JEWISH KING JESUS IS COMING AT THE RAPTURE FOR US IN THE CLOUDS-DON'T MISS IT FOR THE WORLD.THE BIBLE TAKEN LITERALLY- WHEN THE PLAIN SENSE MAKES GOOD SENSE-SEEK NO OTHER SENSE-LEST YOU END UP IN NONSENSE.GET SAVED NOW- CALL ON JESUS TODAY.THE ONLY SAVIOR OF THE WHOLE EARTH - NO OTHER.
1 COR 15:23-JESUS THE FIRST FRUITS-CHRISTIANS RAPTURED TO JESUS-FIRST FRUITS OF THE SPIRIT-23 But every man in his own order: Christ the firstfruits; afterward they that are Christ’s at his coming.ROMANS 8:23 And not only they, but ourselves also, which have the firstfruits of the Spirit, even we ourselves groan within ourselves, waiting for the adoption, to wit, the redemption of our body.(THE PRE-TRIB RAPTURE)
HOARDING OF GOLD AND SILVER
DOCTOR DOCTORIAN FROM ANGEL OF GOD
then the angel said, Financial crisis will come to Asia. I will shake the world.
JAMES 5:1-3
1 Go to now, ye rich men, weep and howl for your miseries that shall come upon you.
2 Your riches are corrupted, and your garments are motheaten.
3 Your gold and silver is cankered; and the rust of them shall be a witness against you, and shall eat your flesh as it were fire. Ye have heaped treasure together for the last days.
REVELATION 18:10,17,19
10 Standing afar off for the fear of her torment, saying, Alas, alas that great city Babylon, that mighty city! for in one hour is thy judgment come.
17 For in one hour so great riches is come to nought. And every shipmaster, and all the company in ships, and sailors, and as many as trade by sea, stood afar off,
19 And they cast dust on their heads, and cried, weeping and wailing, saying, Alas, alas that great city, wherein were made rich all that had ships in the sea by reason of her costliness! for in one hour is she made desolate.
EZEKIEL 7:19
19 They shall cast their silver in the streets, and their gold shall be removed:(CONFISCATED) their silver and their gold shall not be able to deliver them in the day of the wrath of the LORD: they shall not satisfy their souls, neither fill their bowels: because it is the stumblingblock of their iniquity.
LUKE 2:1-3
1 And it came to pass in those days, that there went out a decree from Caesar Augustus, that all the world should be taxed.
2 (And this taxing was first made when Cyrenius was governor of Syria.)
3 And all went to be taxed, every one into his own city.
REVELATION 13:16-18
16 And he(THE FALSE POPE WHO DEFECTED FROM THE CHRISTIAN FAITH) causeth all,(IN THE WORLD ) both small and great, rich and poor, free and bond, to receive a mark in their right hand, or in their foreheads:(MICROCHIP IMPLANT)
17 And that no man might buy or sell, save he that had the mark,(MICROCHIP IMPLANT) or the name of the beast,(WORLD DICTATORS NAME INGRAVED ON YOUR SKIN OR TATTOOED ON YOU OR IN THE MICROCHIP IMPLANT) or the number of his name.(THE NUMBERS OF HIS NAME INGRAVED IN THE MICROCHIP IMLPLANT)-(ALL THESE WILL TELL THE WORLD DICTATOR THAT YOUR WITH HIM AND AGAINST KING JESUS-GOD)
18 Here is wisdom. Let him that hath understanding count the number of the beast:(WORLD LEADER) for it is the number of a man; and his number is Six hundred threescore and six.(6-6-6) A NUMBER SYSTEM (6006006)OR(60020202006)(SOME KIND OF NUMBER IMPLANTED IN THE MICROCHIP THAT TELLS THE WORLD DICTATOR AND THE NEW WORLD ORDER THAT YOU GIVE YOUR TOTAL ALLIGIENCE TO HIM AND NOT JESUS)(ITS AN ETERNAL DECISION YOU MAKE)(YOU CHOOSE YOUR OWN DESTINY)(YOU TAKE THE DICTATORS NAME OR NUMBER UNDER YOUR SKIN,YOUR DOOMED TO THE LAKE OF FIRE AND TORMENTS FOREVER,NEVER ENDING MEANT ONLY FOR SATAN AND HIS ANGELS,NOT HUMAN BEINGS).OR YOU REFUSE THE MICROCHIP IMPLANT AND GO ON THE SIDE OF KING JESUS AND RULE FOREVER WITH HIM ON EARTH.YOU CHOOSE,ITS YOUR DECISION.
