On Oct. 28, Chinese Vice-Premier Zhang Gaoli announced that beginning today, China will commence direct trade with Singapore using their own currencies to facilitate economic transactions. The significance of this move is that this new trade agreement will bypass the dollar and reserve currency, and add another major economy to the growing coalition of Asian and Eurasian nations seeking an end to U.S. hegemony over the global financial system.
Singapore is not just another Asian country with little to offer to the world. In fact, Singapore is currently ranked in the top three in global GDP per capita, and are considered one of the top two economies for domestic and international development, with surveyed opinions labeling Singapore as the easiest place in the world to do business.
While Singapore will continue to have open trade with other nations that use the dollar as their medium for global transactions, this new trade agreement will partner the new number one economy (China) with the top global development economy (Singapore), and create a coalition of nations much larger and stronger than those like Japan who’s ties are firmly with the United States and the West.
SINGAPORE and China will start direct currency trading today, in a move set to lower the cost of doing business. It will also boost the already strong trade links between the two as Beijing pushes to internationalise the yuan.
Chinese Vice-Premier Zhang Gaoli announced the move yesterday at a high-level bilateral meeting in eastern Suzhou that he co-chaired with Singapore Deputy Prime Minister Teo Chee Hean.
“This is a very major and significant development. I still remember my first visit to China 30 years ago. The currency was not even unified then and we had foreign exchange certificates. (The yuan) was not tradable at all,” Mr Teo told reporters.
“But today, we have direct trading between the (yuan) and the Singdollar… It will reduce the cost of doing business and make it more convenient,” he added. Before this, companies that wanted to convert large amounts of the Singapore dollar to yuan, or vice versa, had to do so via an intermediate currency. – Asia One
Over the past two months, nations like China, Russia, and now Singapore have accelerated their programs and processes to divest their economies from dollar hegemony, with several agreements to commence trading in oil, natural gas, gold, and other commodities being created and implemented. And as these large and powerful economies set a new standard in the direction of global trade for the future, it will not be long before other nations, especially those within the Eurozone who are feeling immense pressures from deflation and economic recession, to also choose to reject the dollar and join the BRICS in participating in global trade using direct currency formats.
With today’s new trade agreement with Singapore, China has ensured itself continued economic success and greater access to one of the richest markets in the world. And with the Yuan being floated in more and more countries, and being involved in larger percentages of global trade more and more each day, the time of reckoning for the dollar is coming on very quickly, with all that is needed is for the Yuan to reach the critical mass number of 51% for the reset world to acknowledge that the dollar is no longer the standard as the world’s reserve currency.