Yuan to supersede dollar as top reserve currency: Survey - News and Current Events | futures io social day trading
futures io futures trading


Yuan to supersede dollar as top reserve currency: Survey
Updated: Views / Replies:160 / 0
Created: by kbit Attachments:0

Welcome to futures io.

(If you already have an account, login at the top of the page)

futures io is the largest futures trading community on the planet, with over 90,000 members. At futures io, our goal has always been and always will be to create a friendly, positive, forward-thinking community where members can openly share and discuss everything the world of trading has to offer. The community is one of the friendliest you will find on any subject, with members going out of their way to help others. Some of the primary differences between futures io and other trading sites revolve around the standards of our community. Those standards include a code of conduct for our members, as well as extremely high standards that govern which partners we do business with, and which products or services we recommend to our members.

At futures io, our focus is on quality education. No hype, gimmicks, or secret sauce. The truth is: trading is hard. To succeed, you need to surround yourself with the right support system, educational content, and trading mentors Ė all of which you can find on futures io, utilizing our social trading environment.

With futures io, you can find honest trading reviews on brokers, trading rooms, indicator packages, trading strategies, and much more. Our trading review process is highly moderated to ensure that only genuine users are allowed, so you donít need to worry about fake reviews.

We are fundamentally different than most other trading sites:
  • We are here to help. Just let us know what you need.
  • We work extremely hard to keep things positive in our community.
  • We do not tolerate rude behavior, trolling, or vendors advertising in posts.
  • We firmly believe in and encourage sharing. The holy grail is within you, we can help you find it.
  • We expect our members to participate and become a part of the community. Help yourself by helping others.

You'll need to register in order to view the content of the threads and start contributing to our community.  It's free and simple.

-- Big Mike, Site Administrator

Reply
 
Thread Tools Search this Thread
 

Yuan to supersede dollar as top reserve currency: Survey

  #1 (permalink)
Elite Member
Aurora, Il USA
 
Futures Experience: Advanced
Platform: TradeStation
Favorite Futures: futures
 
kbit's Avatar
 
Posts: 5,872 since Nov 2010
Thanks: 3,301 given, 3,332 received

Yuan to supersede dollar as top reserve currency: Survey

The tightly controlled Chinese yuan will eventually supersede the dollar as the top international reserve currency, according to a new poll of institutional investors.

The survey of 200 institutional investors - 100 headquartered in mainland China and 100 outside of it - published by State Street and the Economist Intelligence Unit on Thursday found 53 percent of investors think the renminbi will surpass the U.S. dollar as the world's major reserve currency.

Optimism was higher within China, where 62 percent said they saw a redback world on the horizon, compared with 43 percent outside China.

"As China's economic influence grows, the global importance of the renminbi will become magnified. Indeed, while for decades it has been a 'greenback world', dominated by the U.S. dollar as the world's primary reserve currency, many think a 'redback world', in which the renminbi enjoys premier status, is increasingly a possibility," the report accompanying the survey said.

This view was shared by European Central Bank Executive Board member Yves Mersch, who said on Wednesday that China's yuan is gaining importance in international trade and investment and might ultimately challenge the U.S. dollar.

However, skeptics of yuan internationalization argued that the renminbi will never be liquid enough across all asset classes to serve as a viable reserve currency, and that people will not trust the renminbi as a store of value.

Despite being a closely-managed currency, the renminbi's global clout has been rising steadily. By the end of 2013, the renminbi had become the second most used trade financing currency and ninth most used currency for payments globally.

Recent moves in the yuan have triggered speculation that the People's Bank of China is getting ready to widen its trading band - which would be a step towards liberalizing the Chinese currency. The yuan is currently allowed to rise or fall by 1 percent in either direction from a level fixed against the dollar each day by the country's central bank.

Ultimately, a greater role for the yuan would require China to liberalize its financial policies, including decreasing exchange-rate intervention, liberalizing interest rates and relaxing restrictions on capital flows.

Mark Matthews, Head of Research Asia at Bank Julius Baer, says recent weakness in the Chinese yuan could be a move executed by the Chinese central bank to shake out speculators.

Two-thirds of the respondents of the survey expect Beijing to complete its financial liberalization within ten years, with a majority expecting major reforms within five.


Financial liberalization in the mainland began in earnest after 2009, with the government's decision to allow cross-border trade settlement in renminbi, ease the process of listing offshore bonds and introduce the renminbi qualified institutional investors (RQFII) program.

The reforms, however, are still limited in scope, with strict quotas for how much currency can move across the border.

Last year, the government launched the Shanghai free-trade zone as a testing ground for financial reforms, including full yuan convertibility.

Yuan to supersede dollar as top reserve currency: survey

Reply With Quote

Reply



futures io > > > > Yuan to supersede dollar as top reserve currency: Survey

Thread Tools Search this Thread
Search this Thread:

Advanced Search



Upcoming Webinars and Events (4:30PM ET unless noted)

Jigsaw Trading: TBA

Elite only

FuturesTrader71: TBA

Elite only

NinjaTrader: TBA

Jan 18

RandBots: TBA

Jan 23

GFF Brokers & CME Group: Futures & Bitcoin

Elite only

Adam Grimes: TBA

Elite only

Ran Aroussi: TBA

Elite only
     

Similar Threads
Thread Thread Starter Forum Replies Last Post
China To Challenge US Dollar Reserve Currency Status Victory Trader News and Current Events 0 October 4th, 2012 11:57 AM
Dollar no longer primary oil currency as China begins to sell oil using Yuan Victory Trader News and Current Events 0 September 13th, 2012 11:51 AM
Zimbabwe Bashes US Dollar, Alligns With Yuan Quick Summary News and Current Events 0 December 1st, 2011 04:20 PM
Yuan expected to become major world currency kbit News and Current Events 0 June 7th, 2011 07:49 AM
Dollar Could Lose Up to 30% in Value as Yuan Strengthens Quick Summary News and Current Events 1 May 18th, 2011 04:24 AM


All times are GMT -4. The time now is 05:06 PM.

Copyright © 2017 by futures io, s.a., Av Ricardo J. Alfaro, Century Tower, Panama, +507 833-9432, info@futures.io
All information is for educational use only and is not investment advice.
There is a substantial risk of loss in trading commodity futures, stocks, options and foreign exchange products. Past performance is not indicative of future results.
no new posts
Page generated 2017-12-13 in 0.08 seconds with 19 queries on phoenix via your IP 54.90.92.204