EU ARMY
DANIEL 8:23-25
23 And in the latter time of their kingdom, when the transgressors are come to the full, a king (EU DICTATOR) of fierce countenance, and understanding dark sentences,(FROM THE OCCULT-NEW AGE MOVEMENT) shall stand up.
24 And his power shall be mighty, but not by his own power:(SATANS POWER) and he shall destroy wonderfully, and shall prosper, and practise, and shall destroy the mighty and the holy people.
25 And through his policy also he shall cause craft to prosper in his hand; and he shall magnify himself in his heart, and by peace shall destroy many: he shall also stand up against the Prince of princes;(JESUS) but he shall be broken without hand.
DANIEL 11:36-39
36 And the king (EU DICTATOR) shall do according to his will; and he shall exalt himself, and magnify himself above every god, and shall speak marvellous things against the God of gods, and shall prosper till the indignation be accomplished: for that that is determined shall be done.
37 Neither shall he regard the God of his fathers,(THIS EU DICTATOR IS JEWISH) nor the desire of women, nor regard any god: for he shall magnify himself above all.(CLAIM TO BE GOD)
38 But in his estate shall he honour the God of forces:(WAR) and a god whom his fathers knew not shall he honour with gold, and silver, and with precious stones, and pleasant things.
39 Thus shall he do in the most strong holds with a strange god,(DESTROY TERROR GROUPS) whom he shall acknowledge and increase with glory: and he shall cause them to rule over many,(HIS ARMY LEADERS) and shall divide the land for gain.
REVELATION 19:19
19 And I saw the beast,(EU LEADER) and the kings of the earth, and their armies,(UNITED NATIONS TROOPS) gathered together to make war against him that sat on the horse,(JESUS) and against his army.(THE RAPTURED CHRISTIANS)
EU WORLD ECONOMIC CONTROL-AND WORLD GOVERNMENT CONTROL.
DANIEL 7:23-25
23 Thus he said, The fourth beast (EU,REVIVED ROME) shall be the fourth kingdom upon earth,(7TH WORLD EMPIRE) which shall be diverse from all kingdoms, and shall devour the whole earth, and shall tread it down, and break it in pieces.(TRADING BLOCKS-10 WORLD REGIONS/TRADE BLOCS)
24 And the ten horns out of this kingdom are ten kings(10 NATIONS-10 WORLD DIVISION WORLD GOVERNMENT) that shall arise: and another shall rise after them; and he shall be diverse from the first, and he shall subdue three kings.(THE EU (EUROPEAN UNION) TAKES OVER IRAQ WHICH HAS SPLIT INTO 3-SUNNI-KURD-SHIA PARTS-AND THE REVIVED ROMAN EMPIRE IS BROUGHT BACK TOGETHER-THE TWO LEGS OF DANIEL WESTERN LEG AND THE ISLAMIC LEG COMBINED AS 1)
LUKE 2:1-3
1 And it came to pass in those days, that there went out a decree from Caesar Augustus, that all the world should be taxed.
2 (And this taxing was first made when Cyrenius was governor of Syria.)
3 And all went to be taxed, every one into his own city.
MAYBE THE EUROPEAN UNION WILL BE INVOLVED IN THE RESERVE CURRENCY MIX.THE EURO MIGHT BE THE BEST CURRENCY.AND THEN WHEN THE WORLD COLLAPSE OF THE STOCK MARKETS OCCURS.THE EUROPEAN UNION WILL HAVE THE MICROCHIP IMPLANT SYSTEM SET UP AND READY TO GO.AND THE EUROPEAN UNION WILL THEN IMPLIMENT THIS MICROCHIP IMPLANT IN YOUR RIGHT HAND OR FOREHEAD.AND THEY WILL CONTROL THE WHOLE WORLDS ECONOMIES LIKE THE BIBLE SAYS MUST HAPPEN.SOMEHOW THE EU WILL CONTROL ALL 10 WORLD TRADE BLOCS WHICH THE WORLD IS DIVIDED INTO-AND TAKE CONTROL OF ALL THE WORLDS CURRENCIES.
