October 1 Chinese yuan will become the world's reserve currency

From October 1, a new reserve currency appears in the global financial system. It will be the Chinese yuan. The decision on this, made in November 2015 by the board of directors of the International Monetary Fund, takes effect tomorrow. Today, the world's reserve currencies include the US dollar, the euro, the British pound sterling and the Japanese yen.

After the Chinese yuan is included in this circle, its share in the composition of world reserve currencies will be 11%. This is the third position after the US dollar (40%) and the euro (31%).

At the same time, it is noted that the yuan is more likely to occupy the position of the euro, which is exempt from the reduction of trading operations in this currency. Over the past year, the share of the euro as a world reserve currency has decreased from 37 to 31%, and this is the most significant drop among all reserve currencies.

The economic environment discusses the question of why the Western economic model decided to “allow” the Chinese yuan to a circle of reserve currencies. Most often, experts say that the Chinese economy directly contributed to this, which is about to come in first place in the world (according to other sources, it has already come out).

However, there is also a version that this is a conscious move by the United States, the goal of which is to “pull out” the yuan to a floating exchange rate, which will lower the competitiveness of Chinese goods.

Recall that in China there is a certain financial regulation by the government, and the United States accuses the Chinese authorities of deliberately undervaluing the yuan.

Comments

[Mountain shooter]

I suppose the dollar will not get any easier from this, whatever they say about the Euro.

[dorz]

... this is a conscious US move, the goal of which is to “draw” the yuan to a floating rate, which will reduce the competitiveness of Chinese goods ...

given that the IMF is completely controlled by the Americans.

[Sterlya]

Heh. moot point. you can’t count on the move.
But. better to keep in RMB. than in all currencies controlled by the mattress mattresses. like these ones. business.
Mattresses then live in paper. yuan in production.
so dead presidents will be cramped

[Observer2014]

Mountain shooter

I suppose the dollar will not get any easier from this, whatever they say about the Euro.

The dollar is an absolute zero on the scale of measuring world currencies. The rest of the currencies are jumping around the dollar. We can discuss the dollar for as long as possible. But for now, the dollar is the starting point for all currencies in the world. You can certainly abandon the dollar. But anyway, when Russia’s trade contacts with Western economies will be the dollar. Remember the USSR. They didn’t know the dollar inside the country. But as soon as the USSR bought something, they immediately needed a dollar. Conclusion. So you need to produce such products yourself to buy it. Agricultural products, weapons, transport and transit services, nuclear energy. And introduce the gold penny at this stage, utopia. He will be taken out for green papers.

[Lord of the Sith]

Since he will take 11%, it turns out he will take 6% from the euro, and 5% from the dollar and the yen?

[KVashentcev]

This is a move so that you don't want to drag China into the Pacific partnership, where initially they did not want to take it, and it did not even strive. Now, as an issuer of world currency, China will have to be drawn into a "partnership" that is beneficial not even to the United States, but to global corporations.

[sandrmur76]

Even a little bit of a pound.

[PKK]

What is there to discuss, the Rothschilds delivered to China, and the Rockefellers to Russia. I believe that not in macroeconomics, but in micro, you need to revive the Soviet currency, which is called 0.5t.

[voyaka uh]

"What is there to discuss, the Rothschilds put on China, and the Rockefellers on Russia" ////

You mixed up, the Rothschilds to Russia, and the Rockefellers to India. They delivered to China
Morgan At the same time, Soros put Brazil on. But Abramovich put it on everyone.
Here are some interesting news from the world of bankers and oligarchs.
Next week they gather for a cup of tea - everything will change in the world of finance.

[corporal]

Quote: PKK

need to revive the Soviet currency, which is called 0.5t.

Inspired by:

[rotmistr60]

This is the third position after the US dollar (40%) and the euro (31%).

I don’t know who (what) and what will make it easier, but the Chinese can be congratulated.

[Egoza]

Quote: rotmistr60

I don’t know who (what) and what will make it easier, but the Chinese can be congratulated.

Lah. Everything as grandmother Vanga said - "the world will be ruled by red money." Wait.

[A jacket]

I don’t think that now everyone will rush to accumulate reserves in RMB, as their value will be directly controlled by the Chinese Central Bank.

