Author: jimmy67

Are Asian central banks using RMB as reserves now? [Copy link] 中文

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Post time 2007-10-22 22:56:22 |Display all floors

WHAT JIM ROGERS SAID

Rogers sees yuan becoming reserve currency

BLOOMBERG
Friday, Apr 21, 2006, Page 11

"If there's a currency that has the potential to replace the dollar, the only one I can see on the horizon is the renminbi."

Jim Rodgers, investor
Jim Rogers, who joined George Soros to start the Quantum hedge fund in the 1970s, said the Chinese yuan may overtake the US dollar as the most accepted currency among the world's central banks.

The yuan may surge in years ahead and the US dollar will fall, Rogers said.

"If there's a currency that has the potential to replace the dollar, the only one I can see on the horizon is the renminbi," Rogers, 63, said in an interview in Singapore on Monday. "The renminbi's going to go much, much higher," he said, declining to give a forecast.

It may take decades for China to achieve reserve status for a currency that it doesn't yet allow to be held outside of the country. The US dollar made up 66 percent of world official foreign currency holdings in 2004, according to the IMF. China ended its decade-old US dollar peg last July.

The yuan closed at 8.0127 against the dollar as of 3:30pm in Shanghai yesterday from 8.0137 on Wednesday. The Chinese currency on Wednesday had its biggest gain against the US dollar since last July's revaluation.

Exchange-based trading in the yuan ends at 3:30pm, while direct dealing between banks continues for two hours. The yuan closed at 8.0115 at 5:30pm, according to the Web site of the China Foreign Exchange Trade System in Shanghai.

Rogers wrote about his travels across China and the rest of the world in the books Investment Biker and Adventure Capitalist.

The New York-based investor said he's on the road again -- to Singapore, Hong Kong, Taiwan and Japan -- to help UBS AG market commodities in Asia.

"The US dollar is in the process of losing its status as the world's reserve currency," Rogers said. "The US dollar's going to go down a lot in the next decade or so."
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Post time 2007-10-23 01:00:47 |Display all floors
the message is removed as required by msaeed.

[ Last edited by tamahome at 2008-2-27 02:07 PM ]

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Post time 2007-10-27 06:15:12 |Display all floors
Originally posted by kelly888 at 2007-10-21 20:19

Okay, you know what you're talking about.
The RMB is a non-convertable currency, wake up your dream is over.



just like what said, RMB is semi-convertible. in the united states of america,  RMB can be purchased from EVERBANK (http://www.everbank.com).

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Post time 2007-11-8 10:30:22 |Display all floors

Latest report: Dollar dives after China's hint

Dollar dives after China's hint on diversifying reserves

(AP_)

The dollar tumbled Wednesday to a fresh low against the euro after China reportedly indicated it might diversify its massive foreign exchange reserves away from the US currency.

The euro barreled through the 1.46-dollar and 1.47-dollar levels for the first time, climbing as high as 1.4731 dollars.

The 13-nation currency eased back to 1.4634 dollars around 2200 GMT, up from 1.4555 late Tuesday.

The dollar slid against the Japanese currency to 112.55 yen, down sharply from 114.72 Tuesday.

The US currency hit a 26-year low against the British pound at 2.1072 dollars and a record low of 0.9091 Canadian dollars.

Meanwhile, the price of gold also jumped higher in early trade London trade, hitting 845.84 dollars an ounce, close to its all-time peak of 850 dollars set in January 1980.

The beleaguered greenback, already under pressure from fears of a US recession and expectations of a further cut in interest rates, had further weakened after comments made by the vice chairman of China's national parliament, analysts said.

Cheng Siwei reportedly said at a conference in China that his country should adjust the structure of its foreign exchange reserves, the world's largest, suggesting that strong currencies ought to be given greater weight.

"This comment, although more confusing than anything else and only presented by a third-tier Chinese official, caused the dollar to sell-off," said analysts at BNP Paribas.

China's foreign exchange reserves reached a record 1.43 trillion dollars in September, and 70 percent of them are dollars, experts say.

"This is the clarion call for all currency reserve managers around the world that the largest holder of US dollars outside the country is seriously thinking of selling them for other currencies," said Andrew Busch at BMO Capital Markets.

Busch, pointing to the tight global credit, said "the only central bank acting to soften the credit blow is the US Federal Reserve as this country remains the epicenter for the problem. Thus, the US dollar comes under pressure and subject to a potential exogenous shock ... like a shift in reserve management."

Market expectations are rising for a further rate cut when the Fed meets on December 11 because of an expected sharp economic slowdown due to a deepening housing slump and a subsequent crisis in the high-risk subprime mortgage sector.

"The market is still quite concerned about the fallout from the subprime mortgage crisis, so a lot of people are anticipating further rate cuts by the Fed," said Daniel Chan, senior investment strategist at DBS Bank.

The Fed last week cut its base federal funds rate by a quarter-point to 4.50 percent to ease tight credit stemming from the housing downturn.

The Reserve Bank of Australia on Wednesday raised its benchmark rate by 25 basis points to 6.75 percent, increasing the currency's yield advantage.

"The dollar was weaker ... as investors focused on diminishing yields on offer in the US as the Fed needs to keep cutting interest rates in response to the subprime fallout," noted NAB Capital strategist John Kyriakopoulos.

In late New York trade, the dollar was at 1.1334 Swiss francs, down from 1.1447 late Tuesday.

The pound was at 2.1012 dollars, up from 2.0874.

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Post time 2007-11-8 10:42:19 |Display all floors
as I have predicted that Euro vs US Dollar will climb to 1.5 : 1 within two months.  

seems now that could arrive much sooner.

Now many economists in China suggest or recommend that U.S. Federal Reserve had better not to cut its benchmarket interest rate, again.   Any such move in December will send the greenback on a quicking pace of dive.

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Post time 2007-11-18 17:30:02 |Display all floors

are world central banks saving RMB bills now?

nothing is ruled out now.

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Post time 2007-11-18 18:47:27 |Display all floors

IF China is to float the RMB

To be a reserve currency, the currency has to be freely convertible.  If China is to float the RMB, there should be plans to convert a major part of the international trade, both imports and exports, to be based on the RMB.

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