Kathianne
08-10-2015, 11:07 PM
Remember this?
http://www.ibtimes.com/will-chinese-yuan-replace-us-dollar-global-reserve-currency-1125803
Will The Chinese Yuan Replace The US Dollar As The Global Reserve Currency?By Moran Zhang (http://www.ibtimes.com/reporters/moran-zhang) @moranzhang (http://www.twitter.com/moranzhang) <date style="color: rgb(102, 102, 102); font-family: RobotoRegular, sans-serif; font-size: 14px; line-height: 20px; box-sizing: border-box; border: 0px none; list-style: none outside none; margin: 0px; outline: none 0px; padding: 0px; -webkit-font-smoothing: antialiased; display: inline;">on March 14 2013 6:15 AM EDT
</date>As China moves up the economic pecking order, it has been trying to promote the yuan as an alternative to the U.S. dollar, which has been the dominant global reserve currency since the 1944 Bretton Woods conference.
Currently, China represents around 11 percent of global gross domestic product, more than 10 percent of world trade and nearly 9 percent of total foreign direct investment.
It is interesting to note that, of the currencies of the world’s six largest economies (http://en.wikipedia.org/wiki/List_of_countries_by_GDP_%28nominal%29), China’s yuan is the only one that is not a reserve currency.
China's economy is also on the path of surpassing that of the U.S. in less than two decades, according to projections made in a recent report (http://www.dni.gov/index.php/about/organization/national-intelligence-council-global-trends) issued by the U.S. National Intelligence Council.
“The Chinese yuan is clearly on the path towards becoming a global trade currency, but the country's closed capital account prevents it from becoming a reserve currency,” said Karl Schamotta, a senior market strategist at Western Union Business Solutions based in Calgary, Canada.
Despite criticisms of Beijing's interventions in currency markets, it is clear that China is laying foundations for wider acceptance of the yuan.
The numbers tell the story. Today, more than 10,000 financial institutions are doing business in Chinese yuan, up from 900 in June 2011. The pool of offshore yuan, non-existent three years ago, is now near 900 billion ($143 billion). And the proportion of China’s exports and imports settled in yuan has increased nearly sixfold in three years to nearly 12 percent.
It is clear that more and more foreign enterprises that import goods from China choose to pay in yuan, especially those in the emerging markets.
...
Today:
http://www.bloomberg.com/news/articles/2015-08-11/china-weakens-yuan-reference-rate-by-record-1-9-amid-slowdown
China Slashes Yuan Reference Rate by Record 1.9%
<time class="published-at time-based" datetime="2015-08-11T01:24:36.795Z" itemprop="datePublished" style="box-sizing: border-box; -webkit-font-smoothing: subpixel-antialiased; font-family: NHaasGroteskTXPro-55Rg, 'Helvetica Neue', Helvetica, Arial, sans-serif; opacity: 1; transition: opacity 0.5s ease-out; display: block; border: 0px; font-size: 0.8125rem; float: left; margin-right: 0.3125rem; line-height: 1.25rem; padding: 0px;">August 10, 2015 — 6:24 PM GMT+7</time>
Updated on <time class="updated-at__time" datetime="2015-08-11T03:19:33.298Z" style="font-size: 0.8125rem; line-height: 1.25rem; box-sizing: border-box; -webkit-font-smoothing: antialiased; font-family: NHaasGroteskTXPro-55Rg, 'Helvetica Neue', Helvetica, Arial, sans-serif; color: rgb(38, 38, 38);">August 10, 2015
</time>China devalued the yuan by the most in two decades, ending a de facto peg to the dollar that’s been in place since March and battered exports.
The People’s Bank of China cut its daily reference rate for the currency by a record 1.9 percent, triggering the yuan’s biggest one-day loss since China unified official and market exchange rates in January 1994. The change was a one-time adjustment, the central bank said in a statement, adding that it plans to keep the yuan stable at a “reasonable” level and will strengthen the market’s role in determining the fixing.
“It looks like this is the end of the fixing as we know it,” said Khoon Goh, a Singapore-based strategist at Australia & New Zealand Banking Group Ltd. “The one-off devaluation of the fix and allowing more market-based determination takes us into a new currency regime.”
The PBOC had been supporting the yuan to deter capital outflows and encourage greater global usage as China pushes for official reserve status at the International Monetary Fund. The intervention contributed to a $300 billion slide in the nation’s foreign-exchange reserves over the last four quarters and made the yuan the best performer in emerging markets, eroding the competitiveness of Chinese exports.
The currency dropped 1.4 percent to 6.2980 per dollar as of 11:12 a.m. in Shanghai, and slid 1.6 percent in Hong Kong’s offshore trading. The onshore spot rate was 1.1 percent weaker than the reference rate of 6.2298, within the 2 percent limit allowed by the central bank.
...