EU FINANCIAL AFFAIRS
http://ec.europa.eu/economy_finance/euro/world/index_en.htm
http://ec.europa.eu/economy_finance/euro/world/other_currencies/index_en.htm
http://ec.europa.eu/economy_finance/euro/world/markets/index_en.htm
IMF SDRS
http://www.imf.org/external/np/exr/facts/sdr.HTM
The euro in the world
As well as serving as the currency of the euro area, the euro has a strong international presence. Currencies are the means by which wealth is stored, protected and exchanged between countries, organisations and individuals. A global currency, such as the euro, does this on a global scale. Since its introduction in 1999, it has firmly established itself as a major international currency, second only to the US dollar.Within the euro area, the single currency, the euro, is the means by which governments, companies and individuals make and receive payments for goods and services. It is also used to store and create wealth for the future as savings and investments. However, the size, stability and strength of the euro-area economy – the world's second largest after the United States – make the euro increasingly attractive beyond its borders, too. Public and private sectors in third countries acquire and use the euro for many purposes, including for trade or as currency reserves. For this reason, today, the euro is the second most important international currency behind the US dollar. The widespread use of the euro in the international financial and monetary system demonstrates its global presence:
-The euro is increasingly used to issue government and corporate debt worldwide. At the end of 2006, the share of the euro in international debt markets was around one-third, while the US dollar accounted for 44%.
-Global banks make significant loans denominated in euro around the world.
-The euro is the second most actively traded currency in foreign exchange markets; it is a counterpart in around 40% of the daily transactions.
-The euro is extensively used for invoicing and paying in international trade, not only between the euro area and third countries but also, to a lesser extent, between third countries.
-The euro is widely used, alongside the US dollar, as an important reserve currency to hold for monetary emergencies. At the end of 2006, more than one-quarter of the global foreign exchange holdings were being held in euros, compared to 18% in 1999. Developing countries are among those which have increased their reserves in euro the most, from 18% in 1999 to around 30% in 2006.
-Several countries manage their currencies by linking them to the euro, which acts as an anchor or reference currency.
The status of the euro as a global currency, combined with the size and economic weight of the euro area, is leading international economic organisations, such as the IMF and the G8, increasingly to view the euro-area economy as one entity. This gives the European Union a stronger voice in the world.To benefit from this stronger position, and to contribute effectively to international financial stability, the euro area is speaking with one voice more and more in important economic fora. This is done through close coordination between the euro-area Member States, as well as the European Central Bank and the European Commission during international economic meetings.A number of third countries and regions are even more closely linked to the euro. The stable monetary system behind the euro makes it an attractive 'anchor' currency for them, particularly for those that have special institutional arrangements with the EU, such as preferential trade agreements. By linking their currency to the euro they bring more certainty and stability to their national economies.The euro is also widely used in third countries and regions neighbouring the euro area, for example in South-eastern Europe, while some other countries – Andorra, Monaco, San Marino and the Vatican City – use the euro as their official currency by virtue of specific monetary agreements with the EU, and may issue their own euro coins within certain quantitative limits.
Links to other currencies
Several countries and territories outside the European Union have linked their currencies to the euro. This is because the stable monetary system behind the euro makes it an attractive 'anchor' currency for them. In some cases, it is by bilateral agreement with the EU, while in others it is a unilateral decision of the country concerned.Non-euro area Member States link their currencies to the euro through the Exchange Rate Mechanism (ERM II). This linkage is part of the preparations for entry to the euro area. However, other countries can also link their currencies to the euro by supporting a fixed exchange rate against the euro. This is known as a ‘currency peg’.In some cases, countries with weak economies make this linkage as a safety measure. Linking the value of their national currency to a ‘hard currency’, such as the euro, brings more certainty and stability to their national economies. In other cases, the linkages can be made to promote trade stability by avoiding strong exchange-rate fluctuations. While for some, this linkage is made through a ‘basket’ of currencies that includes the euro – in such cases the link is less direct.
Currencies linked to the euro by bilateral agreements are:
-The CFP franc used in French overseas territories in the Pacific region (French Polynesia, New Caledonia and Wallis and Futuna Islands). The CFP franc was previously linked to the French franc via a fixed parity and is now pegged to the euro. The euro area has no obligation to support the exchange rate with the CFP franc.
-The two CFA francs used by several countries in two monetary unions in West Africa and Central Africa. These countries have historical relations with France, and the CFA francs were previously pegged to the French franc. They are now pegged to the euro through bilateral agreements with France. The euro area has no obligation to support the exchange rate with the CFA francs.
-The Comorian franc (Comoros Islands) and the Cape Verde escudo (Cape Verde) were previously linked to the French franc and Portuguese escudo, respectively. They are now linked to the euro through bilateral agreements. The euro area has no obligation to support these currency pegs.
