Banks are finally allowed to maintain accounts in Chinese currency RMB with their correspondents or overseas branches for cross-border transactions executed in Bangladesh.
Meanwhile, China has introduced cross-border interbank payments system (CIPS) with the RMB as an alternative trading currency. CIPS payment system offers clearing and settlement services for participates in cross-border RMB payment and trade.
Influence of SDR on RMB InternationalizationIJAEMSJORNAL
In 2016, IMF officially announced that RMB was included in the currency basket of SDR, with the RMB accounting for 10.92% of the total currencies in SDR ranking the third place. The RMB's accession to the SDR has played a role in promoting the RMB's internationalization status, opening up the international market and making the RMB become an international currency. However, at the same time, it is also necessary to clearly realize that the RMB's accession to the SDR does not have the final word as expected by the international community, and will not really increase the international holdings of RMB, which is, on one hand, restricted by "Triffin Dilemma" and "Mundellian Trilemma", and on the other hand, is as a result of the issue volume of the SDR and the inherent fragility of the real economy, resulting in the actual challenge to the internationalization of RMB. China has a long way to go to promote the internationalization of RMB, and there is still more work to be done.
RMB Internationalization and Practical Use in Caribbean as presented by Dr. Xinxiang WEN, Secretary General, Monetary Policy Committee, People's Bank of China on July 10, 2017 at a conference titled, 'Chinese Renminbi in the Caribbean-Opportunities for Trade, Aid and Investment,' held at the Hilton Barbados Resort.
China’s currency, the renminbi (RMB), is already internationalised: it ranks fourth globally by value of payments, behind only the US dollar, the euro and the British pound. The size of China’s economy and its dominant position in international trade mean that its use in transactions is already commonplace. Yet it is still not comparable to the four major denominations (including the Japanese yen) as an investment currency—i.e. one that is freely usable and enjoys the full confidence of international investors and the companies that service them. Without their support, the RMB cannot reach full maturity.
Until recently it seemed inevitable that China would take the steps necessary to win their confidence and that the RMB would soon join this elite band of global investment currencies. Yet the events of the summer of 2015, during which China’s authorities sought unsuccessfully to prop up a collapsing stock market and also suddenly devalued the RMB’s exchange rate anchor (ostensibly to take market forces more into account), raised questions about the country’s commitment to liberalising its capital markets. Doubts were reinforced by successive data points that suggested its economy was slowing far more rapidly than expected.
Looking beyond recent short-term volatility, the research asks about perceived demand for international usage of the RMB, what reforms are most urgently required, and what steps global financial services companies must take to prepare for a world in which the RMB vies with the US dollar.
The EIU also conducted in-depth interviews with a range of market participants and experts for this report, globally and in China, including with senior officials from the People’s Bank of China (PBOC), China’s central bank.
Influence of SDR on RMB InternationalizationIJAEMSJORNAL
In 2016, IMF officially announced that RMB was included in the currency basket of SDR, with the RMB accounting for 10.92% of the total currencies in SDR ranking the third place. The RMB's accession to the SDR has played a role in promoting the RMB's internationalization status, opening up the international market and making the RMB become an international currency. However, at the same time, it is also necessary to clearly realize that the RMB's accession to the SDR does not have the final word as expected by the international community, and will not really increase the international holdings of RMB, which is, on one hand, restricted by "Triffin Dilemma" and "Mundellian Trilemma", and on the other hand, is as a result of the issue volume of the SDR and the inherent fragility of the real economy, resulting in the actual challenge to the internationalization of RMB. China has a long way to go to promote the internationalization of RMB, and there is still more work to be done.
RMB Internationalization and Practical Use in Caribbean as presented by Dr. Xinxiang WEN, Secretary General, Monetary Policy Committee, People's Bank of China on July 10, 2017 at a conference titled, 'Chinese Renminbi in the Caribbean-Opportunities for Trade, Aid and Investment,' held at the Hilton Barbados Resort.
