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- Hacker News
- I'm curious what other banks have this ability? Is this the first foreign yuan clearing bank in Europe or in the World?by hk1337
- Singaporean banks have been able to do this for a year or two as well.
JP Morgan clears directly as well.
by kasey_junk - worth noting that one main reason why this didn't happen sooner is because China didn't want it to -- while the RMB as a reserve / trading currency strengthens its status and weakens the US', it also makes it harder for China to control the exchange rate, which in the past it considered to be a strategic imperative.
- 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...by zefir
- Doubtful. The clearing house thing must have been in discussions for years already.by Havoc
- 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.by mrtksn
- > US government behavior dismantles any network or lock in effects
You should look at where most of the compute of the world is physically located. You might have a shock.
by dist-epoch - related:
"It's hard to argue that the yuan isn't undervalued. As the International Monetary Fund noted in its country report published in February, China's external position "is assessed to be stronger than the level implied by medium-term fundamentals and desirable policies." The yuan has nonetheless fallen in real terms due to China's low inflation.
Indeed, the renminbi has depreciated in real terms four years in a row, registering a cumulative 14% decline since 2021, according to IMF economists. They estimate China's real effective exchange rate could potentially be up to 20% undervalued.
China watchers Brad Setser and Mark Sobel, both former U.S. Treasury officials, go further and say the yuan is probably undervalued by as much as 30%. Setser has long argued that China's official balance of payments data understates the country's real surplus and that customs data is the more accurate barometer. By that measure, the trade surplus would be a percentage point of GDP wider."
https://www.reuters.com/markets/europe/chinas-yuan-is-underv...
by Markoff - Currencies are basically commodities whose value is based on supply and demand.
Demand comes from other countries wanting to buy your currency (or things they need to pay for with your currency). For example, much global oil is priced in dollars, so if you want to buy oil you need to buy dollars. If you think the US dollar is a good place to park your foreign reserves, then you are buying dollars. Thinks the US stock or bond market, or real estate, etc, looks like an attractive investment, then you need to buy dollars.
If a country wants to boost the value of it's currency then they increase interest rates to make it more attractive to foreign investors, or reduce the supply by selling bonds (taking dollars out of the market).
So ... it's complicated. Supply and demand, but tons of factors that go into those.
- I'm interested to understand your theory better but right now the way you've expressed it is hard to make sense of for me.
- What does that mean?by DC-3
- It means the dollar is dying.by rvz
- Basically before if Deutsche bank wanted to pay a Chinese bank, it had to use some intermediary like Bank of China Frankfurt. Now it can settle with the chinese-mainland bank directly.by zipy124
- It means you can settle an international transaction in CNY with Deutsche Bank. Imagine a European lender financing a project in Nigeria that involves purchasing a lot of infrastructure from China.
- It means that nations are beginning to abandon (or at least hedge against) the dollar as the world's currency, due to the host nation's instability and global political situation. "Great Again", indeed.by baggachipz
- Layman here, from what I understand this is a major news : it means China is allowing a foreign corporation (european commercial bank) to offer Yuan currency services to clients. Given how tight of a currency control policy the CCP has, it’s quite surprising that they would let a foreign based company into their currency dealings.by AureliusMA
- The thing I hate the most about current world affairs is the american money printing machine. It is spreading their own internal inflation through out the whole world and we have to suck it hard just to keep their political dominance.
Waiting for the dollar to collapse in the next 100 years and see what it brings to the political arena whether it's for better or worse. I am not afraid of the devil showing off its ugly face, whoever the new devil may be.
by Kuyawa - Judging based on where nations put their diplomatic money, pretty much every major nation in the world (except maybe Japan) has a negative outlook for the USA.
Even the UK is spending a lot to upgrade their embassy in Beijing.
by MichaelZuo - Change happens gradually, and then suddenly.by aljgz
- it also stops, reverses, is interpreted incorrectly, has unforeseen second order effects, etc.by andsoitis
- In the immortal words of Milhouse, "First it started falling over, and then it fell over."
- 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.by JimmyBuckets
- I, for one, would appreciate if we could just move on past these incessantly destructive power struggles as humanity.
- China has some internal documents that address the Thucydides Trap with a Chinese idiom, "There are no just wars in the Spring and Autumn Period."by aprentic
- Can you elaborate a little? I suspect it is a well known concept, but its the first time I heard of it in this context.
- Of course it's Deutsche Bank, I am sure nothing shady will come of that.by jagermo
- Right. The favorite bank of Epstein's cash account will surely keep its integrity /s
- https://fortune.com/2025/10/08/deutsche-bank-and-jeffrey-eps...
- https://www.reuters.com/sustainability/boards-policy-regulat...
by mjg2 - An interesting move. Something that drives me crazy when interacting with China, is that I can only use American payment methods to make a payment from Europe to China. I pay a fee and the merchant pays a fee both to the US. It just sounds broken. I hope this is a step in eventually resolving this.by WhyNotHugo
- You did not make an effort to switch and resorted to the easiest payment method.
Unionpay for example, allows clearing directly in Chinese Yuan and most Chinese native merchants accept them.
by vachina - 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.
by qprofyeh