Examples of currencies linked unilaterally to the euro
-Several countries link their national currency directly to the euro. This is achieved through supporting an exchange rate against the euro that is only allowed to fluctuate within defined limits. The third countries’ monetary authorities support this exchange-rate peg on their own by intervening in currency markets. The euro area has no agreements or obligations to support these currencies. Such unilateral links with the euro exist, for example, in the former Yugoslav Republic of Macedonia, Serbia and Tunisia.-A number of EU countries which are not yet part of the euro area – Czech Republic, Croatia, Romania – also manage their currencies in this way. And Hungary even shadows the Exchange Rate Mechanism (ERM II) by pegging the forint and applying a ±15% fluctuation band.-Bulgaria and Bosnia and Herzegovina maintain euro-based currency boards in charge of supporting the fixed foreign exchange rate, to which the normal objectives of central banks are subordinated.-Other countries link their currencies to the euro through a ‘currency basket’. In this case, the exchange rate of the national currency is linked to a fictitious exchange rate from a ‘basket’ of other currencies, such as the euro, the US dollar, and the Japanese yen. Countries that use such ‘currency baskets’ are Botswana, Jordan, Libya, Morocco, Russia, Seychelles, and Vanuatu.
International financial markets
The euro is a key global currency which has an important role in international financial markets. It is used widely by third-country governments and private actors worldwide as a currency of choice for their reserves, their borrowing and for trade.The euro is an attractive currency for the international financial markets because of the size of the euro-area economy, its openness to trade with the world, its commitment to prudent economic management, and the clear mission of the European Central Bank to run a monetary policy that ensures price stability.These factors give international financial markets the confidence to use the euro widely, alongside the US dollar, in a range of financial instruments:
International debt markets
-Third countries wishing to raise large amounts of money can do this by issuing bonds that are repaid with interest at a fixed future date. Large institutional investors, such as pension funds, usually buy such bonds because they are seen as low-risk investments. When a country issues bonds in a foreign currency, they are known as sovereign bonds. Large private corporations can also issue "corporate bonds" in a foreign currency to fund their operations and investments. Such bonds are traded on "international debt markets". At the end of 2006, the share of euro-denominated debt in international debt markets was 31.4%, while the US dollar comprised 44.1%
International loan and deposit markets
-Banks make loans and accept deposits across the world in various currencies which form the international loan and deposit markets. This lending and borrowing involves countries and corporations worldwide, for example a corporation borrowing to fund new investments in a developing country, or a government placing oil revenues on deposit with a bank until needed. The euro is playing an important role in these markets. In December 2006, euro-area bank lending to non-bank institutions outside the euro area was denominated at 36.3% in euro and 44.8% in US dollars.
Foreign exchange markets
-Foreign exchange (forex) markets are those where currencies are traded for others. The euro has become the second most actively traded currency in forex markets. At the beginning of 2007, it was a counterpart in around 37% of the daily transactions, compared to a share of 86.5% for the US dollar, 16.5% for the Japanese yen and 15% for the pound sterling (both sides of transactions are counted so that shares add up to 200%).
International trade
-The euro is increasingly used by euro-area Member States as the currency of settlement and invoicing in international trade. In the first quarter of 2006, in most euro-area countries where data was available the average share of the euro in euro-area exports of goods to countries outside the EU was around 50% - slightly surpassing the US dollar, which is used in around 44% of the transactions in terms of value - whereas in imports of goods the euro's share was around 35%. To a much smaller extent, the euro is beginning to be used as a 'vehicle currency' for trade between third countries, although the US dollar is still dominant in this. As the euro area constitutes the largest trading block and one of the most open economies in the world, the use of the euro in international trade can be expected to grow in the future.
Reserves and anchors
-As a major currency, the euro is used as an "anchor currency" by some third countries to manage their own exchange-rate regimes. For example, Russia uses the euro as part of a basket of currencies for the daily management of the rouble exchange rate. In addition, the euro is increasingly held as a reserve currency by third countries because they have confidence it will maintain its value. The share of the euro in global foreign exchange reserves is over 25% (mid 2007) and close to 29% in developing countries, which have increased their reserves significantly from 18% held in 1999. In comparison, the US dollar accounts for around 65% and the pound sterling for around 4.5% of global currency reserves.
The establishment of the euro area also created the second largest currency area in the world. On international markets, the euro is the second most important international currency after the US dollar. The size and stability of the euro-area economy and the liquidity of its financial markets make holding and using the euro attractive to third countries as an alternative to US dollars - helping reduce the risks of currency fluctuations and contributing to global economic stability. The euro-area Member States also benefit, as trading in euro becomes more widespread. Further, the importance of the euro gives the euro area a stronger voice on the international stage.
