Saturday , June 15 2024
Home / SNB & CHF / Cool Video: CNBC Discussion about China and the SDR

Cool Video: CNBC Discussion about China and the SDR

Summary:
I had the privilege of being on CNBC to discuss the significance of China being included in the IMF's Special Drawing Right. Here is the link to the discussion.  The decision was announced shortly after the interview on CNBC.  It was largely a foregone conclusion that China would join.  Besides the confirmation, the new news was in the weighting.   China's yuan got an almost 11% share of the new SDR that will be launched 1 October 2016.  The room for the yuan comes comes mostly at the expense of Europe (euro and sterling).  The dollar's weighting is little changed at 41.73% vs 41.90% previously.  Among the five currencies that will make up the SDR, sterling has the least weight 8.09% (down from 11.3%).  The yen, which had the lowest weighting (of 9.4%), is now in fourth place with 8.33%.  The euro took the biggest hit.  Its share of the SDR was cut to 30.93% (from 37.4%).

Topics:
Marc Chandler considers the following as important: , , ,

This could be interesting, too:

Martin Hartmann writes Javier Milei: Der Beginn vom Ende der sozialistischen Weltherrschaft?

Akhtar Faruqui writes USD/CHF appreciates to near 0.8950 due to hawkish Fed, SNB Financial Stability Report eyed

Joseph Y. Calhoun writes Market Morsel: How “The Market” Is Really Doing

Raushan Gross writes How Bad Economic Policies Drive Out Good Entrepreneurs

Cool Video:  CNBC Discussion about China and the SDR
I had the privilege of being on CNBC to discuss the significance of China being included in the IMF's Special Drawing Right. Here is the link to the discussion. 
The decision was announced shortly after the interview on CNBC.  It was largely a foregone conclusion that China would join.  Besides the confirmation, the new news was in the weighting.   China's yuan got an almost 11% share of the new SDR that will be launched 1 October 2016. 
The room for the yuan comes comes mostly at the expense of Europe (euro and sterling).  The dollar's weighting is little changed at 41.73% vs 41.90% previously.  Among the five currencies that will make up the SDR, sterling has the least weight 8.09% (down from 11.3%).  The yen, which had the lowest weighting (of 9.4%), is now in fourth place with 8.33%.  The euro took the biggest hit.  Its share of the SDR was cut to 30.93% (from 37.4%).  
Marc Chandler
He has been covering the global capital markets in one fashion or another for more than 30 years, working at economic consulting firms and global investment banks. After 14 years as the global head of currency strategy for Brown Brothers Harriman, Chandler joined Bannockburn Global Forex, as a managing partner and chief markets strategist as of October 1, 2018.

Leave a Reply

Your email address will not be published. Required fields are marked *