While you were busy watching fireworks on the Fourth of July holiday, or were perhaps distracted by the World Cup events in Brazil, China just pulled South Korea into its sphere of influence. This is but one piece of a bigger predicted picture (See also here) by Global Geopolitics where China will be a regional power leading an Asian bloc of nations under its protectorate — with the US out of Asia.
China designated a clearing bank in Seoul for yuan transactions in South Korea on Friday, coinciding with a visit by President Xi Jinping, as Beijing promotes greater use of its currency overseas, AFP reports.
China’s central bank has authorised the Bank of Communications, the country’s fifth largest lender, to undertake yuan clearing business in the South Korean capital, the People’s Bank of China (PBoC) said in a statement.
The announcement came as Chinese President Xi Jinping wrapped up a state visit to South Korea on Friday. China is seeking to make the yuan – also known as the renminbi – used more internationally in keeping with the country’s status as the world’s second biggest economy behind the United States.
Full article: Beijing, Seoul agree to direct trade in national currencies (The Voice of Russia)