Factsheet-Special Drawing Rights (SDRs)-April 9, 2015
The SDR is an international reserve asset, created by the IMF in 1969 to supplement its member countries’ official reserves. Its value is based on a basket of four key international currencies, and SDRs can be exchanged for freely usable currencies. As of March 17, 2015, 204 billion SDRs were created and allocated to members (equivalent to about $280 billion).
The role of the SDR
The SDR was created by the IMF in 1969 to support the Bretton Woods fixed exchange rate system. A country participating in this system needed official reserves—government or central bank holdings of gold and widely accepted foreign currencies—that could be used to purchase the domestic currency in foreign exchange markets, as required to maintain its exchange rate. But the international supply of two key reserve assets—gold and the U.S. dollar—proved inadequate for supporting the expansion of world trade and financial development that was taking place. Therefore, the international community decided to create a new international reserve asset under the auspices of the IMF.
Only a few years after the creation of SDRs, the Bretton Woods system collapsed and the major currencies shifted to a floating exchange rate regime. In addition, the growth in international capital markets facilitated borrowing by creditworthy governments. Both of these developments lessened the need for SDRs. However, more recently, the 2009 SDR allocations totaling SDR 182.6 billion have played a critical role in providing liquidity to the global economic system and supplementing member countries’ official reserves amid the global financial crisis.
The SDR is neither a currency, nor a claim on the IMF. Rather, it is a potential claim on the freely usable currencies of IMF members. Holders of SDRs can obtain these currencies in exchange for their SDRs in two ways: first, through the arrangement of voluntary exchanges between members; and second, by the IMF designating members with strong external positions to purchase SDRs from members with weak external positions. In addition to its role as a supplementary reserve asset, the SDR serves as the unit of account of the IMF and some other international organizations.
Basket of currencies determines the value of the SDR
The value of the SDR was initially defined as equivalent to 0.888671 grams of fine gold—which, at the time, was also equivalent to one U.S. dollar. After the collapse of the Bretton Woods system in 1973, the SDR was redefined as a basket of currencies. Today the SDR basket consists of the euro, Japanese yen, pound sterling, and U.S. dollar. The value of the SDR in terms of the U.S. dollar is determined daily and posted on the IMF’s website. It is calculated as the sum of specific amounts of the four basket currencies valued in U.S. dollars, on the basis of exchange rates quoted at noon each day in the London market.
The basket composition is reviewed every five years by the Executive Board, or earlier if the IMF finds changed circumstances warrant an earlier review, to ensure that it reflects the relative importance of currencies in the world’s trading and financial systems. In the most recent review (in November 2010), the weights of the currencies in the SDR basket were revised based on the value of the exports of goods and services, and the amount of reserves denominated in the respective currencies that were held by other members of the IMF. These changes became effective on January 1, 2011. In October 2011, the IMF Executive Board discussed possible options for broadening the SDR currency basket. Most directors held the view that the current criteria for SDR basket selection remained appropriate. The next review is currently scheduled to take place by the end of 2015.
The SDR interest rate
The SDR interest rate provides the basis for calculating the interest charged to borrowing members, and the interest paid to members for the use of their resources for regular (non-concessional) IMF loans. It is also the interest paid to members on their SDR holdings and charged on their SDR allocation. The SDR interest rate is determined weekly and is based on a weighted average of representative interest rates on short-term debt instruments in the money markets of the SDR basket currencies.
SDR allocations to IMF members
Under its Articles of Agreement (Article XV, Section 1, and Article XVIII), the IMF may allocate SDRs to member countries in proportion to their IMF quotas. Such an allocation provides each member with a costless, unconditional international reserve asset. The SDR mechanism is self-financing and levies charges on allocations which are then used to pay interest on SDR holdings. If a member does not use any of its allocated SDR holdings, the charges are equal to the interest received. However, if a member's SDR holdings rise above its allocation, it effectively earns interest on the excess. Conversely, if it holds fewer SDRs than allocated, it pays interest on the shortfall. The Articles of Agreement also allow for cancellations of SDRs, but this provision has never been used. The IMF cannot allocate SDRs to itself or to other prescribed holders.
General allocations of SDRs have to be based on a long-term global need to supplement existing reserve assets. Decisions on general allocations are made for successive basic periods of up to five years, although general SDR allocations have been made only three times. The first allocation was for a total amount of SDR 9.3 billion, distributed in 1970-72, the second—for SDR 12.1 billion—distributed in 1979-81, and the third—for SDR 161.2 billion—was made on August 28, 2009.
