IMF announces inclusion of the Chinese Renminbi to the SDR basket. There will be a new forex dynamic as funds re-allocate their foreign reserves.
PBOC’s Yuan devaluation is 2 years late. Despite big hooha, PBOC has maintained a very stable exchange rate with the greenback. Biggest culprit is Japan.
Headlines and chart of USDCNH following PBOC’s move to devalue Yuan by moving it’s daily fix by 1.9%. PBOC is selling this move as a one-time move only.
Look at USDHKD test its 7.75 limit, intervention by HKMA at this level in the past and some reasons why long term investors are keen to bet.
Renminbi as reserve currency; highest against US Dollar in 20 years I wrote this article “Debutante Chinese Renminbi has a special date with year 2015“. In my opinion, the Chinese currency is moving towards reserve currency status. So while our attention was captured by politicking in