Chinese yuan to become global reserve currency

[Holmes2]

The International Monetary Fund (IMF) is expected to give the yuan a vote of confidence on Monday and include the Chinese currency in its Special Drawing Rights (SDR) that unites the US dollar, euro, British pound and the Japanese yen.
Adding the yuan as a reserve currency will allow central banks to buy more of the Chinese currency, and boost investment in the Chinese stock market. According to Standard Chartered bank, within five years market players will invest at least $1 trillion in Chinese assets.

The historic decision will come after years of negotiations between Beijing and the IMF. The main obstacle was China’s monetary policy of keeping the yuan artificially low to boost domestic exports.

The list of currencies in the basket hasn’t been updated by the IMF since 2000, when the euro superseded the franc and deutschmark.

The main opponents of including the yuan as reserve currency have been Japan and the US. According to Eswar Prasad, a professor at Cornell University and former head of the IMF's China Division, the two countries are unlikely to thwart the deal this time. "I think it will be very difficult for the IMF, especially given all that China has done this year, to deny China the prize it really wants," he told Reuters in October.

 

[cnleio]

The most powerful weapon 'Made in China' ... get a chance to change the future, might affect our next generations.

 

[C130]

The most powerful weapon 'Made in China' ... get a chance to change the future, might affect our next generations.

Made in Insert name. doesn't last forever.

it could easily go from Made in China to Made in India or Made in Indonesia etc.....

China's goal is for domestic consumption to increase.

 

[VCheng]

The historic decision will come after years of negotiations between Beijing and the IMF. The main obstacle was China’s monetary policy of keeping the yuan artificially low to boost domestic exports.

So will China agree to make the yuan freely convertible? It cannot hope to become a reserve currency without that feature.

 

[cnleio]

Made in Insert name. doesn't last forever.

it could easily go from Made in China to Made in India or Made in Indonesia etc.....

China's goal is for domestic consumption to increase.

EASY ?! ... after India, Indonesia economy reach world N.o2/N.o3 economy ... when the time coming, what about U.S/China/Britain/Japan rank ?

 

[Providence]

Made in Insert name. doesn't last forever.

it could easily go from Made in China to Made in India or Made in Indonesia etc.....

China's goal is for domestic consumption to increase.

You would actually be amazed to know the fact that most companies who have a supply chain advantage have moved their production near to US.
Like Apparel brand Zara

 

[KingWest]

The most powerful weapon 'Made in China' ... get a chance to change the future, might affect our next generations.

Made in China does not have a lot of positive connotations

 

[Providence]

The most powerful weapon 'Made in China' ... get a chance to change the future, might affect our next generations.

Giving an opportunity was IMF's prerogative but making use of it is china's responsibility. Unless China makes it's currency fully convertible, no one would even use renmibi

 

[cnleio]

Made in China does not have a lot of positive connotations

Well ... 'Made in China' export much more than urs, just enjoy it.

Giving an opportunity was IMF's prerogative but making use of it is china's responsibility. Unless China makes it's currency fully convertible, no one would even use renmibi

It doesn't matter, bank currency go first ... later will be personal use, it's just a time problem. Like neighbor nations trade with China, they had used RMB to pay for goods.

 

[Providence]

Well ... 'Made in China' export much more than urs, just enjoy it.


It doesn't matter, bank currency go first ... later will be personal use, it's just a time problem.

huh what are you saying ?

 

[General Observer]

IMF Adds China's Yuan to Basket of Top Currencies - ABC News

 

[KingWest]

Well ... 'Made in China' export much more than urs, just enjoy it.

.

Has nothing to do with the fact that "made in China" products have the same connotation as cheap, unreliable, etc. Its a fact, dont want to argue about a fact with you.

 

[Genesis]

Made in China does not have a lot of positive connotations

So? Your point being?

So will China agree to make the yuan freely convertible? It cannot hope to become a reserve currency without that feature.

It's on its way too, a lot of reforms have taken place already. China is already the fourth most traded currency, above the Yen.

Made in Insert name. doesn't last forever.

it could easily go from Made in China to Made in India or Made in Indonesia etc.....

China's goal is for domestic consumption to increase.

Define Easily, because it doesn't look that easy to me. Seeing as how China's average income is already several times that of those other nations you mentioned.

 

[VCheng]

It's on its way too, a lot of reforms have taken place already. China is already the fourth most traded currency, above the Yen.

Of all the reforms, this one - free convertibility - will mean the most. Let's see how long it takes.

 

[Genesis]

Of all the reforms, this one - free convertibility - will mean the most. Let's see how long it takes.

China to Allow Direct Conversion Between Yuan and Swiss Franc - Bloomberg Business

It is well on its way, but you can't fault China for being cautious, once the cat is out, it's out.