Separately, the Fourth Amendment to the Articles of Agreement became effective August 10, 2009 and provided for a special one-time allocation of SDR 21.5 billion. The purpose of the Fourth Amendment was to enable all members of the IMF to participate in the SDR system on an equitable basis and rectify the fact that countries that joined the IMF after 1981—more than one fifth of the current IMF membership—never received an SDR allocation until 2009.
The 2009 general and special SDR allocations together raised total cumulative SDR allocations to SDR 204 billion.
Buying and selling SDRs
IMF members often need to buy SDRs to discharge obligations to the IMF, or they may wish to sell SDRs in order to adjust the composition of their reserves. The IMF may act as an intermediary between members and prescribed holders to ensure that SDRs can be exchanged for freely usable currencies. For more than two decades, the SDR market has functioned through voluntary trading arrangements. Under these arrangements a number of members and one prescribed holder have volunteered to buy or sell SDRs within limits defined by their respective arrangements. Following the 2009 SDR allocations, the number and size of the voluntary arrangements has been expanded to ensure continued liquidity of the voluntary SDR market. The number of voluntary SDR trading arrangements now stands at 32, including 19 new arrangements since the 2009 SDR allocations.
In the event that there is insufficient capacity under the voluntary trading arrangements, the IMF can activate the designation mechanism. Under this mechanism, members with sufficiently strong external positions are designated by the IMF to buy SDRs with freely usable currencies up to certain amounts from members with weak external positions. This arrangement serves as a backstop to guarantee the liquidity and the reserve asset character of the SDR.
China-IMF talks underway to endorse yuan as global reserve currency-March 12, 2015, 12:12 pm
Including the yuan in the SDR basket would aid China’s attempts to diminish the dollar’s dominance in global trade and finance [Xinhua]-China is pushing for the International Monetary Fund to endorse the Chinese yuan as a global reserve currency alongside the dollar and euro.A senior Chinese central bank official said Thursday that the country is “actively communicating” with the IMF on the possibility of including the yuan, or RMB, in the basket of the Special Drawing Rights (SDRs).Including the yuan in the SDR system would allow the IMF to recognize the ascent of the world’s second-biggest economy while aiding China’s attempts to diminish the dollar’s dominance in global trade and finance.“We hope the IMF can fully take into account the progress of RMB internationalization, to include RMB into the basket underlining the SDR in foreseeable, near future,” said Yi Gang, vice governor of the People’s Bank of China.However, China will be patient until conditions are ripe, Yi said at a press conference on the sidelines of the ongoing annual parliamentary session.In late 2015, the IMF will conduct its next twice-a-decade review of the basket of currencies its members can count toward their official reserves.SDRs are international foreign exchange reserve assets. Allocated to nations by the IMF, an SDR represents a claim to foreign currencies for which it may be exchanged in times of need.Although denominated in US dollars, the nominal value of an SDR is derived from a basket of currencies, with, specifically, a fixed amount of Japanese yen, US dollars, British pounds and euros, without RMB.China would need to satisfy the Washington-based lender’s economic benchmarks and get the support of most of the other 187 member countries.To become a currency included in the SDR basket, the trade volume of goods and services behind that currency will be evaluated, the Chinese Central Bank official explained on Thursday, stressing that RMB has no problem in this regard. But he said views are divided on whether the RMB is a freely usable currency.“No matter whether and when the RMB will be included in the SDR basket, China will push on with its financial sector reform and opening-up,” Yi said.The yuan became the world’s No. 2 currency for trade finance globally in 2013, and overtook the Canadian and Australian dollars to enter the top five world payment currencies in 2014, according to global transaction services organization SWIFT.China said the yuan has also been used as a reserve currency in some countries and regions.
Yuan seen taking 12.5% of global reserves by 2030: HSBC survey-Reuters Apr 13, 2015, 11.35AM IST
(The survey was carried out…)-HONG KONG: China's yuan is expected to take a 12.5 percent market share of global reserves by 2030, an HSBC survey of global reserve managers showed, suggesting that Beijing's stepped up efforts to open its markets to foreign investments will have some pay off.The survey was carried out in March and drew on responses from 72 central banks which manages $5.9 trillion in reserves, or 48 percent of global reserves.The yuan's rise will be a gradual one, accounting for 2.9 percent of global reserves by the end of 2015, 6.9 percent by 2020, 10.4 percent by 2025 and 12.5 percent by 2030, the survey revealed.Thirty-five central banks, or 53 percent of respondents, said they were either investing or considering investing in yuan assets now, but channels to China's domestic markets were limited for them."Investment opportunities are still limited as regards liquidity of markets and diversification within the market mainly due to credit risk considerations," said a European reserve manager.Foreign central banks have been buying Chinese assets in the onshore interbank bond market as well as in the offshore dim sum market. Their purchases are usually biased toward high-quality investment-grade bonds issued by central governments or policy banks.China sent a strong message to the International Monetary Fund (IMF) in March urging that the yuan be included in its special drawing rights (SDR) basket, promising it would strive for further reforms and aim for full convertibility this year.Beijing has also taken steps to open up its markets to foreign capital and has been pushing for the increased use of the yuan for trade and investment with a broader goal of eventually putting its currency on par with the U.S. dollar.So far, more than 50 foreign central banks have started to use the yuan or keep it as part of their foreign reserves, according to industry estimate.
