Grand Rapids, MI -- (SBWIRE) -- 04/25/2013 -- For those of us who are too busy to stay on top of events in the world's economy, financial advisor Dennis Tubbergen lends a helping hand.
Tubbergen is a financial advisor, author, radio show host and CEO of PLP Advisors, LLC. Tubbergen does his best to give brief updates when it comes to some of the latest significant events in U.S. and world economics and politics and how these events may impact the average American.
Whether people enjoy his weekly newsletter at www.moving-markets.com or his blog at www.dennistubbergen.com, Tubbergen can be counted on to share his viewpoints and opinions. On April 19, 2013 his blog was titled Australia to Bypass U.S. Dollar in Trade with China.
"While the U.S. Dollar may still be the best of the fiat currencies, another development this week may indicate that the clock is ticking on the U.S. Dollar's reign as the world reserve currency," began Tubbergen. "Australia and China reached a trade agreement that would allow Australian Dollars to be directly converted into Chinese Renminbi, eliminating the need to convert the Australian Dollar to U.S. Dollars when trading with China."
Tubbergen quotes below from an April 8, 2013 article on News.com.au.
WESTPAC and ANZ banks will be the first to directly trade Australian dollars into Chinese yuan under a landmark currency deal that will begin on Wednesday.
On a visit to China's financial capital of Shanghai, Prime Minister Julia Gillard said it was the next important step in economic relations.
"This is a strategic step forward for Australia as we add to our economic engagement with China," the PM said.
"This is a huge advantage for Australia. Not only for our big businesses, but also for our small and medium enterprises that want to do business here."
"All of this is about growing our economic exchange between Australia and China. That's good for Australian jobs, good for Australian growth."
ANZ and WESTPAC have been granted licenses by the People's Bank of China for direct trading.
WESTPAC chief executive Gail Kelly and ANZ boss Mike Smith, in Shanghai for the announcement, said they were delighted.
"This takes cost out and makes it a whole lot more convenient," Ms. Kelly said.
"This is a strategic development and really does signal a deepening of relationships between China and between Australia, it signals deepening of trade connections and great opportunities for future growth."
Mr. Smith said it would make trade documents far simpler for business by cutting out the complexity of needing to convert first to U.S. Dollars.
"On behalf of ANZ as Australia's largest bank in China we are delighted with this development," Mr. Smith said.
"It's another step in the progress towards deeper ties between both countries in terms of the economic and business development."
Ms. Kelly said it was a great opportunity for WESTPAC customers. Ms. Gillard calmed concerns it could push up the value of the already high Australian dollar.
"It won't have an impact on the level of the dollar," she said.
Under the deal, the Australian dollar will for the first time be directly convertible into Chinese yuan, without going through the U.S. dollar as happens now.
Australia will have the third currency in the world that can be directly traded, after the U.S. dollar and the Japanese yen.
"While I believe the U.S. Dollar will continue to enjoy reserve currency status for quite some time, the shift is beginning with more direct trade agreements being implemented," concluded Tubbergen. "The Australia and China agreement is likely just the first of many."
To read the blog in its entirety go to http://www.dennistubbergen.com and select his April 19, 2013 entry.
Tubbergen’s syndicated radio show can be heard on metro Michigan stations WTKG 1230 AM and WOOD Newsradio1300 AM and 106.9 FM.
About Dennis Tubbergen
Dennis Tubbergen has been in the financial industry for over 25 years and has his corporate offices in Grand Rapids, Michigan. Tubbergen is CEO of PLP Advisors, LLC and has an online blog that can be read at www.dennistubbergen.com. To view Tubbergen’s latest Moving Markets? newsletter, go to www.moving-markets.com.
The opinions expressed herein are those of the writer and not necessarily those of USA Wealth Management, LLC. This update may contain forward-looking statements, including, but not limited to, statements as to future events that involve various risks and uncertainties. Forward-looking statements involve known and unknown risks, uncertainties and other factors which may cause actual events or results to differ materially from those that were forecasted. Therefore, no forecast should be construed as a guarantee. Prior to making any investment decision, individuals should consult a professional to determine the risks, costs, benefits and fees associated with a particular investment. Information obtained from third party resources is believed to be reliable but the accuracy cannot be guaranteed.