China and Brazil, goodbye to the dollar
China and Brazil to inflict a blow to the dollar's role as a universal currency. The two central banks in Brasilia and Beijing announced it had reached an agreement to eliminate the dollar as the currency for payment of the bilateral trade between the two countries, an exchange that this year will reach $ 40 billion.
President Henrique Meirelles Brazilian monetary authority has made the announcement after a meeting with his Chinese counterpart, Zhou Xiaochuan, the margins of the meeting between the governors at the Bank for International Settlements, based in Bern. The import-export between the two emerging giants will therefore paid in yuan instead of dollars as it was real and ancient custom. The same Meirelles added that a similar agreement is being reached with India, to use directly the real and the rupee in the exchange on both sides, eliminating the payments in dollars. Russia is also keen to quickly sign the same kind of understanding, which was discussed in the club of BRIC (Brazil, Russia, India, China).
course, this still does not detract from the role of the dollar as reserve currency for central banks. The Chinese leadership, in fact, stressed recently that the investment policy of their currency reserves in dollars will not undergo significant changes (in fact they are worried that a signal of "alienation" on their part to bring down the dollar, devaluing their investments and also reduce the competitiveness of "Made in China). However, the abandonment of the dollar in trade between the BRIC is a step toward a reappraisal of its role as a currency "universal". The BRIC economies are the strongest rate of growth. This year China has overtaken the U.S. as biggest trading partner of Brazil. Brazilian exports to the People's Republic of (especially soya and iron ore) increased by 64% in the first quarter of 2009 compared to the same period in 2008.
Meanwhile, a new sign of recovery of the Chinese economy is the index of manufacturing activity, which June rose for the fourth consecutive month. The index had marked a low in November, when the global recession had a tremendous impact on Chinese exports.
Optimism on the major Asian economies (China and India) NTERNATIONAL reflected in the behavior of investors: the private equity group Carlyle has just announced it is easily picked up a billion dollars in capital for his new fund specializing in small and medium-sized enterprises in Asia.
And there are those who begin to fear that China is forming around a new bubble. The initial placement of securities of a producer of herbal shampoo, Bawang, in ten minutes of opening of subscriptions domende sought for $ 9 billion, compared with an offer of just 215 million shares. The Bawang has a price-earnings ratio standing at 20, very high.
Another Chinese company, Global Water Duoyuan specialized in water treatment, has had an increase of 34% in its first day of trading on the New York Stock Exchange. In Hong Konh the first IPO of the China Metal Recycling was greeted by an immediate increase of 22%. According to Ernst & Young, there are 108 new share placements of Chinese students are coming to the stock exchanges in Shanghai and Hong Kong.
(July 1, 2009)
source http://www.repubblica.it/
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