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23 Central banks' investment in Yuan is Growing !
serf
Member Posts: 9,217 ✭✭✭✭
It looks like The USA dollar is in for a big surprise soon!
serf
http://www.scmp.com/business/banking-finance/article/1466621/central-banks-investment-yuan-puts-currency-nearer-reserve
The US dollar is still the world's most widely held reserve currency, accounting for nearly 61 per cent of global allocated reserves at the end of last year, according to IMF data. The ratio has been on a declining trend since 2001, when 71 per cent of the world's reserves were denominated in US dollars.
The IMF does not disclose the percentage of reserves held in yuan, but the emerging market countries' share of reserves in "other currencies" has increased by almost 400 per cent since 2003, while that of developed nations grew 200 per cent, according to IMF data.
Pihlman said "a great number of central banks are in the process of adding [yuan] to their portfolios".
The rising popularity of the yuan among central bankers is probably mainly due to Beijing's extremely favourable treatment of them as it has sought to encourage investment in the yuan.
For example, central banks enjoy preferential treatment in the qualified foreign institutional investor category, both on the size of the quota and the length of the lock-up period. The quotas to the interbank bond markets given to central banks are not publicly known, but some of those announced by investing central banks are up to 10 times larger than others in the programme and, most importantly, free of any capital controls.
"Central banks and sovereign funds have special treatment," Pihlman said. "They have the ability to invest in a way that any other investor does not. When it comes to convertibility, there is nothing kind of formally out there, but the feed back from central banks is that it is fully convertible."
Among the 23 central banks known to have yuan holdings, 11 are from Asian markets with close trade links with mainland China: Australia, Hong Kong, Indonesia, Japan, South Korea, Macau, Malaysia, Nepal, Pakistan, Singapore and Thailand, according to public records from either central banks' own statements or central bankers' interviews with the press.
The rest are five from Europe - Austria, Belarus, Norway, France and Lithuania - and seven from South America or Africa - Bolivia, Chile, Ghana, Kenya, Nigeria, South Africa and Tanzania.
serf
http://www.scmp.com/business/banking-finance/article/1466621/central-banks-investment-yuan-puts-currency-nearer-reserve
The US dollar is still the world's most widely held reserve currency, accounting for nearly 61 per cent of global allocated reserves at the end of last year, according to IMF data. The ratio has been on a declining trend since 2001, when 71 per cent of the world's reserves were denominated in US dollars.
The IMF does not disclose the percentage of reserves held in yuan, but the emerging market countries' share of reserves in "other currencies" has increased by almost 400 per cent since 2003, while that of developed nations grew 200 per cent, according to IMF data.
Pihlman said "a great number of central banks are in the process of adding [yuan] to their portfolios".
The rising popularity of the yuan among central bankers is probably mainly due to Beijing's extremely favourable treatment of them as it has sought to encourage investment in the yuan.
For example, central banks enjoy preferential treatment in the qualified foreign institutional investor category, both on the size of the quota and the length of the lock-up period. The quotas to the interbank bond markets given to central banks are not publicly known, but some of those announced by investing central banks are up to 10 times larger than others in the programme and, most importantly, free of any capital controls.
"Central banks and sovereign funds have special treatment," Pihlman said. "They have the ability to invest in a way that any other investor does not. When it comes to convertibility, there is nothing kind of formally out there, but the feed back from central banks is that it is fully convertible."
Among the 23 central banks known to have yuan holdings, 11 are from Asian markets with close trade links with mainland China: Australia, Hong Kong, Indonesia, Japan, South Korea, Macau, Malaysia, Nepal, Pakistan, Singapore and Thailand, according to public records from either central banks' own statements or central bankers' interviews with the press.
The rest are five from Europe - Austria, Belarus, Norway, France and Lithuania - and seven from South America or Africa - Bolivia, Chile, Ghana, Kenya, Nigeria, South Africa and Tanzania.
Comments
The old saying "Follow the money" has no barriers when it comes to language and country.
serf
The Chinese government will just be absorbed in the frame work of TPP when the time is right!
http://www.huffingtonpost.com/lori-wallach/obamas-asia-trip-tpp-make_b_5201529.html?utm_hp_ref=po
The TPP will not "contain" or isolate China: U.S. officials have repeatedly welcomed China as a prospective TPP member. How can the TPP isolate China if China can become a member? Administration officials note that China could join only if it agreed to the TPP's rules, but those rules would give Chinese products duty-free access to the U.S. market and new foreign investor rights and privileges that would enhance China's relative economic might within the United States. This may explain China's statements of increased interest in joining the TPP. The TPP also will not empower Pacific allies to act as a bulwark against Chinese influence, given that many of those nations see China as a partner. The report cites officials from TPP countries stating that if the TPP were to become a China-containment tool, they would no longer participate in TPP negotiations.