China’s currency, the renminbi (RMB), is already internationalised: it ranks fourth globally by value of payments, behind only the US dollar, the euro and the British pound. The size of China’s economy and its dominant position in international trade mean that its use in transactions is already commonplace. Yet it is still not comparable to the four major denominations (including the Japanese yen) as an investment currency—i.e. one that is freely usable and enjoys the full confidence of international investors and the companies that service them. Without their support, the RMB cannot reach full maturity.
Until recently it seemed inevitable that China would take the steps necessary to win their confidence and that the RMB would soon join this elite band of global investment currencies. Yet the events of the summer of 2015, during which China’s authorities sought unsuccessfully to prop up a collapsing stock market and also suddenly devalued the RMB’s exchange rate anchor (ostensibly to take market forces more into account), raised questions about the country’s commitment to liberalising its capital markets. Doubts were reinforced by successive data points that suggested its economy was slowing far more rapidly than expected.
Looking beyond recent short-term volatility, the research asks about perceived demand for international usage of the RMB, what reforms are most urgently required, and what steps global financial services companies must take to prepare for a world in which the RMB vies with the US dollar.
The EIU also conducted in-depth interviews with a range of market participants and experts for this report, globally and in China, including with senior officials from the People’s Bank of China (PBOC), China’s central bank.
The New Development Bank(NDB) operated by the five member-countries of Brazil, Russia, India, China and South Africa (BRICS) is all set to take off with an intention to develop economic relations amongst developing countries. It is considered to be an important institution since it is the first to be created by emerging countries with the hope to finance many important projects.
Cover Story China Running out of Breath
Outlook Crude Oil
Stats India Trade Deficit FY-2014
Emerging Country Russia
In Focus Land Acquisition Bill- A Snapshot
Global Liquidity and Monetary Policy TransmissionMacropru Reader
Global Liquidity and Monetary Policy Transmission
Hyun Song Shin - Bank for International Settlements (BIS)
Liquidity and Market Efficiency – Alive and Well? http://www.suerf.org/helsinki2015
6th joint conference organised by SUERF and Bank of Finland
Helsinki, 3 July 2015
Tax justice from 100 years old income tax law.pdfM S Siddiqui
Roughly 94 per cent of income-tax revenue comes from tax deducted at source. The Tax deduct as source (TDS) has been imposed at border during release of imported goods and services, supply of goods and services to government and corporates entities. This deduction is on gross sales value but not on net profit. The advances taxes are non-refundable and considered as tax on income. In many cases the tax burden are more than 100 percent of the net income of the business enterprises.
The New Development Bank(NDB) operated by the five member-countries of Brazil, Russia, India, China and South Africa (BRICS) is all set to take off with an intention to develop economic relations amongst developing countries. It is considered to be an important institution since it is the first to be created by emerging countries with the hope to finance many important projects.
Cover Story China Running out of Breath
Outlook Crude Oil
Stats India Trade Deficit FY-2014
Emerging Country Russia
In Focus Land Acquisition Bill- A Snapshot
Global Liquidity and Monetary Policy TransmissionMacropru Reader
Global Liquidity and Monetary Policy Transmission
Hyun Song Shin - Bank for International Settlements (BIS)
Liquidity and Market Efficiency – Alive and Well? http://www.suerf.org/helsinki2015
6th joint conference organised by SUERF and Bank of Finland
Helsinki, 3 July 2015
Tax justice from 100 years old income tax law.pdfM S Siddiqui
Roughly 94 per cent of income-tax revenue comes from tax deducted at source. The Tax deduct as source (TDS) has been imposed at border during release of imported goods and services, supply of goods and services to government and corporates entities. This deduction is on gross sales value but not on net profit. The advances taxes are non-refundable and considered as tax on income. In many cases the tax burden are more than 100 percent of the net income of the business enterprises.
Over the last decade the Chinese government has consistently strived to overcome China’s dependence on foreign supplies in the sector, and as a result China’s market share in semiconductors has increased from 5 percent in 2010 to 13 percent in 2020, more than doubling in ten years. China is moving along with the planned schedule to achieve supremacy in manufacturing semi-conductors.
