in hand, the more security, and no one wants to put eggs in one basket.
The share of the Chinese-Russian bilateral trade in the dollar decreased from almost 90% in 2015 to 46% in 2020, and the use of South African yuan in 2016 increased by 65%.
Even India and Russia’s trade is increasing the settlement in the country’s currency, rising from 6 percent to 30 percent, as other resource countries look hot.
The Yuan cross-border payment system (CIPS) has become an important pathway to bypass SWIFT, safe and independent, so that countries can use it.
The new development bank is more powerful, and 30% of the loans to the BRICS projects have used non-dollar currencies, directly to the US hegemony.
Resource countries soon discovered that there were too many benefits of receiving RMB. Settlement in RMB can save a lot of handling fees and exchange costs without changing hands into US dollars.
More importantly, it can avoid the risk of fluctuations in the US dollar, make corporate accounts more stable, and the government doesn't always have to look at the face of the Federal Reserve when formulating economic policies.
Brazil followed the taste of sweetheads, after it settled with yuan on China's iron ore exports, the share of people's coins in foreign exchange reserves quietly increased a lot.
Argentina is also quick to follow up, after all, the people's currency in the hand can directly buy Chinese industrial goods, rather than holding the dollar to exchange.
These changes left the calculation of the United States empty.It originally wanted to rely on the dollar to bind global trade, and as a result, China, with real market demand, hardship broke the other way.
More and more countries realize that relying on the dollar is to give soft ribbon to others, and the RMB is settled as a safe "house".
Russia’s gold reserves rose from 1250 tons in 2015 to 2350 tons in 2023, and China added to 2235 tons, all in preparation for getting out of the dollar.
Now even some European companies are proactively demanding to settle mines in RMB.Their imported iron ore will eventually be sold to the Chinese market, directly with RMB transactions can save a lot of trouble.
Australian mining companies have thoroughly figured it out. Now, they not only take the initiative to pay RMB for settlement, but also use the RMB they receive to purchase mining machinery and technical services in China, forming a perfect closed loop.
The United States is still hard-mouthed, saying that the RMB can't become a climate, but the data will not deceive people. The proportion of RMB settlement of China's iron ore imports has risen from almost zero a few years ago to more than 30% now.
This number is still rising. After all, doing business is realistic, and whoever is convenient and safe can be used.
The former Ethiopian minister said quite truthfully that the de-dollarization is not a confrontation, but that countries want to protect their financial autonomy.
China does not force anyone to use the yuan, but only offers a more reliable option.This choice has stamped the pain of the global market, and naturally someone is willing to accept the offer.
The foundation of the dollar hegemony is loosing.It relies on the accumulation of the past, while the yuan relies on the current demand and the security of the future.
If the United States still holds the old mind, forcing allies to go with themselves, eventually even allies can not stay. after all, in the face of interests, no one will go with money and security.
When China buys ore with RMB, it buys not only resources, but also the right to speak in global trade and the initiative in financial security. This move is steady and far.
This wave of operations directly hit the sensitive point of the United States.The United States is in a hurry to send a message to Australia, demanding that the other party must persist in settling the trade in minerals with the dollar, and put a set of tactics to control the global situation.
But the United States can't digest much ore itself. Its domestic steel production capacity is only so small, and its annual import volume is less than a fraction of Australia's total exports, so it is impossible to accept Australia's ore orders.
In the iron ore it exports annually, China buys more than 60% of it, and the Chinese market is its "clothes and food parents."
The attitude of China buyers is very clear. If they want to buy ore, they must settle in RMB and there is no negotiation. Australia miners are in a hurry, with pressure from the United States on the one hand and actual demand from the China market on the other.
In the end, the reality overcame the political pressure.Australia's largest mining enterprise led Matsushita, reached a long-term agreement with Chinese treasury to settle the RMB, and other mining enterprises followed up.
They know more than anyone in their hearts that if they lose the Chinese order, their own mines will have to stop production, and workers will be unemployed, and no one will bear the consequences.
