Despite China’s economic power, the yuan lags as a major global currency. Here’s why current US interest rates and sanctions on Russia may change that.
Central banks are now taking digital currencies seriously, and the EU is exploring the idea. While an “e-euro” could increase monetary security and stability, the venture is not without risks.
The agreement marks a key milestone in strengthening bilateral financial cooperation between the world’s largest exporter, China, and Southeast Asia’s largest economy, Indonesia.
Most countries manipulate their currencies – at least a little – but at the moment that’s not the real reason they are undervalued relative to the dollar.
Chinese real estate investors might be more interested in investing in their homeland rather than Australia, given the changing market and regulations.
China has introduced new currency and investment controls after foreign exchange reserves hit the lowest level since 2011. This could have a profound impact on our trading relationship.
China’s interventions to cheapen its currency relative to others will hurt US imports in the short term, but the country’s surging “mainstream” will easily offset the impact.
The US may not like it, but by devaluing the yuan the People’s Bank of China has done what longtime critics of China’s currency policy have long been clamouring for.
Whatever China’s policymakers do these days matters a lot, and not just to the denizens of the People’s Republic. On the contrary, for better or worse what happens in China has a powerful and often immediate…