Evaluation of Bangladesh’s Data Protection Bill.pdfM S Siddiqui
The draft Data Security Law did not make difference between data privacy and data security and a big concern was how to maintain the privacy of such data. The problem is that the government has expressed a controlling attitude to make the law a control mechanism rather than data security and data privacy.
Rights of the nominee vis-à-vis legal heirs.docxM S Siddiqui
Currently, the banks may follow the rule of Bangladesh Bank and the principle of the judgment of the High Court Division that the nominee is entitled to the money of the deceased person and pay to the nominee at the first instance to complete their responsibility. Subsequently, the nominee will be treated as a custodian in case of a succession certificate given by the court and distribute the amount accordingly.
Bangladesh bank’s rules of export documents require an amendmentM S Siddiqui
The Factoring services provide security of payment and financing through transfer of shipping documents along with ownership and rights over the payments. The circular no. 32 (dated October 03, 2021) restricting transfer of document will hamper smooth service of Factoring and export financing by trade finance companies. The BB should revisit the circular addressing the embargo over transfer of full set of documents.
Access to finance for the informal sectorM S Siddiqui
Bangladesh may formulate policies to use these sources to in credit reporting systems. There may be even legal framework like some other some economies to allow the sharing of information from non-traditional sources and authorised CRSPs to prepare CR for MSMEs.
Ad free channel ends unfair privileges to overseas manufacturersM S Siddiqui
The Clean Feed Strategy would give a level playing field to Bangladeshi manufacturers and foreign manufactures. Although late the government has taken a bold decision.
Pandemic recession and employment crisisM S Siddiqui
The policy of Bangladesh Bank and attitude of commercial banks have many challenges to overcome regarding these programmes. They require a change in mind-set and political will to recognize the crisis and probable solution. There should a recognition that informal workers and their livelihood activities represent the broad base of the economy producing essential goods and services not only for low-income customers but also for the general public and for the formal economy.
How to upgrade bangladesh’s banking almanacM S Siddiqui
The confidence of users is a big challenge for an almanac. The authentication of information is a basic criterion of a good almanac. The authority may take initiative to upload the almanac in their web-site and make easily accessible for the end users specially the FI in other countries.
Bangladesh needs rules on odourised lpgM S Siddiqui
It is impossible to detect the leak because of the lack of odour. This has led different countries to enact new regulations that require gas suppliers to odourise LPG.
The experience of the other countries doesn’t support the fear of NBR officials. This conception of officials is a challenge of introduction of PCA in Bangladesh.
With the ratification of the TFA in 2016, Bangladesh has obligation to introduce PCA in the customs rule. The relevant SRO should be issues as early as possible.
Abrupt indian ban on onion seeds not legalM S Siddiqui
Bangladesh became self-reliant in Cattle production after restriction on cattle export / smuggling during last few years. Let's hope that the statistics of Bangladesh Agricultural Department are correct and Bangladesh will hopefully continue to be self-reliant of onion despite Indian ban on export of onion and onion seed.
Miniket may be branded for marketing by any company but cannot claim this as local variety of rich. It cannot be registered under patent act. The fate of Miniket is depends upon teste and demand of the consumers.
Psi of govt purchase contrary to import policyM S Siddiqui
The inspection by government official is against the Import Policy Order as well as it is expensive for the nation and not serving the real purpose. The inspectors are not liable for any incidence of wrong delivery.
Disappearance of border pillars and death from lightning strikeM S Siddiqui
In south Asia the casualties have been increases in recent years. But apart from climate change, the recent increase of death of lightning has linkage with the silent disappearance of Border pillars of Mouja installed by British rulers in South Asia.
The standard global practice of other countries, the credit information reports neither express any opinion about the borrower creditworthiness nor assign any rating to the borrowers.
Hashem foods fire determining the liability of regulatorsM S Siddiqui
Despite all the irregularities, how industries get fitness certificate from DIFE on yearly basis is a question. Hashem Food started their business in 1982 and DIFE has been certifying it on yearly basis since then.
