☨St Louis IX opposed paganism, hæresy \x26 debauchery
China Observer
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Comments by "☨St Louis IX opposed paganism, hæresy \x26 debauchery" (@stlouisix3) on "Globalization of RMB Has Become A Joke! Offshore RMB Is Out of Control as Economic Recession" video.
📉 The Renminbi exchange rate has been consistently declining since May, reaching its lowest level since 2014.
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The Renminbi broke through the threshold of 1 US Dollar to 7 Renminbi on May 17th.
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The onshore Renminbi has depreciated by about 4 percent against the US dollar since the start of the year.
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The Renminbi is essentially at its lowest level since 2014 according to the Renminbi's real effective exchange rate.
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Chinese state owned banks sold US Dollars to prop up the Renminbi exchange rate.
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The idea of replacing the US Dollar with the Renminbi is unrealistic due to the dominance of the US Dollar in global currency transactions.
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The Global Depreciation of Renminbi: Offshore RMB Out of Control as Economic Recession Takes Hold
📉 The US dollar remains the dominant currency for international trade, while the Chinese Yuan's internationalization efforts have not been successful.
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By the end of Q1 2023, the US dollar accounted for 59% of global foreign exchange reserves, followed by the Euro, the Japanese Yen, the British Pound, and the Chinese Yuan.
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China's promotion of Yuan settlements with countries like Russia, Saudi Arabia, and Brazil did not result in significant usage of the Yuan in international trade.
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Russia faced economic sanctions and had limited access to dollars and euros, leading to the need to sell Yuan and purchase with other currencies.
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The US dollar remains the most widely used currency for international payments, followed by the Euro, the British Pound, the Japanese Yen, and the Chinese Yuan ranking fifth.
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The payment ratio of the Chinese Yuan dropped by 20% compared to two years prior, indicating a lack of significant adoption in international payments.
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💰 The depreciation of the Yuan exchange rate is not a deliberate act by the Chinese Communist Party, but is influenced by the existence of the offshore Renminbi exchange rate market.
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The international market's lack of capacity to accept Yuan causes the Yuan exchange rate to fall.
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There is no international Yuan bond, which means holding Yuan does not earn interest.
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Mainland China needs to sell something to maintain the value of Yuan, or else Yuan is sold for dollars.
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China strictly limits domestic citizens' foreign currency exchange capacity.
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The existence of the offshore Renminbi exchange rate market leads to the sharp drop in the Renminbi exchange rate.
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📉 The decline in the offshore Renminbi exchange rate reflects China's economic issues.
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Hong Kong and London are the two largest offshore Renminbi trading centers.
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Factors such as Russia's significant Renminbi sell-off, Federal Reserve rate hikes, and China's economic downturn led to a decline in the offshore and onshore Renminbi exchange rates.
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The uncontrolled offshore Renminbi has become a 'barometer' influencing the trend of the Renminbi exchange rate and reflecting China's economic problems.
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China's economic indicators show a comprehensive decline, including lower consumer confidence, a steep drop in real estate investment, and a significant decrease in exports to the United States.
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China's foreign exchange income and reserves are insufficient, making it difficult to maintain the stability of the offshore Renminbi.
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📉 China's foreign exchange reserves are limited due to high foreign debt and a recessionary trend.
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China's foreign exchange reserves are 3.19 trillion US Dollars, but the included foreign debt is equivalent to 2.45 trillion US Dollars.
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Foreign debt accounts for 76.8 percent of China's foreign exchange reserves, limiting the government's available reserves during economic downturns.
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The Federal Reserve's rate hikes and China's rate cuts have led to speculation of Renminbi devaluation.
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Federal Reserve Chairman Powell's speech strengthened the US dollar and exerted depreciation pressure on the Renminbi.
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China is experiencing a recessionary trend characterized by widespread industry depression and high unemployment rates.
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