By Brendan Brown From reading the commentaries you might have imagined that the process of a currency winning international reserve status depends on getting the IMF seal of approval. At least that seems to be the story with China. So, strange to tell, the great international monies of the past evolved either before the IMF was … Continue reading
By Jeffrey D. Sachs China is now experiencing what Japan went through a generation ago: a marked slowdown in economic growth after demands by the United States that it restrict its exports. In the late 1980s and early 1990s, Japan was criticized by the US as an “unfair trader” by virtue of its soaring manufacturing exports. … Continue reading
China’s yuan has emerged to become the fourth most-used currency in the world for cross-border payments in August, according to a report published by global transaction services organization SWIFT (The Society for Worldwide Interbank Financial Telecommunication). For the first time ever, the yuan has moved ahead of the Japanese yen, and rose to its highest ranking ever, despite devaluations from its Central Bank. There was … Continue reading
After six years of mystery over how much gold China is actually hoarding, the nation surprised the bullion market on Friday by unveiling its first reserve figures since last published in April 2009, which showed a near 60 percent jump versus expectations that holdings had tripled since that time. China has boosted bullion assets to 53.31 million troy … Continue reading
Around $1 trillion in global currency reserves will switch into Chinese assets should the International Monetary Fund (IMF) endorse the yuan as a reserve currency and include it in its Special Drawing Rights (SDR) basket this year, according to Standard Chartered, Bloomberg reports. “SDR inclusion in 2015 would likely have a significant market impact, driving an immediate sharp … Continue reading
By Deena Zaidi The US dollar has been on the rise every day setting new records. With the upward pressure on dollar, stronger dollar could tighten financial conditions across the globe. Further the rising dollar could be offsetting the benefit of low cost oil within the US economy. Over the past six months, the trade-weighted dollar … Continue reading
Japan is trying to increase its influence by reinventing itself in the areas of foreign policy, security and economics and by repositioning itself in the global order. However, while it is observed that the country’s foreign and security policies are going through a tough test, it also would be difficult to say that developments in … Continue reading
By Pyotr Iskenderov The United States and the EU continue the policy of confrontation with Russia in Europe and the post-Soviet space against the background of China’s growing clout and stronger influence on European affairs. China’s global contribution is not limited by fast moving consumer goods. Today it leads the United States in GDP adjusted … Continue reading
The Global Financial Crisis has increased the importance of the renminbi as an international currency. This column describes how the status of the remnibi has changed relative to that of the dollar and the euro. It also discusses what their future as future currencies would be. The author suggests that within 10 years, the renminbi … Continue reading
By Andrew DeWit In the waning days of 2014, by far the hottest year humans have ever measured,1 Bloomberg News warned that the foreign investors who control roughly 70% of volume traded on the Tokyo Stock Exchange “have had just about enough of Abenomics.” Decrying that there is no Japanese Facebook or Google, and that … Continue reading