Regional co-operation under SAARC may be an additional blessing to solve the problem. Bangladesh apparently failed to get mutual co-operation from neighboring countries. Bangladesh may shift the policy on prevention, education and training of all stakeholders to eradicate drugs from our society.
Aila re naya daman folksong belongs to whomM S Siddiqui
Copyright protection is one such important and strong protection guaranteed under intellectual property laws. The expressions of folklore are undoubtedly a product of human genus and intellect and hence deserve adequate protection under the fast-growing system of intellectual property rights laws. The folk song Aila re naya daman is the property of the community, and not of any individual.
What website can I sell pi coins securely.DOT TECH
Currently there are no website or exchange that allow buying or selling of pi coins..
But you can still easily sell pi coins, by reselling it to exchanges/crypto whales interested in holding thousands of pi coins before the mainnet launch.
Who is a pi merchant?
A pi merchant is someone who buys pi coins from miners and resell to these crypto whales and holders of pi..
This is because pi network is not doing any pre-sale. The only way exchanges can get pi is by buying from miners and pi merchants stands in between the miners and the exchanges.
How can I sell my pi coins?
Selling pi coins is really easy, but first you need to migrate to mainnet wallet before you can do that. I will leave the telegram contact of my personal pi merchant to trade with.
Tele-gram.
@Pi_vendor_247
Falcon stands out as a top-tier P2P Invoice Discounting platform in India, bridging esteemed blue-chip companies and eager investors. Our goal is to transform the investment landscape in India by establishing a comprehensive destination for borrowers and investors with diverse profiles and needs, all while minimizing risk. What sets Falcon apart is the elimination of intermediaries such as commercial banks and depository institutions, allowing investors to enjoy higher yields.
BYD SWOT Analysis and In-Depth Insights 2024.pptxmikemetalprod
Indepth analysis of the BYD 2024
BYD (Build Your Dreams) is a Chinese automaker and battery manufacturer that has snowballed over the past two decades to become a significant player in electric vehicles and global clean energy technology.
This SWOT analysis examines BYD's strengths, weaknesses, opportunities, and threats as it competes in the fast-changing automotive and energy storage industries.
Founded in 1995 and headquartered in Shenzhen, BYD started as a battery company before expanding into automobiles in the early 2000s.
Initially manufacturing gasoline-powered vehicles, BYD focused on plug-in hybrid and fully electric vehicles, leveraging its expertise in battery technology.
Today, BYD is the world’s largest electric vehicle manufacturer, delivering over 1.2 million electric cars globally. The company also produces electric buses, trucks, forklifts, and rail transit.
On the energy side, BYD is a major supplier of rechargeable batteries for cell phones, laptops, electric vehicles, and energy storage systems.
If you are looking for a pi coin investor. Then look no further because I have the right one he is a pi vendor (he buy and resell to whales in China). I met him on a crypto conference and ever since I and my friends have sold more than 10k pi coins to him And he bought all and still want more. I will drop his telegram handle below just send him a message.
@Pi_vendor_247
Poonawalla Fincorp and IndusInd Bank Introduce New Co-Branded Credit Cardnickysharmasucks
The unveiling of the IndusInd Bank Poonawalla Fincorp eLITE RuPay Platinum Credit Card marks a notable milestone in the Indian financial landscape, showcasing a successful partnership between two leading institutions, Poonawalla Fincorp and IndusInd Bank. This co-branded credit card not only offers users a plethora of benefits but also reflects a commitment to innovation and adaptation. With a focus on providing value-driven and customer-centric solutions, this launch represents more than just a new product—it signifies a step towards redefining the banking experience for millions. Promising convenience, rewards, and a touch of luxury in everyday financial transactions, this collaboration aims to cater to the evolving needs of customers and set new standards in the industry.
