It looks like you're using an Ad Blocker.

Please white-list or disable AboveTopSecret.com in your ad-blocking tool.

Thank you.

 

Some features of ATS will be disabled while you continue to use an ad-blocker.

 

China's yuan set for IMF reserve status

page: 1
6

log in

join
share:

posted on Nov, 29 2015 @ 02:08 PM
link   
The time has arrived, ATS. The time for China's Yuan to get reserve status by the IMF. China applied for the rating last year and it looks like China will achieve this status next year. China has been unsuccessful so far in achieving IMF status because it devalued its currency to make gains in exports but now they are said to be making the proper adjustments to fix this issue.



Just the US dollar, the euro, Japan's yen and the British pound are currently part of this select band.
Earlier this month, IMF head Christine Lagarde backed the yuan's inclusion.
If the decision is made, the yuan is likely to join the basket next year, experts said.
China is the world's second largest economy behind the US, and asked for its currency to become a reserve currency last year.
Concerns about Beijing keeping the yuan artificially low to help exporters is one reason why the currency has previously failed to meet the criteria for reserve currencies set out by the IMF.
However, Chinese officials have a made a concerted effort to build support for the yuan's inclusion, and a recent IMF staff report endorsed such a move.
Initially, the currency's inclusion would be largely a symbolic gesture, analysts said.


We all knew it was just a matter of time, right ATS? China has long sought a reserve status and now that it seems likely, I wonder how this will change things on the world stage...? What say you, ATS?

www.bbc.com...



posted on Nov, 29 2015 @ 02:29 PM
link   
a reply to: lostbook

I say ..

..that I agree with the Bloomberg analysis saying that most of all it is a Chinese ego boost. It is not believed to make much of a difference to anyone.



posted on Nov, 29 2015 @ 02:33 PM
link   
a reply to: lostbook

One aspect I would think is that it would give them another level of diplomatic stature .It could make certain regional economies that have had to use western $$ the choice for who they can back or not ...This might also make it harder for the west to launch economic war as easy as before . ..I think it a win win ...thanks op



posted on Nov, 29 2015 @ 03:14 PM
link   
Well now China went and did something not smart ....sale of gold on a Sunday three months ago....they sold so much so fast it was not in their interest compensation-wise. They dumped it too fast instead of slowly..... Those folks are going down the drain and us with them......

I was selling silver and punched the take profit button just at the right moment....twas a spike....doubled that new clients account three times in three weeks...

edit on 29-11-2015 by GBP/JPY because: our new King.....He comes right after a nicely done fake one

edit on 29-11-2015 by GBP/JPY because: last minute thought there....yezz



posted on Nov, 29 2015 @ 03:42 PM
link   
a reply to: lostbook

So we are adding another currency.. ok.

* - US Dollar
* - Euro
* - German Mark
* - French Franc
* - Pound Sterling
* - Japanese Yen
* - Canadian Dollar
* - Australian Dollar
* - Swiss Franc
* - Yuan

What is a reserve currency?


A reserve currency (or anchor currency) is a currency that is held in significant quantities by governments and institutions as part of their foreign exchange reserves.


Nothing new.
edit on 29-11-2015 by Xcathdra because: (no reason given)



posted on Nov, 29 2015 @ 03:49 PM
link   

originally posted by: Xcathdra

* - German Mark
* - French Franc


Both these currencies were incorporated into the Euro.



posted on Nov, 29 2015 @ 03:51 PM
link   
Just dropping this off as it has lots of info with numbers and time frames of what has happened is happening and what is hoped to happen for China's future ...very well worth the read ...Silk Roads, Night Trains and the Third Industrial Revolution in China … by Pepe Escobar thesaker.is...



Since Xi announced his One Belt, One Road policy in Kazakhstan in 2013, Pricewaterhouse Coopers in Hong Kong estimates that the state has ploughed more than $250 billion into Silk Road-oriented projects ranging from railways to power plants. Meanwhile, every significant Chinese business player is on board, from telecom equipment giant Huawei to e-commerce monster Alibaba (fresh from itsSingles Day online blockbuster). The Bank of China has already provided a $50 billion credit line for myriad Silk Road-related projects. China’s top cement-maker Anhui Conch is building at least six monster cement plants in Indonesia, Vietnam, and Laos. Work aimed at tying the Asian part of Eurasia together is proceeding at a striking pace. For instance, the China-Laos, China-Thailand, and Jakarta-Bandung railways – contracts worth over $20 billion – are to be completed by Chinese companies before 2020.

With business booming, right now the third industrial revolution in China looks ever more like a mad scramble toward a new form of modernity.
I want to add this tid bit as another member had brought up the situation in the logistics dealing with Afghanistan .from the same piece

On another front, even though it’s not directly part of China’s new Silk Road planning, don’t forget about the Iran-India-Afghanistan Agreement on Transit and International Transportation Cooperation. This India-Iran project to develop roads, railways, and ports is particularly focused on the Iranian port of Chabahar, which is to be linked by new roads and railways to the Afghan capital Kabul and then to parts of Central Asia.

