You need to understand the key influence--three Chinese Yuan into foreign media blue SDR
United States NBC business channel (CNBC) raised three questions, for the Yuan eventually into basket, preheat the probability of the event:
why the Yuan into the blue is significant?
Australia-New Zealand Bank (ANZ) said Raymond Yeung, Senior Economist, Yuan into a basket of potential opportunity is the SDR basket of the most important changes since 1999, when the euro was just born.
If the renminbi into the basket, you will officially become a global reserve currency.
Central Bank foreign exchange reserves to buy their own money or pay down foreign debt, Yuan joined basket means that tend to increase the euro or dollar reserves national authorities have more choices. For many emerging economies, was trading close to national reserve number can be used to reflect a deepening relationship.
Yeung said that in the end, monetary authorities in the years of reform in China, the Renminbi has been found to be able to meet the "convertible" standard, and convertibility through the IMF's big test. China is also taking further action to conduct more open and market-oriented economic environment, same time policy makers will join key part of SDR basket described as in transition.
Yuan surge in demand will do?
at least not in the short term. Even though IMF policymakers tonight "approved into the basket" currency before September 2016 will not be added to the SDR, the IMF Committee plenty of time to make adjustments to currency changes in the composition of the basket.
Bank of America Merrill Lynch (Bank of America Merrill Lynch) Claudio Piron, and Adarsh Sinha expected IMF SDR constitute adjustments would give the currency's share of the $ 35 billion, which is not very large for the size of China's economy figures.
long-term effects I'm afraid but into the basket is very in-depth.
Claudio Piron, and Adarsh Sinha believes that banks already holding 80 billion dollars ' worth of currency reserves, with the pound and the Renminbi obtained similar estimates of the share of the yen, Yuan demand additional value could reach $ 370 billion. Analysts at Bank of America Merrill Lynch pointed out that such changes require at least 3 years to achieve.
Nevertheless, key Yuan as reserve currency are still rising, China's bond market may become more and more international, according to the Bank of America Merrill Lynch says, China's bond market is the world's third-largest debt market, but foreign holdings only 3%. As more and more countries set up currency reserves, and this figure continues to rise, due to risk aversion is one of the most favored Central Bank reserve managers of assets in government bonds.
according to its Asian neighbors in similar circumstances in the bond market, the Bank expects outstanding bond holdings in foreign investment will rise to 20%