IMF's denial of China into SDR will lead to Yuan ending dollar domination sooner

[Economic superpower]

All currencies can be used to trade. So, Yuan is not any different from other currencies. However, Dollar and only the Dollar is officially recognized as international currency. All other currencies are measured against dollar



Having greater global presence doesn't mean it is international currency.

LOL what a noob.

Global usage of a currency means its an international currency.

If I was you, I would delete your comment before people start to laugh at you again like your failed prediction of Chinese stock market would go to 2,000

 

[SrNair]

If US is more friendly to Iraq，Iran，Syria，Russia，US dollar would have been more popular too.But what ever，You have serious IQ problem.

A Chinese talks about IQ
And you proved that in your post.
You are comparing Iraq,Syria and Iran with Russia .Seriously
AFAIK there is no such thing called Syria now and Iraq ,whatever it vremains in their oil sector still use $ for their business.
Last time I have heard a news that Chinese automobiles in Iran is shutting down due to European competitors and they will follow the $.

So only Russia and some small African nations.

 

[AndrewJin]

A Chinese talks about IQ

U know there is certain country which they call biggest demon-crazy where average is 80-90, similar to Sub-Sahara Africa.

The Puzzle Of Indian IQ: A Country Of Gypsies And Jews

 

[TaiShang]

A Chinese talks about IQ
And you proved that in your post.
You are comparing Iraq,Syria and Iran with Russia .Seriously
AFAIK there is no such thing called Syria now and Iraq ,whatever it vremains in their oil sector still use $ for their business.
Last time I have heard a news that Chinese automobiles in Iran is shutting down due to European competitors and they will follow the $.

So only Russia and some small African nations.

Exactly. For that reason, India is the largest trading nation in the world. lol

 

[AndrewJin]

Exactly. For that reason, India is the largest trading nation in the world. lol

India is the ideal market for B phone.

 

[Keel]

LOL.

That guy is Indian.

Most of them are!

I've read that our esteemed member @sweetgrape has given @ito a couple of basics on stock market and economics a while back and most Indians including Ito are till very confused

India is the ideal market for B phone.

Indians need Xiaomi
The dumpsites need B-phones

 

[mike2000 is back]

The yuan is still a long way from qualifying for SDR status. It has nothing to do with the 'evil' west/U.S not wanting China to join like some chinese members here think.

I dont know if chinese members here know that to qualify for the basket, currencies must be widely used to make payments in global transactions, and also widely traded in major exchange markets. So in this regard, the share a currency makes up of official reserves, international banking liabilities and global debt securities, as well as the volume of use in foreign-exchange markets are all major factors the IMF considers before granting a currency basket status.

Im sure @Shotgunner51 ,@LeveragedBuyout will agree with me that China doesnt yet meet all the crutiria as of now. Since as of the latest figures, the yuan ranked just seventh among currencies as a share of official reserves, behind the four SDR members as well as even the Australian and Canadian dollars. The IMF itself said the yuan constituted just a tiny 1.1 percent of official reserves, compared with 63.7 percent for the U.S. dollar and over 23% for the euro, and for our pound 4%(i.e almost 4 times china's value, despite the fact that we have a smaller economy/trade). Plus, the yuan also ranks outside the top five in terms of debt securities and currency trading. etc etc

So, as far as China's capital account market is still closed and its currency not freely convertible, then forget about it being included. The dollar, euro, pound, and yen are all fully convertible and their capital account markets are all open, so any country who wants to join this elite club will have to meet this criteria, there will be no favors im afraid. So china shouldnt take it personal IMO.

India is the ideal market for B phone.

Ahahahah......you people and the Bphone. Leave the high tech Bphobe alone.

 

[Guynextdoor2]

Highly unlikely, especially when China's overall influence is on decline due to demographics.

 

[mike2000 is back]

Whatever you think.My point is our currency doesn't need IMF's support to become more international.We don't even need IMF itself.Nobody really cares this SDR crap.

No china does care about the 'evil western dominated' IMF SDR crap.

https://www.linkedin.com/pulse/beij...-renminbi-sdr-adam-au?redirectFromSplash=true

China seeks yuan inclusion in IMF special drawing rights basket | Money | Mobile | Malay Mail Online

Who doesnt care about its currency being among the big elite globally recognised reserve currencies? Every country does/cares to be honest.

