The yuan to the dollar offsets for the throne of the world's currencies

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Exceeded 7 international currencies in 3 years as a currency for payment 

The yuan to the dollar offsets for the throne of the world's currencies

• Dubai Abdul Rahim term

Date:  December 12, 2015

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Saw world currencies Finally an important turning point was the acquisition of the yuan, the national currency of China, increasingly important in the international monetary system, after the announcement of the International Monetary Fund added the Chinese currency, the yuan to a basket of currencies cash reserve by the Fund used as a standard of value, the scene is in the currency market more balanced. .

At the same time become one of the most common concerns among economists that such a step contributing to the decline in the global economy in the short term, where the yuan joined the Special Drawing Rights of the International Monetary Fund ..

Known for short as SDR and was founded in 1969 and allows under which the Member States draw them to balance of payments, and those rights were always exclusively on the four international currencies are the US dollar, the European euro British pound and the Japanese yen and the pound.

Observers believe that the yuan, which is the functional currency's second-largest economy in the world, now has a chance to compete for the throne of the world's currencies, which occupied the US dollar, at the expense of some 300 currencies in the world, it has been growing in importance in the future, so it might ****** the throne from the US dollar.While the view of many analysts.

Especially after the currency of the Red Dragon was able to overcome the seven currencies over the past three years as the currency of payment and now comes after the US dollar and the euro and the pound sterling, surpassing the Japanese yen.

The official announcement

The International Monetary Fund announced last week that the Chinese yuan will include a basket of currencies of the Fund's global reserves, and include basketball at the moment the US dollar, euro, Japanese yen, and the pound sterling, and the IMF said that «the yuan is available with all existing standards, and should be It turns into a component of the basket of currencies the world's reserves by October 2016 »..

She described Christine Lagarde, head of the International Monetary Fund, such a move as a hallmark in the way of what we achieved from the integration of the Chinese economy in the global financial system. She added that such a move as «recognition of the progress made by the Chinese authorities over the past years in the reform of the monetary and financial systems» ..

She added: «The inclusion of the yuan to the SDR basket represents« an important milestone in the integration of the Chinese economy in the global financial system. »

It is scheduled that the Chinese yuan is a unit components SDR «(SDR), which is the origin of a reliable fund in his dealings instead of currency, used unit SDR in dealings between the central banks and the International Monetary Fund to determine the currency that you need a country like Greece, for example, when the Fund agrees to grant financial assistance.

Views

For his part, said Nicholas Lardy, a senior researcher at the Peterson Institute for International Economics in Washington, told Xinhua that the inclusion of the yuan reflects recognition LED Monetary Fund and the weight of China in the global economy, adding that «this is the right time to bring the yuan into the SDR basket under used widely While China become the world's largest economy in the world and the second largest trading nation. »

Lardy said that «China has made tremendous efforts to address the shortcomings that have increased the possibility of including the yuan significantly».

Said Meg to Ondsagr, US Executive Director of the International Monetary Fund, it is important that this step has shown that is possible to evaluate the system, has already reflected taken by China in the past years. She added to Ondsagr, currently a senior researcher Wilson Center in Washington, «it is clear that China is moving on the path of reform.

They want to show that the yuan trading at a large scale and is used freely as defined by the International Monetary Fund. »

According to observers, the yuan has become an opportunity to compete for the throne of the world's currencies, which occupied the US dollar, at the expense of some 300 currencies in the world, the dollar is still the reference currency for the global economy. While experts assumed that the Chinese yuan, which is the currency of the second largest economy in the world, has been growing in importance in the future, so it might ****** the throne from the US dollar.

The last change occurred in the unit SDR in 2000 when it replaced the European single currency (euro) replaced the German mark and the French franc ..

China and occupies second place among the world's largest economy after the United States, which last year filed a request to have the yuan currency cash reserve. Analysts likely that by 2030 the yuan will apply for first place among the most important global currency, bypassing the dollar and the euro.

Swift

So remittance services around the world organization (Swift) that the yuan China has become in August, the fourth between the currencies of Global Payments most used, surpassing the Japanese yen, exceeding the yuan seven currencies over the past three years as the currency of payment and now comes after the US dollar, the European euro and the pound.

According to Swift, the total value of global payments in yuan rose 9.13% in August, while payments declined in various other currencies 8.3%, and reached the yuan to a record share high in the market stood at 2.79% in the global payments for that month, compared with 1.34% in January 2014.

And it used more than 100 countries yuan payments in August were concentrated more than 90% of the value flows in ten countries, and carried out more than 1,700 financial institution payments around the world in yuan, up 14 percent from August of last year, according to Reuters.

In the trade finance sector's share of the yuan of 9.1 percent hit from the global release of credit letters in terms of value enhanced its position as the second most currencies commonly used for this purpose, said Swift that foreign exchange transactions in yuan terms of value also increased by 20% in August from the previous month ..

The most likely is due to the establishment of the People's Bank of China (the central bank) to reduce the value of the yuan. More than 50 percent and was conducted from foreign exchange transactions in yuan outside China and Hong Kong with the United Kingdom followed by the United States, Singapore and France.