Chinese Economics Thread

[janjak desalin]

IMF gives China's currency prized reserve asset status

Great news! ​

It's now included in the SDR. Anyone know at which weight? I'm gon'na check! 10.92 %! Right behind GBP!

Not that anybody cares, but these were my recommendations/projections for the evolution of the SDR, made in 2009 (and, based on 2008 figures). My criteria for inclusion was ~ >1%, of world GDP. Talk about democratization!!! Beware, it's long!

RECOMMENDED CURRENCIES COMPRISING 2011-2015 SDR BASKET EXPANSION
Based on World Bank 2008 estimate: WORLD GDP = $60, 115, 459, 000, 000
(BASKET GDP) 43, 805, 151/ (WORLD GDP) 60, 115, 459 = 0.729
CURRENCY % BASKET CONTINENT/REGION
1. USD 0.3242 NORTH AMERICA
2. EUR 0.3096 EUROPE
3. JPY 0.1120 ASIA
4. CNY 0.0881 ASIA
5. GBP 0.0603 EUROPE
6. BRL 0.0368 SOUTH AMERICA
7. RUB 0.0367 EURASIA
8. CAD 0.0319 NORTH AMERICA

RECOMMENDED CURRENCIES COMPRISING 2016-2020 SDR BASKET EXPANSION
Based on World Bank 2008 estimate: WORLD GDP = $60, 115, 459, 000, 000
(BASKET GDP) 48, 052, 930 / (WORLD GDP) 60, 115, 459 = 0.799
CURRENCY % BASKET CONTINENT/REGION
1. USD 0.2955 NORTH AMERICA
2. EUR 0.2823 EUROPE
3. JPY 0.1021 ASIA
4. CNY 0.0803 ASIA
5. GBP 0.0550 EUROPE
6. BRL 0.0335 SOUTH AMERICA
7. RUB 0.0334 EURASIA
8. CAD 0.0291 NORTH AMERICA
9. INR 0.0253 ASIA
10. MXN 0.0225 NORTH AMERICA
11. AUD 0.0211 OCEANIA
12. KRW 0.0193 ASIA

RECOMMENDED CURRENCIES COMPRISING 2021-2025 SDR BASKET EXPANSION
Based on World Bank 2008 estimate: WORLD GDP = $60, 115, 459, 000, 000
(BASKET GDP) 50, 376, 983 / (WORLD GDP) 60, 115, 459 = 0.838
CURRENCY % BASKET CONTINENT/REGION
1. USD 0.2819 NORTH AMERICA
2. EUR 0.2692 EUROPE
3. JPY 0.0974 ASIA
4. CNY 0.0766 ASIA
5. GBP 0.0525 EURPOE
6. BRL 0.0320 SOUTH AMERICA
7. RUB 0.0319 EURASIA
8. CAD 0.0277 NORTH AMERICA
9. INR 0.0241 ASIA
10. MXN 0.0215 NORTH AMERICA
11. AUD 0.0201 OCEANIA
12. KRW 0.0184 ASIA
13. TRY* 0.0157 EURASIA
14. PLN* 0.0104 EUROPE
15. IDR 0.0102 ASIA
16. CHF 0.0096 EUROPE

* Might have adopted EUR by this time.

Sorry for the formatting. It doesn't look like this when I save it.

 

[Equation]

“This decision does nothing but validate China’s history of cheating on its currency,” said Sen. Bob Casey (D., Pa.). Sen. Charles Schumer, (D., N.Y.), said “the IMF is choosing to reward China’s currency manipulation instead of combating it.”

I guess the Senator Casey forgot that QE counts as currency manipulating as well.

 

[janjak desalin]

Great news! ​

It's now included in the SDR. Anyone know at which weight? I'm gon'na check! 10.92 %! Right behind GBP![/QUOTE]
Aha! It' be 3rd, behind the EUR. The GBP and JPY will be, weighted at 8.0%!

 

[janjak desalin]

I guess the Senator Casey forgot that QE counts as currency manipulating as well.

LOL!!!
There are many means of currency manipulation!

 

[janjak desalin]

On second thought, I don't know why I'm congratulating. The SDR is the one world currency the advent of which we all fear.

​

 

[mr.bean]

LOL!!!
There are many means of currency manipulation!

When you see American Senators taking cheap shots at China, then you know China is doing something right!

 

[mr.bean]

IMF gives China's currency prized reserve asset status

• This is a very important victory for China against American anti China policy. It means the Europeans see the situation and decide on a pragmatic approach and prefer to work with China as a constructive partner. No wonder Xi jinping is at Paris right now for the UN Climate talks, he's meeting with the IMF managing director on the sidelines. 3 recent important events lead me to the thought that the Euros are pursuing a totally opposite policy than the anti China, US/Japan positions. First is the AIIB where all the major European powers choose to join while the US/Japan chose sabotage and boycott. Second, China is allowed to join the European Reconstruction Bank thus signalling the European financial community's acceptance of China as a important and constructive partner. Third is this great news today that the IMF added the Yuan as a SDR currency. This is a milestone for China, no wonder Xi jinping was grinning like a yorkshire cat on tv news.

 

[SamuraiBlue]

Aughh, IMF was founded by the US and the two main contributors are the USA and Japan.
IMF headquarters is in Washington DC for your information.

 

[janjak desalin]

• [...] This is a milestone for China, no wonder Xi jinping was grinning like a yorkshire cat on tv news.

That's the Cheshire Cat, my friend.

The Cheshire Cat!​

 

[mr.bean]

Aughh, IMF was founded by the US and the two main contributors are the USA and Japan.
IMF headquarters is in Washington DC for your information.

it's a quid pro quo where these policy banks are pretty much divided up where the Euros run the IMF hence a Euro is always the managing director, the american's run the world bank, the ADB is run by the japanese and of course they all hold shares in each other. This is the status quo and that's why there is a difference i see the Euros wanting to work with the Chinese and the US/Japan sees this as a threat to their dominance. China's the new player in the global heavyweight economic club, some old members of this club see a good chance to collaborate/cooperate and some see it as a threat to their comfortable status quo and wish to contain the new guy.