Thu, Dec 25, 2014
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. Hong Kong-Shanghai stock link fails to live up to expectation so far[more]

    Komfie Manalo, Opalesque Asia: In a report, Reuters said that demand has been subdued with the bulk of activities coming from short-term speculative investors. Las

  2. Investing - Hedge funds get boost from healthcare in 2014, Paulson & Co takes stake in Salix on heels of inventory issues[more]

    Hedge funds get boost from healthcare in 2014 From Valuewalk.com: The healthcare sector started the year on a turbulent note, as stocks of many major biotechnology companies were battered. However, most of the players in this sector have bounced back. The BarclayHedge Healthcare & Biotec

  3. North America - Why Steve Cohen, Connecticut hedge fund billionaire, gives so much in New York[more]

    From Insidephilantrophy.com: Billionaire Steve Cohen was born in Great Neck, New York before attending Wharton, working on Wall Street and then founding SAC Capital Advisors in Connecticut. Though his company (Point72) and foundation are based in Connecticut, Cohen and Alexandra are deeply connected

  4. Investing - Soros buys a highly speculative biotech in the third quarter[more]

    From Fool.com: …The Soros Fund bought 25,000 shares of the struggling small-cap biopharma Aegerion Pharmaceuticals in the third quarter. For those of you who haven't heard of this name, suffice to say that this was a surprising buy in light of the company's recent problems and poor outlook going for

  5. CFTC Revokes Registrations of Illinois Resident Aleks A. Kins and Chicago-based AlphaMetrix, LLC[more]

    Matthias Knab, Opalesque: The U.S. Commodity Futures Trading Commission (CFTC) today announced that it has revoked the registration of Aleks A. Kins of Chicago, Illinois, as an Associated Person and the registrations of AlphaMetrix, LLC (AlphaMetrix), a Delaware limited liability company with its