China has signed currency swaps with 31 countries worth 3,120 billion yuan to encourage bilateral trade and investment.Although central banks already started to have exposure to the renminbi, how fast it becomes a large reserve currency will depend on growth and stability of the economy, pace of the internationalisation and deepening of China's financial markets, said a surveyed reserve manager.
HOARDING OF GOLD AND SILVER
DOCTOR DOCTORIAN FROM ANGEL OF GOD
then the angel said, Financial crisis will come to Asia. I will shake the world.
JAMES 5:1-3
1 Go to now, ye rich men, weep and howl for your miseries that shall come upon you.
2 Your riches are corrupted, and your garments are motheaten.
3 Your gold and silver is cankered; and the rust of them shall be a witness against you, and shall eat your flesh as it were fire. Ye have heaped treasure together for the last days.
REVELATION 18:10,17,19
10 Standing afar off for the fear of her torment, saying, Alas, alas that great city Babylon, that mighty city! for in one hour is thy judgment come.
17 For in one hour so great riches is come to nought. And every shipmaster, and all the company in ships, and sailors, and as many as trade by sea, stood afar off,
19 And they cast dust on their heads, and cried, weeping and wailing, saying, Alas, alas that great city, wherein were made rich all that had ships in the sea by reason of her costliness! for in one hour is she made desolate.
EZEKIEL 7:19
19 They shall cast their silver in the streets, and their gold shall be removed:(CONFISCATED) their silver and their gold shall not be able to deliver them in the day of the wrath of the LORD: they shall not satisfy their souls, neither fill their bowels: because it is the stumblingblock of their iniquity.
LUKE 2:1-3
1 And it came to pass in those days, that there went out a decree from Caesar Augustus, that all the world should be taxed.
2 (And this taxing was first made when Cyrenius was governor of Syria.)
3 And all went to be taxed, every one into his own city.
REVELATION 13:16-18
16 And he(THE FALSE POPE WHO DEFECTED FROM THE CHRISTIAN FAITH) causeth all,(IN THE WORLD ) both small and great, rich and poor, free and bond, to receive a mark in their right hand, or in their foreheads:(MICROCHIP IMPLANT)
17 And that no man might buy or sell, save he that had the mark,(MICROCHIP IMPLANT) or the name of the beast,(WORLD DICTATORS NAME INGRAVED ON YOUR SKIN OR TATTOOED ON YOU OR IN THE MICROCHIP IMPLANT) or the number of his name.(THE NUMBERS OF HIS NAME INGRAVED IN THE MICROCHIP IMLPLANT)-(ALL THESE WILL TELL THE WORLD DICTATOR THAT YOUR WITH HIM AND AGAINST KING JESUS-GOD)
18 Here is wisdom. Let him that hath understanding count the number of the beast:(WORLD LEADER) for it is the number of a man; and his number is Six hundred threescore and six.(6-6-6) A NUMBER SYSTEM (6006006)OR(60020202006)(SOME KIND OF NUMBER IMPLANTED IN THE MICROCHIP THAT TELLS THE WORLD DICTATOR AND THE NEW WORLD ORDER THAT YOU GIVE YOUR TOTAL ALLIGIENCE TO HIM AND NOT JESUS)(ITS AN ETERNAL DECISION YOU MAKE)(YOU CHOOSE YOUR OWN DESTINY)(YOU TAKE THE DICTATORS NAME OR NUMBER UNDER YOUR SKIN,YOUR DOOMED TO THE LAKE OF FIRE AND TORMENTS FOREVER,NEVER ENDING MEANT ONLY FOR SATAN AND HIS ANGELS,NOT HUMAN BEINGS).OR YOU REFUSE THE MICROCHIP IMPLANT AND GO ON THE SIDE OF KING JESUS AND RULE FOREVER WITH HIM ON EARTH.YOU CHOOSE,ITS YOUR DECISION.