USDA Loans in California: A Comprehensive Overview.pptxmarketing367770
USDA Loans in California: A Comprehensive Overview
If you're dreaming of owning a home in California's rural or suburban areas, a USDA loan might be the perfect solution. The U.S. Department of Agriculture (USDA) offers these loans to help low-to-moderate-income individuals and families achieve homeownership.
Key Features of USDA Loans:
Zero Down Payment: USDA loans require no down payment, making homeownership more accessible.
Competitive Interest Rates: These loans often come with lower interest rates compared to conventional loans.
Flexible Credit Requirements: USDA loans have more lenient credit score requirements, helping those with less-than-perfect credit.
Guaranteed Loan Program: The USDA guarantees a portion of the loan, reducing risk for lenders and expanding borrowing options.
Eligibility Criteria:
Location: The property must be located in a USDA-designated rural or suburban area. Many areas in California qualify.
Income Limits: Applicants must meet income guidelines, which vary by region and household size.
Primary Residence: The home must be used as the borrower's primary residence.
Application Process:
Find a USDA-Approved Lender: Not all lenders offer USDA loans, so it's essential to choose one approved by the USDA.
Pre-Qualification: Determine your eligibility and the amount you can borrow.
Property Search: Look for properties in eligible rural or suburban areas.
Loan Application: Submit your application, including financial and personal information.
Processing and Approval: The lender and USDA will review your application. If approved, you can proceed to closing.
USDA loans are an excellent option for those looking to buy a home in California's rural and suburban areas. With no down payment and flexible requirements, these loans make homeownership more attainable for many families. Explore your eligibility today and take the first step toward owning your dream home.
how to sell pi coins effectively (from 50 - 100k pi)DOT TECH
Anywhere in the world, including Africa, America, and Europe, you can sell Pi Network Coins online and receive cash through online payment options.
Pi has not yet been launched on any exchange because we are currently using the confined Mainnet. The planned launch date for Pi is June 28, 2026.
Reselling to investors who want to hold until the mainnet launch in 2026 is currently the sole way to sell.
Consequently, right now. All you need to do is select the right pi network provider.
Who is a pi merchant?
An individual who buys coins from miners on the pi network and resells them to investors hoping to hang onto them until the mainnet is launched is known as a pi merchant.
debuts.
I'll provide you the Telegram username
@Pi_vendor_247
how to sell pi coins in all Africa Countries.DOT TECH
Yes. You can sell your pi network for other cryptocurrencies like Bitcoin, usdt , Ethereum and other currencies And this is done easily with the help from a pi merchant.
What is a pi merchant ?
Since pi is not launched yet in any exchange. The only way you can sell right now is through merchants.
A verified Pi merchant is someone who buys pi network coins from miners and resell them to investors looking forward to hold massive quantities of pi coins before mainnet launch in 2026.
I will leave the telegram contact of my personal pi merchant to trade with.
@Pi_vendor_247
The Evolution of Non-Banking Financial Companies (NBFCs) in India: Challenges...beulahfernandes8
Role in Financial System
NBFCs are critical in bridging the financial inclusion gap.
They provide specialized financial services that cater to segments often neglected by traditional banks.
Economic Impact
NBFCs contribute significantly to India's GDP.
They support sectors like micro, small, and medium enterprises (MSMEs), housing finance, and personal loans.
US Economic Outlook - Being Decided - M Capital Group August 2021.pdfpchutichetpong
The U.S. economy is continuing its impressive recovery from the COVID-19 pandemic and not slowing down despite re-occurring bumps. The U.S. savings rate reached its highest ever recorded level at 34% in April 2020 and Americans seem ready to spend. The sectors that had been hurt the most by the pandemic specifically reduced consumer spending, like retail, leisure, hospitality, and travel, are now experiencing massive growth in revenue and job openings.
