Ares
16th January 2012, 08:57 AM
http://previous.presstv.ir/photo/20120116/rasouli_amir20120116095643620.jpg
Britain has suggested it is ready to sacrifice the dollar and the euro in favor of the Chinese Renminbi (RMB) as the future leading foreign currency in London by taking the first step toward that end.
British Chancellor George Osborne who is on the first day of his Asian visit earlier wrote for the Daily Telegraph that the London would be a hub for promoting the RMB in the future amid predictions that China will pose the most serious challenge to the US as an economic power in the next decade.
Osborne said the sacrifice makes sense as Asia is growing at a “remarkable pace” while the EU is struggling to cope.
His direct mention of the EU was certainly linked to the reduced credit rating of several European 'powers', including France, by Standard & Poor's.
Yet, the implication remained that financial interests 'talk' and that London is prepared to replace every economic giant, including the US, when it is financially expedient.
After all it goes without saying that the US is coping with major economic problems so much so that the leading Republican presidential hopeful Mitt Romney has been building his campaign around the claim that he knows how to repair the ailing American economy.
Osborne is sure to have noticed that the US unemployment was at 8.5 percent in December, though he probably preferred to let sleeping dogs lie by avoiding comments on the US economy for now.
He openly announced that he will offer the Chinese side to turn London into the main global center for promoting RMB as a global currency that would allow it to rival the dollar and the euro as options for foreign currency national reserves.
“While in Hong Kong, I will be announcing the launch of a joint private sector forum, with the Hong Kong Monetary Authority, to promote closer cooperation between the London and Hong Kong financial centres on the development of a global offshore market for the Renminbi (RMB),” Osborne wrote.
“I want to position London as a hub for the RMB market, with the huge opportunities this brings for Britain. Total trade in China settled in RMB increased from just 0.7 per cent in the first half of 2010 to 9 per cent in the first half of 2011. There is scope for substantial expansion of the RMB market in the coming years,” he added.
He also talked of “common economic interests” with China that suggests, in disguise, damage to the economic interests of the US and, by extension, the EU.
According to October 2011 HM Revenue and Customs Overseas Trade Statistics, the US was the biggest trade partner of Britain, while European giants, such as Germany and France, ranked among the top five.
Based on the figures, China only ranked the ninth biggest trade partner of Britain in the first three quarters of 2011 with Japan, which is Osborne's next target in Asia, ranking 17th.
Now those figures seem set to change with Osborne announcing “our common economic interests present an opportunity for Britain and Asia to work together.”
“I know that in Britain, the jobs of the future depend on our ability to make the most of the opportunities that Asian markets present,” he said.
“A strong relationship with Asia is a central part of the Government's economic strategy - moving from an economy built on debt, to a new, balanced economy where we save, invest and export,” he added.
http://www.presstv.ir/detail/221315.html?utm_source=dlvr.it&utm_medium=twitter
Britain has suggested it is ready to sacrifice the dollar and the euro in favor of the Chinese Renminbi (RMB) as the future leading foreign currency in London by taking the first step toward that end.
British Chancellor George Osborne who is on the first day of his Asian visit earlier wrote for the Daily Telegraph that the London would be a hub for promoting the RMB in the future amid predictions that China will pose the most serious challenge to the US as an economic power in the next decade.
Osborne said the sacrifice makes sense as Asia is growing at a “remarkable pace” while the EU is struggling to cope.
His direct mention of the EU was certainly linked to the reduced credit rating of several European 'powers', including France, by Standard & Poor's.
Yet, the implication remained that financial interests 'talk' and that London is prepared to replace every economic giant, including the US, when it is financially expedient.
After all it goes without saying that the US is coping with major economic problems so much so that the leading Republican presidential hopeful Mitt Romney has been building his campaign around the claim that he knows how to repair the ailing American economy.
Osborne is sure to have noticed that the US unemployment was at 8.5 percent in December, though he probably preferred to let sleeping dogs lie by avoiding comments on the US economy for now.
He openly announced that he will offer the Chinese side to turn London into the main global center for promoting RMB as a global currency that would allow it to rival the dollar and the euro as options for foreign currency national reserves.
“While in Hong Kong, I will be announcing the launch of a joint private sector forum, with the Hong Kong Monetary Authority, to promote closer cooperation between the London and Hong Kong financial centres on the development of a global offshore market for the Renminbi (RMB),” Osborne wrote.
“I want to position London as a hub for the RMB market, with the huge opportunities this brings for Britain. Total trade in China settled in RMB increased from just 0.7 per cent in the first half of 2010 to 9 per cent in the first half of 2011. There is scope for substantial expansion of the RMB market in the coming years,” he added.
He also talked of “common economic interests” with China that suggests, in disguise, damage to the economic interests of the US and, by extension, the EU.
According to October 2011 HM Revenue and Customs Overseas Trade Statistics, the US was the biggest trade partner of Britain, while European giants, such as Germany and France, ranked among the top five.
Based on the figures, China only ranked the ninth biggest trade partner of Britain in the first three quarters of 2011 with Japan, which is Osborne's next target in Asia, ranking 17th.
Now those figures seem set to change with Osborne announcing “our common economic interests present an opportunity for Britain and Asia to work together.”
“I know that in Britain, the jobs of the future depend on our ability to make the most of the opportunities that Asian markets present,” he said.
“A strong relationship with Asia is a central part of the Government's economic strategy - moving from an economy built on debt, to a new, balanced economy where we save, invest and export,” he added.
http://www.presstv.ir/detail/221315.html?utm_source=dlvr.it&utm_medium=twitter