Wednesday, November 6, 2013

The Rise Of China's Currency

China’s Yuan Makes Waves On International Currency Markets -- Ye Xie, Maria Levitov and Fion Li, Vancouver Sun/Bloomberg

Traders say the yuan’s rise as the biggest move in global currency since the euro’s introduction

Evidence the yuan is becoming truly global can be found in Rongrong Huo’s passport, which shows the HSBC banker bouncing from Switzerland to South Africa fielding inquiries from a growing number of clients on how they can trade China’s currency.

“The market potential is huge,” Huo, who heads HSBC’s yuan business development for Europe, said in an interview after returning to London from Warsaw. “Companies are asking, how can we make progress on this front? And investors are asking, how can we bring the yuan into our asset allocation? It’s encouraging to see the engagement. It’s about the future.”

Read more ....

Update: China seeks world role for 'people's money' -- France 24/AFP

My Comment: U.S. budget deficits coupled with US Fed quantitative easing is the reason why the Chinese yuan is rising .... people are losing confidence in the US greenback .... and are putting their money elsewhere .... and not necessarily in China. The geopolitical implications of this cannot be underestimated.

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