Could this growth lead to a “Roaring Twenties”? As quickly as the U.S. economy contracted, experiencing a 9.1% drop in economic output relative to the business cycle in Q2 2020, the largest in recorded history, it has rebounded beyond expectations. This surprising growth seems to be fueled by the U.S. government’s aggressive fiscal and monetary policies, and an increase in consumer spending as mobility restrictions are lifted. Unemployment rates between June 2020 and June 2021 decreased by 5.2%, while the demand for labor is increasing, coupled with increasing wages to incentivize Americans to rejoin the labor force. Schools and businesses are expected to fully reopen soon. In parallel, vaccination rates across the country and the world continue to rise, with full vaccination rates of 50% and 14.8% respectively.
However, it is not completely smooth sailing from here. According to M Capital Group, the main risks that threaten the continued growth of the U.S. economy are inflation, unsettled trade relations, and another wave of Covid-19 mutations that could shut down the world again. Have we learned from the past year of COVID-19 and adapted our economy accordingly?
“In order for the U.S. economy to continue growing, whether there is another wave or not, the U.S. needs to focus on diversifying supply chains, supporting business investment, and maintaining consumer spending,” says Grace Feeley, a research analyst at M Capital Group.
While the economic indicators are positive, the risks are coming closer to manifesting and threatening such growth. The new variants spreading throughout the world, Delta, Lambda, and Gamma, are vaccine-resistant and muddy the predictions made about the economy and health of the country. These variants bring back the feeling of uncertainty that has wreaked havoc not only on the stock market but the mindset of people around the world. MCG provides unique insight on how to mitigate these risks to possibly ensure a bright economic future.
Even tho Pi network is not listed on any exchange yet.
Buying/Selling or investing in pi network coins is highly possible through the help of vendors. You can buy from vendors[ buy directly from the pi network miners and resell it]. I will leave the telegram contact of my personal vendor.
@Pi_vendor_247
when will pi network coin be available on crypto exchange.DOT TECH
There is no set date for when Pi coins will enter the market.
However, the developers are working hard to get them released as soon as possible.
Once they are available, users will be able to exchange other cryptocurrencies for Pi coins on designated exchanges.
But for now the only way to sell your pi coins is through verified pi vendor.
Here is the telegram contact of my personal pi vendor
@Pi_vendor_247
Bangladesh’s cross border transaction in Chinese RMB.pdf
1. Bangladesh’s cross border transaction in Chinese RMB
M S Siddiqui
https://businesspostbd.com/editorial/2022-10-05/bangladeshs-cross-border-
transaction-in-chinese-rmb
05 Oct 2022 00:03:41 | Update: 05 Oct 2022 00:03:41
Banks are finally allowed to maintain accounts in Chinese currency RMB with their
correspondents or overseas branches for cross-border transactions executed in Bangladesh. The
central bank’s foreign exchange policy department issued a circular on September 5, 2022. With
this circular, the scope of paragraph 1, chapter 4; paragraph 24, chapter 7; and paragraph 5,
chapter 8 of the Guidelines for Foreign Exchange Transactions-2018, Vol-1 shall stand extended.
Before the RMB inclusion, the authorised dealers of banks were allowed to open foreign currency
clearing account with the central bank in currencies of five countries — US dollar, pound sterling, euro,
Japanese yen and Canadian dollar. BB has also facilitated Bangladesh's foreign trade covering both export
and import in RMB. Earlier on August 14, 2018, the central bank allowed the AD banks to open foreign
currency clearing account with the BB in the RMB on the same grounds. Chinese currency is the best
second international currency, as Bangladesh imports most from China, which emerges as the country's
largest trade partner.
Bangladesh’s bilateral trade with China, or international trade, will no longer be dependent on the US$
thanks to the central bank’s latest move. Bangladesh’s businesses have recently urged the central bank to
take measures so that dependency on the US$ can be reduced when settling transactions for foreign trade.
Import payments to China stood at $18.51 billion in the last fiscal year, an increase from $12.93 billion in
FY21. Besides, export earnings from China reached only $683.43 million in FY22, compared to $680.65
million
in FY21.
In recent years, the cross-border use of the RMB has sustained rapid growth and has maintained robust
growth this year even despite the impact of the Covid-19 that has severely hit global trade, finance and
economy. Overtaking the US, China became the world's largest trading nation in 2013, and the largest
foreign direct investment (FDI) destination in 2014 and is expected to become the largest consumer
market in 2030.
