Deutsche Bank Yuan Clearing: A New Era
- Deutsche Bank is the first foreign yuan clearing bank in Europe.
- This move may impact the US dollar’s reserve currency status.
- Global influence is shifting towards nations with strong energy production.
The Buzz Score
The Internet’s Verdict: 70% Hyped, 30% Skeptical
Expert Insights
Deutsche Bank’s new role as a yuan clearing bank has significant implications.
The US wields incredible negotiating power and hegemony because the dollar is the world’s reserve currency. Like the British pound and the Dutch guilder before it, if that loses reserve currency status it will be harder to borrow on favorable terms, which would affect the entire US economy.
This shift may be driven by China’s growing energy reserves.
I wonder if it has anything to do with the currency apparently being backed by an immense reserve of oil, then coal, and then a massive amount of renewable solar, hydro, wind kWh’s and infrastructure to deliver it to homes and shops.
The Thucydides Trap may play out in currency and trade rather than military conflict.
It will be interesting to see how much of Thucydides Trap plays out in currency and trade as opposed to military conflict.
Focus Keyword: Yuan Clearing
