Canada, China sign currency deal

[boarderbloke]

[URL="http://www.cbc.ca/news/politics/canada-china-sign-currency-deal-aimed-at-boosting-trade-1.2828707"]Currency Deal[/URL]

Anyone have any idea if or how this may hurt or help grain or livestock commodity prices? Will it make any difference? How so, what would be different from trade taking place now?

<a href="http://www.telegraph.co.uk/finance/comment/liamhalligan/10978178/The-dollars-70-year-dominance-is-coming-to-an-end.html"target=blank>Is This Related to Currency Deal?</a>

[cottonpicken]

I was quite surprised about this,definitely good news,evidence the world trade will strengthen rather than weaken with all the conflic going on.

Didnt think the us would let it happen.

[ajl]

China is looking for suckers who will give them dollars in exchange for worthless yuan. Well played China. The Chinese economy has bigger problems than the US but they are less well known so there are people who think the Chinese currency will become the new reserve currency but not going to happen any time soon. China problems include a shrinking population, real estate mal investment (ghost cities etc.) and an economy dependent totally on exporting.

[wmoebis]

So we now sell our grain to China for Renminbi. What can we buy with those?

Will they only be trade-able with China? Sorta like Canadian Tire money.

[sumdumguy]

Me thinx they just cut the US dollar out of the transaction. Wise move? What's the big deal, Big "C"s? I don't expect a reply. We live in this fog - maybe Tom knows the answer, but then maybe not.

[wilagro]

Harper is asking for trouble on this deal. Chinese money is worse than Canadian Tire money.

Who sets the exchange rate on this deal? You can bet that the Chinese will be the winners and the Americans will "get even" in other ways that will disadvantage Canada.

Shortsighted scheming by China AND Canada against US control...it aint-a-gonna-work.

I hope the Chinese have to eat those American dollars they've accumulated.

[cottonpicken]

Am i big c?,lol. The big deal is as countries replace their fx reserves and replace dollars with yuan those dollars hit the capital markets it goes somewhere. A long time ago I did the math and at one point china had enough dollars to pretty much buy up all the ag land in the us. They have problems and I wouldn't hold them but in terms of international trade we will always have convertibility so i really dont know what the **** you guys are thinking.