China Joins World’s Elite Currency Club
From the Wall Street Journal by IAN TALLEY
The parts I find interesting.
From the Wall Street Journal by IAN TALLEY
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China notched an economic milestone Monday, with the International Monetary Fund adding the yuan to its elite basket of reserve currencies, a move designed to spur greater liberalization in the world’s No. 2 economy. |
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And for the Chinese, the yuan’s higher status is part of a larger strategy to boost the country’s economic leverage. The government has ramped up lending to foreign governments, greatly expanded trade settled in yuan and created emergency credit facilities for other governments. Earlier this year, it launched the Asian Infrastructure Investment Bank, an institution analysts say was designed in part to rival the Washington-based World Bank. ... Some fund watchers also say that support in the international community for the move is partly political consolation for the failure of the IMF to overhaul the lending institution’s governance structure to give China and other emerging-market nations more of a vote in line with their evolving economic heft in the world. The decision by U.S. lawmakers to repeatedly reject ratification of a governance deal is a sore point for China and other developing powers. They say that snub by the shareholder-run IMF is prompting them to create their own international economic institutions. |
China Joins World’s Elite Currency Club