The Beginning and the End of the Next Global Currency

As China’s exporters were hit by the global re...

As China’s exporters were hit by the global recession in 2008, the People’s Bank of China began stepping up her intervention programme to prevent appreciation of the Yuan. By April 2011 Chinese state controlled banks had accumulated over one trillion in US treasuries and over 1.5 trillion in other dollar assets. China has indicated she plans to further rebalance her economy towards domestic consumption, and intends to stop buying dollar assets by 2016. (Photo credit: Wikipedia)

A while ago in predicted the currency changes in the market to a number of my colleagues who then could not see the “Sign of the Times” but l was looking at a number of indicators. These were that the Chinese believe in keeping to customs and are steeped very much in the past ,so much so that they would keep their “Sovereign Currency” the Yuan in tact. Their decision on may occasions has been to not devalue, as so many other countries have advised. They have stuck to their guns and the time is coming when this “Third World Currency” will become one that everyone will want to trade!

So to today’ s article in the AFP it deals with changes and how the deals with both London and Singapore will challenge the once Almighty Dollar and how with new free-trade zones opening up ,it could well one day become the “People’s Currency” then where will this leave these oil rich nations. The demise of the “Petro-Dollar ” could we finally see the end of OPEC and their stranglehold on the per barrel price.

 AFP – With deals from London to Singapore, China is seeking a greater role for its yuan currency in global markets to challenge the hegemony of the almighty dollar.

The most attention-grabbing reform planned for Shanghai’s new free trade zone is free convertibility of the yuan — also known as the renminbi, or “people’s money” — an unprecedented change which would allow greater use of the currency.

But no timetable has been specified, and a true contest between Mao ZedongCommunist China‘s founding father whose face is emblazoned on most yuan notes, and Benjamin Franklin on the $100 bill will be years in the making.

Chinese currency : Renminbi.

Chinese currency : Renminbi. (Photo credit: Wikipedia)

For decades the US has benefited to the tune of trillions of dollars-worth of free credit from the greenback’s role as the default global reserve unit.

But as the global economy trembled before the prospect of a US default last month, only averted when Washington reached a deal to raise its debt ceiling, China’s official Xinhua news agency called for a “de-Americanised” world.

It also urged the creation of a “new international reserve currency… to replace the dominant US dollar”.

For China — which has the world’s biggest foreign exchange reserves — the immediate appeal of a greater role for the yuan is lubricating trade flows and drawing foreign investment.

“Policymakers have made new efforts to increase the attraction of the renminbi in global markets,” said Capital Economics analyst Wang Qinwei.

He pointed to a deal with Britain in October allowing London-based institutions to invest directly in China — avoiding an expensive detour via Hong Kong — with an initial quota of 80 billion yuan ($12.9 billion).

A week later Beijing signed a similar 50 billion yuan agreement with Singapore.

China’s central bank, the People’s Bank of China, also signed a currency swap deal with the European Central Bank last month for 45 billion euros ($61 billion), giving euro zone banks greater access to the yuan.

In the run-up to an important plenum of the ruling Communist Party, Zhao Longkai of the Guanghua School of Management at Peking University, said the measures were “important steps” but added that progress was likely to be slow.

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Everyone Needs Car Insurance but Getting the Best Deal is Becoming Harder by the Year

English: A component diagram illustrating an I...

English: A component diagram illustrating an Insurance policy administration software system (Photo credit: Wikipedia)

When you first begin driving your insurance will most likely be the highest it will be in your life-time. This is because an insurance company needs to know you’re not going to cost them too much money. When you first begin driving they have no idea what kind of driver you’ll be; courteous, law-abiding and careful or reckless, fast and inconsiderate.

The fact that you may have more accidents and this could end up costly for the Insurance company in the early days ,reflects your initial premiums.

ASSESSMENT OF RISK:  

The fact is they have no track-record to look at for them to access your driving skills and so actuaries will base their  risk in the policy and cost of premiums for a type of cover at the higher rate for your first year, that will decrease year on year providing you have no accidents or points on your licence. The other factors that their risk assessment will take into account are age, under 25 and automatically your premium will be loaded, with some form of excess. Also should you be a high mileage driver they will take this into account. Other factors affecting cost will relate to where you park your car at night, be it a garage or on the open road.  In the past gender used to play an important role, but with more and more companies rating the customer as one gender for price, due to changes by the “Equality Rights Commission” this does not play such an important part in pricing.

Knowing which factors can reduce the amount you pay can help you know how you should drive and what you can do to reduce those costs, however when it comes to renewal how do you know you’re getting the best offer for your safe driving? The renewal you’re sent through the door is almost never the best deal you could get. Even ringing them directly doesn’t mean that they can offer you the best deal for you. On-line comparison sites tend to be the best way to get value for money. You can decide on your type of cover and see offers from many insurers and choose the one you prefer.  There are many price comparison sites and they will use the rule of providing a policy on the information you type into their search machine, but remember you only get what you pay for, and exclusions apply with every policy! They are not providing  this service for nothing, and will have metered into the premium costs their commission somewhere down the line ,even though as a consumer this will not be obvious.

Vintage Ad #1,168: Sympathy from the Car Insur...

Vintage Ad #1,168: Sympathy from the Car Insurance Industry (Photo credit: jbcurio)

My Conclusion and Overview of the Market:

During the time l was selling insurance for both car and household l kept one thing in mind at all times ,this was that the most important person in everything l was doing was the customer. Nowadays we are blinded with technology, that on the face of it looks like it is assisting us with the best arrangement ,but as l have found out through research and years of experience, things are not as they seem.

The real fact that everyone should be looking at is not so much the price or the cover, but simply what are you not covered for in this well written and presented insurance policy! So look carefully at the part in the policy document that states ” What this Policy does not Cover” and should anything be in there that you thought was covered, decline to sign up.

REMEMBER: Always ask for a copy policy document before you agree to the New Policy or sign any policy agreement ,as once you have and pay the first premium, it is harder to stop the policy and get yourself a full refund. 

And: 

You never know how good a company is until you claim! 

 

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