[Asadullah]

I don’t think that now everyone will rush to accumulate reserves in RMB, as their value will be directly controlled by the Chinese Central Bank.

What does it mean to accumulate reserves? A reserve in any currency is a toxic asset that makes you poorer every day. If you trade with China, then it is more profitable for you to make payments in RMB. That is why de facto yuan has long been a reserve currency. Remains the official permission of the Central Bank of China to keep RMB abroad.

[Tatar 174]

Quote: Jacket

I do not think that now everyone will rush to accumulate reserves in RMB

Rush - do not rush, but the Dollar and the Euro will have to squeeze. Tomorrow we will see the beginning of this process.

[Polite Moose]

Maybe it’s worth buying yuan?

[Vasiliev Yu]

Under our liberals in the government, it is more profitable to invest in cartridges and carcass.
For any investment will be justified.

[Tatar 174]

Quote: vasiliev yu

Under our liberals in the government, it is more profitable to invest in cartridges and carcass.

Even in potatoes, stopitsot percentage and moonshine more in the cellar in large bottles.

[Roman 11]

Quote: vasiliev yu

Under our liberals in the government, it is more profitable to invest in cartridges and carcass.
For any investment will be justified.

Partisan quietly?

[Operator]

Bloodsucker,
Do not strain the wretched Bathyscaphe from Germany - after the Arabs tore his anus without Vaseline, he forgot all the grammar of Russian, German and Hebrew

[Altona]

Now you can score on the dollar, he will only have payments for oil, and even then not for long. The future lies with the renminbi, since it has a powerful economy with a real sector.

[PKK]

Quote: bathyscaphe

RPK, you with such "smart" thoughts get out at least on any foreign forum. There you will be quickly fucked into the anus and you will merge after the second post maximum.

Dear limited Bathyscaphe. I do not need compliments, I do not draw conclusions, but very serious world-class analysts, I can support or not. Bathyscaphe, I think you need to return to the sandbox, you will be in authority there, but not here.

[Vasiliev Yu]

What a sadist you are. There the kindergarteners will beat the nerd with shovels and bury them there in the sandbox. Nobody likes inadequate nerds.

[uskrabut]

Interesting idea. But with all the wealth of choice of reserve currencies, I would choose another option of savings - gold, real estate, in short, what can be seen and touched and what has weight. Any currency is a virtual value, easily changing its value under the influence of various factors. In other words: currency for settlements, material values ​​for accumulation. You can still invest in stocks, but not in revalued ones, which at a face value of 1 ruble. sold at 1000 rubles.

[APASUS]

Quote: uskrabut

But with all the wealth of choice of reserve currencies, I would choose another option of savings - gold, real estate, in short, what can be seen and touched and what has weight.

Gold would be the best option, but then how would the Americans tax the whole world? And there were enough options, such as a proposal to make the option Energy Ruble, where the unit will always have the equivalent of 1 kilowatt hour.

[gladcu2]

In other words, China has not yet been integrated into the global economy without preserving its sovereignty. China has always maintained a retreat. As the USSR once did, having in circulation an internal ruble and a foreign currency. This practice saves the domestic market from all kinds of sanctions and other troubles associated with conflicts of sovereignty.

The artificially low price of their domestic money attracts orders from external investors. This is a common practice for all currency units.

Presumably, the Russian Federation does not conduct a balance policy in this regard. The ruble is too subject to external influence.

[Aristide]

If you want, you don’t want, but China has proved to everyone that he is an economic winner.

[faterdom]

Aha, the yuan will sit in the 11% allocated to it by someone clever !!! One of the reasons for the downright artificial depreciation of the yuan at the end of last year and the beginning of this year under the direct and wise leadership of the CPC Central Committee (here it is - the "invisible hand of the market")), in addition to maintaining the competitiveness of Chinese exports, was that a margin of safety was thus created this monetary unit.
That is, the same CCP can, for a couple of years, add a cent per day against the dollar, regardless of oil prices, Soros's scams and Fed reports with vague promises to "raise the refinancing rate." And then no one can convince even an American patriotic business man that the dollar is better or more reliable than the yuan. Not to mention the other currencies in the basket.