What is the problem? The problem is that onshore RMB cannot be freely exchanged, and offshore RMB is also relatively difficult. Additionally, we export more products rather than copyrights, the exchange rate is relatively weak, and we cannot achieve the 1:7 ratio like the US dollar, and there is an increase in issuance to enhance people's purchasing power.

Opening a Vault in Saudi Arabia! An Important Step for the Internationalization of the Renminbi!

Today's biggest news is not the US-UK tariff agreement, but the launch of the Saudi delivery vault at the Shanghai Gold Exchange!

Many people do not understand what this is; it is actually an agreement between China and Saudi Arabia and other Gulf Cooperation Council countries to purchase oil with Renminbi, but they can exchange the Renminbi for gold unconditionally at the Shanghai Gold Exchange.

However, the Middle Eastern princes will still be worried because the delivery happens in Shanghai; what if something unexpected happens and the gold cannot be transported?

On April 21, four departments of the People's Bank of China specifically mentioned exploring the internationalization of specific varieties of delivery at the Shanghai Gold Exchange and setting up overseas receiving warehouses.

As a result, it was officially announced today that the Shanghai Gold Exchange will open a delivery sub-warehouse in Saudi Arabia!

By opening the Shanghai Gold Exchange's storage facilities on Saudi territory, the gold is now right under their noses, and the princes are finally smiling.

This move signals that the internationalization of the Renminbi is indeed on the way. At the very least, it means that the past global trade currency settlement system of petrodollars will gradually be partially replaced by the new petroyuan-gold system.