Sat, Jun 24, 2017
A A A
Welcome Guest
Free Trial RSS
Get FREE trial access to our award winning publications
Alternative Market Briefing

Other Voices: Internationalization of the renminbi is inevitable but will take time

Monday, August 08, 2011

By Dr Yang Tao, chief economist at the publication, China’s Economy & Policy, and director general of research base for industrial finance at the Chinese Academy of Social Sciences.

In the 1960s, as a consequence of the sterling crisis, US monetary policy and the cold war, a large amount of US dollar assets moved into European banks. This confluence of factors helped establish the offshore market for US dollars known as the Eurodollar market. Centred in London, this huge market propelled London to the position of the world’s leading financial centre, and it also had a profound impact on maintaining the special status of the US dollar in the international monetary system.

The emergence of the US dollar offshore market in London also laid the foundation for subsequent financial liberalization and innovation. On the surface, its formation seems to have been a smart choice for the European and American banking giants; in fact, it was also a reflection of national policy in the US and Western Europe, especially with respect to changes in the attitude towards capital controls at home and abroad.

Half a century later, in the wake of the financial crisis of 2008, the financial vitality of both Wall Street and London has suffered a heavy blow, and international investors have been left feeling helpless about the weak US dollar and dissatisfied with the established international monetary system. In this context, the recovery of the Chinese economy has received a great......................

To view our full article Click here

Today's Exclusives Today's Other Voices More Exclusives
Previous Opalesque Exclusives                                  
More Other Voices
Previous Other Voices                                               
Access Alternative Market Briefing

 



  • Top Forwarded
  • Top Tracked
  • Top Searched
  1. Legal - Bond market concerns could scuttle Paulson's Fannie-Freddie plan[more]

    From Bloomberg.com: A hedge fund proposal for freeing Fannie Mae and Freddie Mac from U.S. control is poised to face stiff opposition from investors who say it risks wrecking the mortgage-bond market. The Moelis & Co. blueprint, which firms including Paulson & Co. and Blackstone Group LP sponsored,

  2. Other Voices: Are your pricing policies and procedures for less liquid instruments adequate?[more]

    Komfie Manalo, Opalesque Asia: The unrelated position mismarking incidents that quickly precipitated the closures of both Visium Asset Management and Marinus Capital have been recent focal points for market participants, but regulatory scrutiny of valuation choices for less liquid instruments is

  3. FinTech - AI hedge fund Numerai now live on Ethereum, Cryptocurrency hedge funds generate huge returns as bitcoin surges[more]

    AI hedge fund Numerai now live on Ethereum From Cryptoninjas.net: Back in February, Numerai announced numeraire (NMR), a cryptographic token to incentivize a new kind of hedge fund built by a network of data scientists. Earlier today, the Numeraire smart contract was officially deployed

  4. Investing - Advisors slash hedge fund positions, Theravance Biopharma is a top pick of investment guru Seth Klarman, As asset management industry grows a search for new revenue streams[more]

    Advisors slash hedge fund positions From Barrons.com: Financial advisors have cut wealthy clients' exposure to hedge funds by up to one third over the past 12 months, The Financial Times reports. Advisor firms in the FT's annual top-300 ranking have reduced their hedge fund allocation to

  5. Barclay Hedge Fund index gains 0.50% in May, 4.13% YTD[more]

    Hedge funds gained 0.50% in May according to the Barclay Hedge Fund Index compiled by BarclayHedge. The Index is up 4.13% in 2017. The Barclay Hedge Fund Index has now been profitable for seven months in a row, with a cumulative gain of 6.10%. The Barclay Technology Index has gained 12.27% in the fi