Fri, Dec 15, 2017
A A A
Welcome Guest
Free Trial RSS
Get FREE trial access to our award winning publications
Alternative Market Briefing

Stratton Street predicts China and Australia currency link will be first of many

Thursday, May 16, 2013

amb
Andy Seaman
By Beverly Chandler, Opalesque London:

May saw China and Australia agree a deal to directly trade the Australian dollar and the renminbi. Andy Seaman, Partner and Portfolio Manager, Stratton Street, explains that this means that rather than foreign exchange between the two countries going via US dollars, the currencies can be directly converted, something that previously was only possible with the renminbi and the yen. The Reserve Bank of Australia, Australia’s central bank, is the first to sign up and has put 5% of its foreign exchange reserves into the renminbi.

Seaman explains that this might have come as a surprise to people in the markets here but other central banks are queuing up to do just the same. "This is a trend that will continue" he says, with the Banque de France and the Bank of England also keenly creating links with China, albeit constrained on what they can do with their foreign exchange reserves.

"The renminbi has come from nowhere" Seaman explains but by 2015 it is predicted to have a trading volume of $1tln a day and be standing at number three in the world’s most actively traded currencies. Globally, 12% of China's trade is now settled in renminbi. "If recent initiatives are able to boost trade in renminbi to match either the current - 12% - level of trade settled in renminbi seen other parts of the world, or approach the one third level within a few years, then ......................

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. Mediobanca acquires majority stakes in Swiss hedge fund[more]

    Komfie Manalo, Opalesque Asia: Listed diversified banking group Mediobanca SpA said it has acquired a majority stake in Geneva-based hedge fund firm RAM Active Investments SA (RAM AI), an active and alternative asset manager offering a range of act

  2. Launches - Ex-BlueCrest team to open over $200m hedge fund, Greg Coffey, a hedge fund star who retired at 41, is eyeing a comeback, Brevan Howard plans Greek funds as bond rally signals revival[more]

    Ex-BlueCrest team to open over $200m hedge fund From Bloomberg.com: A team of traders who left BlueCrest Capital Management earlier this year raised more than $200 million for their own hedge fund focused on Asian stocks, according to a person familiar with the matter. Ovata Capital Manag

  3. North America - Miami could attract hedge funds if SALT deductions axed[more]

    From Law360.com: For years, inertia has been Nitin Motwani's greatest foe in his attempts to lure hedge fund owners in the northeast to Miami, which he has pitched as a tropical low-tax paradise. But with the Republican tax bill proposing to eliminate deductions for state and local taxes, he's sensi

  4. Northleaf Capital Partners closes debut private credit fund on $670M[more]

    Bailey McCann, Opalesque New York: Northleaf Capital Partners has closed its debut private credit fund - Northleaf Private Credit I - on $670 million. The vehicle will invest in private credit transactions in Europe and North America, with a primary focus on lending to private equity-backed compa

  5. ...And Finally - The ongoing gun saga in the U.S.[more]

    From Newsoftheweird.com: As elder members of the First United Methodist Church in Tellico Plains, Tennessee, gathered on Nov. 16 to discuss the recent church shooting in Sutherland Springs, Texas, one of those present asked if anyone had brought a gun to church. One man spoke up and said he c