Who knows what will be discussion in two more years?
http://www.ibtimes.com/will-chinese-yuan-replace-us-dollar-global-reserve-currency-1125803
Will The Chinese Yuan Replace The US Dollar As The Global Reserve Currency?By Moran Zhang (http://www.ibtimes.com/reporters/moran-zhang) @moranzhang (http://www.twitter.com/moranzhang) <date style="color: rgb(102, 102, 102); font-family: RobotoRegular, sans-serif; font-size: 14px; line-height: 20px; box-sizing: border-box; border: 0px none; list-style: none outside none; margin: 0px; outline: none 0px; padding: 0px; -webkit-font-smoothing: antialiased; display: inline;">on March 14 2013 6:15 AM EDT
</date>As China moves up the economic pecking order, it has been trying to promote the yuan as an alternative to the U.S. dollar, which has been the dominant global reserve currency since the 1944 Bretton Woods conference.
Currently, China represents around 11 percent of global gross domestic product, more than 10 percent of world trade and nearly 9 percent of total foreign direct investment.
It is interesting to note that, of the currencies of the world’s six largest economies (http://en.wikipedia.org/wiki/List_of_countries_by_GDP_%28nominal%29), China’s yuan is the only one that is not a reserve currency.
China's economy is also on the path of surpassing that of the U.S. in less than two decades, according to projections made in a recent report (http://www.dni.gov/index.php/about/organization/national-intelligence-council-global-trends) issued by the U.S. National Intelligence Council.
“The Chinese yuan is clearly on the path towards becoming a global trade currency, but the country's closed capital account prevents it from becoming a reserve currency,” said Karl Schamotta, a senior market strategist at Western Union Business Solutions based in Calgary, Canada.
Despite criticisms of Beijing's interventions in currency markets, it is clear that China is laying foundations for wider acceptance of the yuan.
The numbers tell the story. Today, more than 10,000 financial institutions are doing business in Chinese yuan, up from 900 in June 2011. The pool of offshore yuan, non-existent three years ago, is now near 900 billion ($143 billion). And the proportion of China’s exports and imports settled in yuan has increased nearly sixfold in three years to nearly 12 percent.
It is clear that more and more foreign enterprises that import goods from China choose to pay in yuan, especially those in the emerging markets.
...
Today:
http://www.bloomberg.com/news/articles/2015-08-11/china-weakens-yuan-reference-rate-by-record-1-9-amid-slowdown
China Slashes Yuan Reference Rate by Record 1.9%
<time class="published-at time-based" datetime="2015-08-11T01:24:36.795Z" itemprop="datePublished" style="box-sizing: border-box; -webkit-font-smoothing: subpixel-antialiased; font-family: NHaasGroteskTXPro-55Rg, 'Helvetica Neue', Helvetica, Arial, sans-serif; opacity: 1; transition: opacity 0.5s ease-out; display: block; border: 0px; font-size: 0.8125rem; float: left; margin-right: 0.3125rem; line-height: 1.25rem; padding: 0px;">August 10, 2015 — 6:24 PM GMT+7</time>
Updated on <time class="updated-at__time" datetime="2015-08-11T03:19:33.298Z" style="font-size: 0.8125rem; line-height: 1.25rem; box-sizing: border-box; -webkit-font-smoothing: antialiased; font-family: NHaasGroteskTXPro-55Rg, 'Helvetica Neue', Helvetica, Arial, sans-serif; color: rgb(38, 38, 38);">August 10, 2015
</time>China devalued the yuan by the most in two decades, ending a de facto peg to the dollar that’s been in place since March and battered exports.
The People’s Bank of China cut its daily reference rate for the currency by a record 1.9 percent, triggering the yuan’s biggest one-day loss since China unified official and market exchange rates in January 1994. The change was a one-time adjustment, the central bank said in a statement, adding that it plans to keep the yuan stable at a “reasonable” level and will strengthen the market’s role in determining the fixing.
“It looks like this is the end of the fixing as we know it,” said Khoon Goh, a Singapore-based strategist at Australia & New Zealand Banking Group Ltd. “The one-off devaluation of the fix and allowing more market-based determination takes us into a new currency regime.”
The PBOC had been supporting the yuan to deter capital outflows and encourage greater global usage as China pushes for official reserve status at the International Monetary Fund. The intervention contributed to a $300 billion slide in the nation’s foreign-exchange reserves over the last four quarters and made the yuan the best performer in emerging markets, eroding the competitiveness of Chinese exports.
The currency dropped 1.4 percent to 6.2980 per dollar as of 11:12 a.m. in Shanghai, and slid 1.6 percent in Hong Kong’s offshore trading. The onshore spot rate was 1.1 percent weaker than the reference rate of 6.2298, within the 2 percent limit allowed by the central bank.
...
Who knows what will be discussion in two more years?