The next stage in West-East power transfer has begun. But does it herald the end of financial nationality?

HSBC and Standard Chartered are among a range of global banks – including such names as Citigroup and J PMorgan – currently holding seminars around Asia, Europe and even the USA to promote the Yuan as the best means of settling China trades from here on in.

As always, the Western banks recognise no national loyalty, falling into line with what they know to be a top priority among the leaders of the Beijing regime. Standard Chartered in particular fronted Chinese central bank officials on a roadshow to Korea and Japan during June this year. Spain’s second-biggest bank BBVA is also drawing up plans for a global marketing campaign that will focus on Latin American companies exporting to China.

China has moved forward on a broad front to externalise use of its currency in recent months, working hard to establish Hong Kong as the global centre for offshore Yuan business. But on a broader canvas still, two massive trends are apparent here.

The first is the addition of the Yuan to that accepted range of international deal-settling currencies – something that has been inevitable for some time. The second is even more potentially transformatory: the approaching hegemony of globalist banks over any individual nation.

The Slog’s view is that, however set this second trend may seem, it will be reversed by events to come in the next two years. Globalism is doomed by any number of factors; and in that context, banks will become instruments of imperialism – and defence against them – as never before.