Look Out America –EEU TREATY STARTS JAN 1st & CHINA LAUNCHES FIRST STEPS TOWARD GLOBALIZATION OF YUAN

dDecember 31, 2014

#AceNewsServices – Editors Post: MOSCOW:Dec.31: Russia sees the long-term goal of cooperation between the Eurasian Economic Union (EEU) and the European Union (EU) in creating a free trade zone that is expected to serve as the basis of a common economic space from the Atlantic to the Pacific, Russia’s Deputy Foreign Minister Vasily Nebenzya told ./TASS/. in an interview.

' The Treaty on the establishment of the Eurasian Economic Union comes into effect on January 1. Infographics by TASS '

“This strategic initiative is designed to ensure harmonious development of all countries in the region, both affiliated and not affiliated with various integration associations,” he said.

At the same time Nebenzya acknowledged that the existing realities by no means allowed for implementing such plans, although “the idea of establishing contacts between the EU and the EEU has drawn an ever greater response from the European Union.”

“We welcome the latest statements by a number of European politicians to the effect they welcome the idea of a direct dialogue between the EU and the EEU,” he said.

At the moment work is in progress to promote ruble settlements for energy resources between Russia and other countries, but this requires prolonged negotiations and major efforts by the contracting parties, Russia’s Deputy Foreign Minister Vasily Nebenzya has told TASS.

“The issue of shifting export and import transactions to ruble settlements, and also to carry out bilateral transactions within the framework of bilateral trading and economic cooperation in the national currencies with those partners who seek constructive cooperation is regarded as an important long-term task,” Nebenzya said. “As you understand, though, during the period of the ruble’s high volatility this would be not only hard to achieve, but inexpedient as well.”

China is launching trading in forward contracts and swaps between the yuan and three more currencies, including the Russian ruble, from December 29, the China Foreign Exchange Trade System managed by the People’s Bank of China reported on Friday.

Starting from this date, China is also launching trading in contracts with the Malaysian ringgit and the New Zealand dollar.

With the launch of trading in the ruble, the ringgit and the New Zealand dollar, yuan swaps on the interbank foreign exchange market will be available for 11 currencies.

“This will provide companies with better hedging tools, and at the same time, make currency trading more efficient,” Bloomberg news agency quoted HSBC’s strategist in Hong Kong Ju Wang as saying.

“China won’t stop yuan globalization” despite volatility in emerging market currencies, the strategist said.

The Chinese yuan can overtake the dollar as the leading international reserve currency, a new poll of institutional investors indicates.

The authors of the survey, conducted by theEconomist Intelligence Unit and commissioned byState Street financial services, polled 200 senior executives at institutional investors with knowledge of their exposure to yuan assets. Half of the respondents were from the firms head-quartered in mainland China (including Hong Kong and Taiwan) and the other half were based elsewhere.

#ANS2014

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