 

[TaiShang]

http://www.economist.com/blogs/freeexchange/2015/08/yuan-and-sdr

Two criteria determine whether a currency can be part of the SDR. Its issuing country must be a major exporter, and the currency must be freely usable. No one disputes that China meets the first criterion. Over the past five years, its exports averaged 11% of the global total. That places it behind the European Union and America but well ahead of Japan and Britain (the euro, dollar, yen and pound are the four currencies that currently make up the SDR).

The second criterion is the tricky one. If freely usable is understood as fully convertible, the yuan would not make the grade. China places caps on how much cash its residents can take out of the country; forces international companies to do extensive paperwork before bringing large sums in; and limits foreigners to strict quotas for investing in its capital markets.

But, as the IMF explains in its paper, freely usable means something else. It refers to whether a currency is widely used in international transactions and whether it is widely traded in global markets. Full convertibility would help a currency meet these standards but is not a prerequisite. In theory judging this ought to be clear-cut. Across a range of indicators considered by the IMF, the yuan seems to sit just outside the SDR club. In 2014 it ranked 7th among currencies in countries’ official reserve assets. It was the 8th-most used for both international debt securities and cross-border payments. As for trading, it ranked 11thin global currency spot markets.


Read more at http://www.economist.com/blogs/freeexchange/2015/08/yuan-and-sdr#RTGfPGQ6J6zbc6PA.99

 

[EAsian]

Had it been a friendly attitudetowards your neighbours they would have been fully supporty RMB.But that is not the case.
Major nations will follow US $.Entire West and a big chunk of major Asian nations.

If US is more friendly to Iraq，Iran，Russia，US dollar would have been more popular too.But what ever，You have serious IQ problem.

No china does care about the 'evil western dominated' IMF SDR crap.

https://www.linkedin.com/pulse/beij...-renminbi-sdr-adam-au?redirectFromSplash=true

China seeks yuan inclusion in IMF special drawing rights basket | Money | Mobile | Malay Mail Online

Who doesnt care about its currency being among the big elite globally recognised reserve currencies? Every country does/cares to be honest.

Yeah，It's like icing on the cake.But it's not a must and it won't significantly change anything.

 

[anon45]

Most of them are!

Perhaps, I can't speak for anyone else, but unless there are American Indians with white skin hailing from Russia (close to the black sea) who emigrated during the early 1900's, i'm not descended from one of them.

Yea the 1 picture response was over the top, but so is this thread's title. China has not been denied yet, the decision has been delayed. Likewise China is very,very,VERY far from challenging US dollar dominance, so this hyperbolic article predicting so far into the future is laughable. There is simply no alternative ready. especially not given China's currency and stock market manipulation.

 

[SrNair]

Exactly. For that reason, India is the largest trading nation in the world. lol

Trading wont give you extensive diplomatic power like that of US.
And India is just began their full fledged journey in entire field including manufacturing sector

U know there is certain country which they call biggest demon-crazy where average is 80-90, similar to Sub-Sahara Africa.
View attachment 245619

The Puzzle Of Indian IQ: A Country Of Gypsies And Jews

Really.
But history says a lot about Chinese travelling in to India for education .
Not vice versa .
We are here dude and we will use US$ in our ever 7.5 GDP rate growing economy .

 

[Keel]

Perhaps, I can't speak for anyone else, but unless there are American Indians with white skin hailing from Russia (close to the black sea) who emigrated during the early 1900's, i'm not descended from one of them.

Yea the 1 picture response was over the top, but so is this thread's title. China has not been denied yet, the decision has been delayed. Likewise China is very,very,VERY far from challenging US dollar dominance, so this hyperbolic article predicting so far into the future is laughable. There is simply no alternative ready. especially not given China's currency and stock market manipulation.

if you are into economics and finance, stock "manipulation" or manipulation of currencies is part of the trade world wide
It so happens China is the target, and has been so for a long time
Challenging the positions of the USD? It takes time and let the true american economists feel about it

ps as long as Indian trolls, you know who you are! Case closed

 

[PLANZubr]

LOL only slave countries like India use US dollars to trade. Now China is using only RMB and counterpart national currency to trade. We are dumping US dollar assets rapidly! Lucky for USA, traditional slave nations like India are still using dollar.