At the dawn of 2016, a new international nancial architecture is emerging with the advent of the Chinese Renminbi
as the third global currency alongside the euro and the dollar.
The value of the SDR will be based on a weighted average of the values of the basket of currencies comprising the US dollar, euro, the Chinese renminbi
, Japanese yen, and British pound.
Set up a direct trading exchange market between the Korean won and the Chinese renminbi
(RMB) in the China Foreign Exchange Trade System (CFETS)
Analysts say one possible cause of the decline is that emerging market currencies have been under pressure this week, in the wake of the devaluation of Chinese renminbi
YESTERDAY marked a second straight day of losses for the FTSE 100 Index as UK investors awoke to further weakness in China's currency when the Chinese Renminbi
hit a four-year low.
In EMs, currencies which are linked to the US dollar, such as the Chinese Renminbi
, have also appreciated against other currencies.
Editors Eichengreen and Kawai present readers with a collection of academic essays and articles investigating the arguable rise to prominence of the Chinese renminbi
as the next global currency following the global financial meltdown of 2008.
Direct trading between the Japanese yen and the Chinese renminbi
in interbank foreign exchange markets began simultaneously in Japan and China on June 1 2012.
Singapore's ambition to become a global trading hub for the Chinese renminbi
has made significant progress, and the July 1 launch of a facility to provide overnight RMB liquidity to financial institutions in Singapore will help bolster market confidence that funding needs will be met, UOB says.
A fall in the two main fine wine indices in September, for example, was put down to a sharp rise in sterling; up four per cent against the Chinese renminbi
, Japanese yen and US dollar and two per cent against the euro.
This transformation has large implications for the global economy, including a prominent role for the Chinese Renminbi
as an international currency going forward.
5%, the Chinese Renminbi
, or Yuan, is the ninth most traded currency in the world and constitutes 2.