China can so hard gas, the bottom gas all from the market position and early layout. first steel shares have long tried to use blockchain technology to make cross-border iron ore yuan payments, the whole process is fast and safe, to the industry played a good look.
This is not an instantaneous rise of pressure, but a thoughtful strategic layout.The performance of the dollar over the years is too insecure.
As of 2023, the US dollar accounts for 58% of global foreign exchange reserves, and the daily turnover of the foreign exchange market is as high as 88%. This monopoly position has caused many countries to suffer.
As soon as the United States raises interest rates, other countries will have to bear the pressure of capital outflows and currency devaluations. If the United States targets sanctions, the US dollar settlement channel will be directly cut off, and business will not be able to do.
Russia has learned a painful lesson. The share of the US dollar in its international reserves plummeted from 43% in 2018 to 10% in 2023, forcing it to find another way out.
These countries that have been stuck by the US dollar were all moved when they saw China pushing RMB settlement. The more choice in hand, the more security, and no one wants to put eggs in one basket.
The share of the Chinese-Russian bilateral trade in the dollar decreased from almost 90% in 2015 to 46% in 2020, and the use of South African yuan in 2016 increased by 65%.
Even India and Russia’s trade is increasing the settlement in the country’s currency, rising from 6 percent to 30 percent, as other resource countries look hot.
The Yuan cross-border payment system (CIPS) has become an important pathway to bypass SWIFT, safe and independent, so that countries can use it.
The new development bank is more powerful, and 30% of the loans to the BRICS projects have used non-dollar currencies, directly to the US hegemony.
Resource countries soon discovered that there were too many benefits of receiving RMB. Settlement in RMB can save a lot of handling fees and exchange costs without changing hands into US dollars.
More importantly, it can avoid the risk of fluctuations in the US dollar, make corporate accounts more stable, and the government doesn't always have to look at the face of the Federal Reserve when formulating economic policies.
Brazil followed the taste of sweetheads, after it settled with yuan on China's iron ore exports, the share of people's coins in foreign exchange reserves quietly increased a lot.
Argentina is also quick to follow up, after all, the people's currency in the hand can directly buy Chinese industrial goods, rather than holding the dollar to exchange.
These changes left the calculation of the United States empty.It originally wanted to rely on the dollar to bind global trade, and as a result, China, with real market demand, hardship broke the other way.
More and more countries realize that relying on the dollar is to give soft ribbon to others, and the RMB is settled as a safe "house".
Russia’s gold reserves rose from 1250 tons in 2015 to 2350 tons in 2023, and China added to 2235 tons, all in preparation for getting out of the dollar.
Now even some European companies are proactively demanding to settle mines in RMB.Their imported iron ore will eventually be sold to the Chinese market, directly with RMB transactions can save a lot of trouble.
Australian mining companies have thoroughly figured it out. Now, they not only take the initiative to pay RMB for settlement, but also use the RMB they receive to purchase mining machinery and technical services in China, forming a perfect closed loop.
The United States is still hard-mouthed, saying that the RMB can't become a climate, but the data will not deceive people. The proportion of RMB settlement of China's iron ore imports has risen from almost zero a few years ago to more than 30% now.
This number is still rising. After all, doing business is realistic, and whoever is convenient and safe can be used.
The former Ethiopian minister said quite truthfully that the de-dollarization is not a confrontation, but that countries want to protect their financial autonomy.
China does not force anyone to use the yuan, but only offers a more reliable option.This choice has stamped the pain of the global market, and naturally someone is willing to accept the offer.
The foundation of the dollar hegemony is loosing.It relies on the accumulation of the past, while the yuan relies on the current demand and the security of the future.
If the United States still holds the old mind, forcing allies to go with themselves, eventually even allies can not stay. after all, in the face of interests, no one will go with money and security.
When China buys ore with RMB, it buys not only resources, but also the right to speak in global trade and the initiative in financial security. This move is steady and far.