Deutsche Bank becomes first foreign yuan clearing bank in Europe

JimmyBuckets

It will be interesting to see how much of Thucydides Trap plays out in currency and trade as opposed to military conflict. I am hopeful that economic and financial warfare absorbs the brunt of the power struggle.

DC-3

What does that mean?

sigma5

"but at what cost" ?

FrustratedMonky

The end of the Petro Dollar? Soviet-China-Iran - Petro Yuan? /edit for the pedantic. Russian Federation.

avisser

Is it a yuan or is it a Renminbi?

zer00eyz

Deutsche banks slogan should be "If you need to do something shady call Deutsche". At some point china will loose the ability to keep its global currency (Yuan, should be inflating) decoupled from the domestic one (Renminbi is deflating). They have been keeping long running issues in Banking, and Relestate at bay but a global recession (and were on the cusp it seems) is going to be brutal to china. I suspect that if (when?) that hits this will turn into another Deutsche scandal.

pizzathyme

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 is a big step in that perhaps starting to happen over the next few decades.

Alien1Being

Trump is making China great again. Pity about the USA....

qprofyeh

I wonder if it has anything to do with the currency apparently being backed by an immense reserve of oil (proven to the world by this year's geopolitical events), then coal, and then a massive amount of renewable solar, hydro, wind kWh's and infrastructure to deliver it to homes and shops. More and more it feels like a nation's kWh throughput is the new metric to track its global influence in manufacturing, industry, and financial services. In other words electric power now equates to global power.

roschdal

I don't like, trust or trade with China.

kklisura

If there's one thing you can do now that will set you up for the next 20–30 years: it’s learning Mandarin.

aljgz

Change happens gradually, and then suddenly.

athrowaway3z

Would this also mean we can get a EuroDollar systems for the Yuan? As in, Deutsche Bank can create loans denominated in Yuan without Chinese central bank control?

BaardFigur

Not a good thing. China is an authoritarian regime, which we need to reduce dependency on, not increase it.

lenerdenator

Ah, yes, the best way to react to increased authoritarianism in the US is to checks notes begin doing more business with a country that is the final word in authoritarianism.

mrtksn

I have this pet theory that is fueled with ignorance but kind of make sense to me: The correct value of the USD would be adjusted to match the tech company valuations sans AI(Apple can be a good guide IMHO) when they serve 350M people instead of 8B people as AI makes software obsolete and the geopolitics and the US government behavior dismantles any network or lock in effects.

zefir

I wonder if this might be a reaction to the "blindsided" ECB, following a US decision to prop up the Japanese yen. This would be an interesting fracture. https://www.ft.com/content/d9922d0b-51a0-48be-811b-42e08f909...

t3hTao

Bank who did some dark stuff with Trump and Russia is working with China? I'm shocked!

hnussffjc9

This aged well

jagermo

Of course it's Deutsche Bank, I am sure nothing shady will come of that.