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Asian economies turn to yuan
mrearlygold
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Asian economies turn to yuan
A "renminbi bloc" has been formed in East Asia, as nations in the region abandon the US dollar and peg their currency to the Chinese yuan — a major signal of China's successful bid to internationalize its currency, a research report has said.
The Peterson Institute for International Economics, or PIIE, said in its latest research that China has moved closer to its long-term goal for the renminbi to become a global reserve currency.
Since the global financial crisis, the report said, more and more nations, especially emerging economies, see the yuan as the main reference currency when setting their exchange rate.
And now seven out of 10 economies in the region — including South Korea, Indonesia, Malaysia, Singapore and Thailand — track the renminbi more closely than they do the US dollar. Only three economies in the group — Hong Kong, Vietnam, and Mongolia — still have currencies following the dollar more closely than the renminbi, said the report, posted on the institute's website.
The South Korean won, for example, has appreciated in sync with the renminbi against the dollar since mid-2010.
China has long vowed to raise its currency's global sway, along with the rise of its economy, which became the world's second-biggest last year.
Continued in China Daily
A "renminbi bloc" has been formed in East Asia, as nations in the region abandon the US dollar and peg their currency to the Chinese yuan — a major signal of China's successful bid to internationalize its currency, a research report has said.
The Peterson Institute for International Economics, or PIIE, said in its latest research that China has moved closer to its long-term goal for the renminbi to become a global reserve currency.
Since the global financial crisis, the report said, more and more nations, especially emerging economies, see the yuan as the main reference currency when setting their exchange rate.
And now seven out of 10 economies in the region — including South Korea, Indonesia, Malaysia, Singapore and Thailand — track the renminbi more closely than they do the US dollar. Only three economies in the group — Hong Kong, Vietnam, and Mongolia — still have currencies following the dollar more closely than the renminbi, said the report, posted on the institute's website.
The South Korean won, for example, has appreciated in sync with the renminbi against the dollar since mid-2010.
China has long vowed to raise its currency's global sway, along with the rise of its economy, which became the world's second-biggest last year.
Continued in China Daily
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Comments
Mongolia - ex-China and no love there.
China? Dollar pegged for now.
Give Me Liberty or Give Me Debt
<< <i>The petrodollar is toast. World currency leader is up for grabs. Yuan is leading the pack. >>
no it isn't, no it isn't, and no it isn't.
everyone has an opinion, ain't America great?
Liberty: Parent of Science & Industry
Give Me Liberty or Give Me Debt
I wish the Yuan good luck. Maybe those guys should remember to take care of 400 million of their citizens who live on $1 a day or hundreds of millions who have never seen a doctor.
When a Chinese part of an American city starts taking and demanding Yuans, I'll rethink my position.
<< <i>I can't think of any other currency I'd rather have in my billfold than good ol green benji's when I'm in 99% of the countries around the world. The only other item I would consider would possibly be small gold coins.
I wish the Yuan good luck. Maybe those guys should remember to take care of 400 million of their citizens who live on $1 a day or hundreds of millions who have never seen a doctor.
When a Chinese part of an American city starts taking and demanding Yuans, I'll rethink my position. >>
It seems that economics has merged with politics sometime in the last decade or so, and it seems that patriotism is being confused with policy as well. I believe that Orwell called it "groupthink".
I knew it would happen.
<< <i>
<< <i>The petrodollar is toast. World currency leader is up for grabs. Yuan is leading the pack. >>
no it isn't, no it isn't, and no it isn't.
everyone has an opinion, ain't America great?
OK, whatever you say:
Give Me Liberty or Give Me Debt
It would certainly make sense for the yuan to assume a more prominant role, since China's economy is getting close that that of the US in size, and many countries now have more trade with China than they do with the United States.
None of this particularly worries me -- in fact, to some extent, owning the reserve currency is a curse a bit like having fantastic oil wealth -- it leads to bad habits. Even though the American cunsumption has benefitted by a couple of percentage points of GDP annually for the past 50 years, we would arguably have been better off if we had saved rather than borrowed or spent.
<< <i>One of my customers travels all over the world including asia and outskirts, he does physician work to help out communities and such. He tells me he knows that the US $ buying power has slid a great deal over the past several years, but when you come right down to it, people in other countries flat out want US $ as currency more than any other currency traded period!!!!! >>
I live overseas half of the year mostly in Asia and I unequivocally disagree with this. During the 2008 crisis I couldn't use the US dollar in China or India for a several month period. The Japanese Yen, Canadian dollar (best banks in the world) and the Swiss Franc all enjoy equal or more favored status over the dollar IMO. I would have put the Swiss Franc way ahead of the dollar but it's been capped by the Euro. if not for that the Swiss Franc would be the strongest currency on the planet by a mile. The Swiss have successfully suppressed it for the time being.
As for the RMB/Yuan the Chinese have a history of corruption in their banking system even more so then the US. As much as the world depends on the Chinese economy I don't trust the Yuan. What does give the Yuan some substainibility is that China's largest trading partner, the European Union relies heavily on Beijing. On top of that if you add up all the trades other South Eastern Asian countries do together as a block with China it's more then what the US has going with them.
The best claim the dollar can make is liquidity. There is an unlimited supply of it.
MJ
Fellas, leave the tight pants to the ladies. If I can count the coins in your pockets you better use them to call a tailor. Stay thirsty my friends......
Yup. It WILL be a good thing for the US dollar to compete.
It will not be the end of the world. It will not be the end of the "US Standard of living", it will not be the end of US domination of the seas, skies and space.
Knowledge is the enemy of fear
<< <i>owning the reserve currency is a curse
Yup. It WILL be a good thing for the US dollar to compete.
It will not be the end of the world. It will not be the end of the "US Standard of living", it will not be the end of US domination of the seas, skies and space. >>
I can give you an Amen on that Brother Dave
MJ
Fellas, leave the tight pants to the ladies. If I can count the coins in your pockets you better use them to call a tailor. Stay thirsty my friends......
<< <i>....
Maybe those guys should remember to take care of 400 million of their citizens who live on $1 a day or hundreds of millions who have never seen a doctor.
When a Chinese part of an American city starts taking and demanding Yuans, I'll rethink my position. >>
the average income in the PRC is $5K per year.
Medical services are and have been since the revolution, completely free.
You need an education, bignose.
<< <i>owning the reserve currency is a curse
Yup. It WILL be a good thing for the US dollar to compete.
It will not be the end of the world. It will not be the end of the "US Standard of living", it will not be the end of US domination of the seas, skies and space. >>
only history will tell us if it was the beginning of the end. Current history demonstrates a downward standard of living spiral with debasement of the currency. Most recently, Zimbabwe with 80% unemployment rate.
Give Me Liberty or Give Me Debt
<< <i>
lmao, thats a good one
<< <i>Medical services are and have been since the revolution, completely free. >>
That's false.
They are not free, and the health care received in China is rated among the worst world wide.