Meanwhile, China has introduced cross-border interbank payments system (CIPS) with the RMB as an
alternative trading currency. CIPS payment system offers clearing and settlement services for participates
in cross-border RMB payment and trade.
The Chinese currency was not very popular in international trade before 2021, but it gradually gained
popularity when the European Union and US imposed sanctions on Russia over the Ukraine invasion. A
Bangladesh Bank official said the government had declared the Chinese yuan or renminbi as a convertible
currency in March 2014 by issuing a gadget notification. But many banks were still shying away from
settling transactions of foreign trade through the currency, said the official.
2. The International Monetary Fund (IMF) had already included the Chinese currency in its currency basket
- SDR (special drawing rights). RMB is increasingly used in cross-border payment and financing
worldwide. More central banks hold RMB-denominated assets as reserves and the RMB as an invoicing
currency witnessed remarkable progress. Now, the size of the RMB reserves is the 5th largest in the
International Monetary Fund (IMF)'s Currency Composition of the Official Foreign Exchange Reserves
(COFER). Besides, the market share of the RMB in the foreign exchange trading is 4.3 per cent, ranking
5th as a payment currency globally.
In 2019, the cross-border RMB settlement between China and the neighboring countries registered RMB
3.6 trillion yuan, among which the trade in goods amounted to RMB 994.5 billion yuan, and the direct
investment amounted to RMB 351.2 billion yuan. Since 2008, China has signed the bilateral local
currency settlement agreements with nine neighboring countries and the countries along the B&R such as
Vietnam, Laos, Russia and Kazakhstan, and has signed the bilateral local currency swap agreements with
the central banks or monetary authorities of 23 neighboring countries and the countries along the B&R
such as Russia, Indonesia, the United Arab Emirates (the UAE), Egypt and Turkey. For international
market participants this is reflected in less foreign exchange volatility marking RMB-denominated
investments as the preferred asset class and currency in settling cross-border payments. Resumed business
activity will also bolster support in the RMB as business confidence is restored. Recently, India has
imported crude oil from Russian by paying with RMB to avoid any possible blocked of transaction by US
sanction.
Experts also suggested that it is high time for the Bangladeshi government to go for direct communication
with the China Development Bank (CDB) and avail the opportunity of using more RMB loans for mega
Bangladesh products. I will increase the inflow of RMB to Bangladesh.
Currently, a few banks have Nostro accounts with China but those are not used for payment as 99% of
foreign transactions are done in dollars. Bangladeshi banks are looking for Chinese payment channels to
settle transactions with Russian banks that were removed from the SWIFT system to remedy difficulties
faced by importers and exporters after Western sanctions following Russia's attack on Ukraine.
Now, the exporters and importers would be able to get rid of the costs that arise due to exchange of
currency from Chinese yuan to the US dollar and then to Bangladeshi currency taka while conducting
bilateral trade. Opening letters of credit in the Chinese currency against import might help contain the
growing pressure over the US dollar on the back of sharp increase in import payments, they said.
The growing pressure over the dollar and the subsequent increase in the currency’s exchange rate were
also amplifying risk of inflation. Apart from the benefits for business-to-business trade, the government to
government payments would also be benefited due to the new facility of opening foreign currency
clearing account in Chinese yuan, they added.
The monopolistic dominance of the US$ would have resulted in an unhealthy competition in world trade.
As the RMB's function as settlement currency has been consolidated, the function as denomination
currency has been brought into play, and the attractiveness of the RMB for financing gradually emerged,
in the future it is expected to see the introduction of more robust measures to shore up and strengthen the
currency. Long-term outlooks hold that the Chinese RMB will be one of the three currencies used for
worldwide currency exchange in addition to EUR and US Dollar.
The writer is Non-Government Adviser, Bangladesh Competition Commission. He can be contacted
at mssiddiqui2035@gmail.com