Why Chabahar? Because this is India’s preferred transit corridor to Central Asia and Russia, as the Khyber Pass in the Afghan-Pakistani borderlands, the country’s traditional linking point for this, remains too volatile. Built by Iran, the transit corridor from Chabahar to Milak on the Iran-Afghanistan border is now ready. By rail, Chabahar will then be connected to the Uzbek border at Termez, which translates into Indian products reaching Central Asia and Russia.

Think of this as the Southern Silk Road, linking South Asia with Central Asia, and in the end, if all goes according to plan, West Asia with China. It is part of a wildly ambitious plan for a North-South Transport Corridor, an India-Iran-Russia joint project launched in 2002 and focused on the development of inter-Asian trade.

edit on 29-11-2015 by the2ofusr1 because: (no reason given)



posted on Nov, 29 2015 @ 06:23 PM
link   
One question, why is it ok for America to devalue its currency through quantitative easing and an unrestricted government debt ceiling, but not ok for China?

As for the IMF, they do need to make the organization relevant to the global economy or else what is the point of their existence.



posted on Nov, 29 2015 @ 09:15 PM
link   

originally posted by: kwakakev
One question, why is it ok for America to devalue its currency through quantitative easing and an unrestricted government debt ceiling, but not ok for China?

As for the IMF, they do need to make the organization relevant to the global economy or else what is the point of their existence.


The US is the only nation that has a debt ceiling in the first place, any other nation that has their own currency has an unlimited debt ceiling.

Second, Quantative Easing hasn't resulted in inflation because monetary value isn't inversely proportional to the supply. The velocity of money is just as important, if not more so.



posted on Nov, 29 2015 @ 09:21 PM
link   
a reply to: kwakakev

It was ok for China to devalue its currency in August 2015 so im not sure what your upset over.

China devalues its currency: What you need to know


Hong Kong (CNN)China's currency has fallen 3.5% against the dollar in the past two days, setting the currency up for its largest two-day decline in decades.

On Tuesday, the People's Bank of China surprised markets by executing a one-time 2% devaluation of the yuan and changing the way it's traded. The currency's losses mounted Wednesday.

The shock move has rattled financial markets and Republican presidential candidate Donald Trump told CNN that it could be "devastating" for the U.S. economy.

Trump and others say China is purposely weakening the yuan, also known as the renminbi, to lower the cost of its exports.

This has fueled talk of a currency war, where countries use exchange rates to keep their products competitive on global markets.

However, the People's Bank of China says the policy change was made in response to market forces, which will be allowed more control over the currency in the future.


Click link for remainder of article.



posted on Nov, 30 2015 @ 06:34 AM
link   
a reply to: Aazadan

I am not upset, but curious as to how these influential economic decisions are made. Are they based on sound scientific principles or is it more of a political football match?

Personally I do not see a lot of economic difference between pumping money into a bank with quantitative easing or a manufacturing plant with devaluation to keep it all running. For those charged with the management of an economy, there are lots of manipulations and decisions to be made.



posted on Nov, 30 2015 @ 06:54 AM
link   

originally posted by: kwakakev
a reply to: Aazadan

I am not upset, but curious as to how these influential economic decisions are made. Are they based on sound scientific principles or is it more of a political football match?


Basing them on sound scientific principles isn't possible because economics is at best a soft science. There's also a few competing schools of thought on the subject and those schools of thought are mutually exclusive. At best economics has a handful of observed causes and effects but even that stretches things because economics tries to rely on logic while humans particularly when making purchasing decisions are emotional rather than logical. With competing viewpoints and an equal amount of facts behind them all that leads to decisions being made more along lines of ideology than anything else.



posted on Dec, 1 2015 @ 04:16 AM
link   
a reply to: Aazadan

So economic management is more like a football match as national interests have international implications. For those that have tried to bring transparent accounting systems, it has its challenges.



Second, Quantative Easing hasn't resulted in inflation because monetary value isn't inversely proportional to the supply. The velocity of money is just as important, if not more so.


In the short term I very much agree, having an extra $100 Trillion on the books does very little if its access and circulation is kept out of the general monetary circulation. Can the USA tame this or is it going to break out in hyperinflation? So far so good.



posted on Dec, 1 2015 @ 08:16 AM
link   
China might see long term some positive trade benefits from this but, mostly it is just a prestige thing. The IMF only designates currencies that can be used in its emergency loans. Central banks will have to decide if China is transparent enough for them use it as a reserve currency. This however at least opens the door to that possibility. If it does it will mostly compete with the Swiss Franc and Australian Dollar.



new topics

top topics



 
6

log in

join