EU ARMY
DANIEL 8:23-25
23 And in the latter time of their kingdom, when the transgressors are come to the full, a king (EU DICTATOR) of fierce countenance, and understanding dark sentences,(FROM THE OCCULT-NEW AGE MOVEMENT) shall stand up.
24 And his power shall be mighty, but not by his own power:(SATANS POWER) and he shall destroy wonderfully, and shall prosper, and practise, and shall destroy the mighty and the holy people.
25 And through his policy also he shall cause craft to prosper in his hand; and he shall magnify himself in his heart, and by peace shall destroy many: he shall also stand up against the Prince of princes;(JESUS) but he shall be broken without hand.
DANIEL 11:36-39
36 And the king (EU DICTATOR) shall do according to his will; and he shall exalt himself, and magnify himself above every god, and shall speak marvellous things against the God of gods, and shall prosper till the indignation be accomplished: for that that is determined shall be done.
37 Neither shall he regard the God of his fathers,(THIS EU DICTATOR IS JEWISH) nor the desire of women, nor regard any god: for he shall magnify himself above all.(CLAIM TO BE GOD)
38 But in his estate shall he honour the God of forces:(WAR) and a god whom his fathers knew not shall he honour with gold, and silver, and with precious stones, and pleasant things.
39 Thus shall he do in the most strong holds with a strange god,(DESTROY TERROR GROUPS) whom he shall acknowledge and increase with glory: and he shall cause them to rule over many,(HIS ARMY LEADERS) and shall divide the land for gain.
REVELATION 19:19
19 And I saw the beast,(EU LEADER) and the kings of the earth, and their armies,(UNITED NATIONS TROOPS) gathered together to make war against him that sat on the horse,(JESUS) and against his army.(THE RAPTURED CHRISTIANS)
EU WORLD ECONOMIC CONTROL-AND WORLD GOVERNMENT CONTROL.
DANIEL 7:23-25
23 Thus he said, The fourth beast (EU,REVIVED ROME) shall be the fourth kingdom upon earth,(7TH WORLD EMPIRE) which shall be diverse from all kingdoms, and shall devour the whole earth, and shall tread it down, and break it in pieces.(TRADING BLOCKS-10 WORLD REGIONS/TRADE BLOCS)
24 And the ten horns out of this kingdom are ten kings(10 NATIONS-10 WORLD DIVISION WORLD GOVERNMENT) that shall arise: and another shall rise after them; and he shall be diverse from the first, and he shall subdue three kings.(THE EU (EUROPEAN UNION) TAKES OVER IRAQ WHICH HAS SPLIT INTO 3-SUNNI-KURD-SHIA PARTS-AND THE REVIVED ROMAN EMPIRE IS BROUGHT BACK TOGETHER-THE TWO LEGS OF DANIEL WESTERN LEG AND THE ISLAMIC LEG COMBINED AS 1)
LUKE 2:1-3
1 And it came to pass in those days, that there went out a decree from Caesar Augustus, that all the world should be taxed.
2 (And this taxing was first made when Cyrenius was governor of Syria.)
3 And all went to be taxed, every one into his own city.
MAYBE THE EUROPEAN UNION WILL BE INVOLVED IN THE RESERVE CURRENCY MIX.THE EURO MIGHT BE THE BEST CURRENCY.AND THEN WHEN THE WORLD COLLAPSE OF THE STOCK MARKETS OCCURS.THE EUROPEAN UNION WILL HAVE THE MICROCHIP IMPLANT SYSTEM SET UP AND READY TO GO.AND THE EUROPEAN UNION WILL THEN IMPLIMENT THIS MICROCHIP IMPLANT IN YOUR RIGHT HAND OR FOREHEAD.AND THEY WILL CONTROL THE WHOLE WORLDS ECONOMIES LIKE THE BIBLE SAYS MUST HAPPEN.SOMEHOW THE EU WILL CONTROL ALL 10 WORLD TRADE BLOCS WHICH THE WORLD IS DIVIDED INTO-AND TAKE CONTROL OF ALL THE WORLDS CURRENCIES.
EU FINANCIAL AFFAIRS
http://ec.europa.eu/economy_finance/euro/world/index_en.htm
http://ec.europa.eu/economy_finance/euro/world/other_currencies/index_en.htm
http://ec.europa.eu/economy_finance/euro/world/markets/index_en.htm
IMF SDRS
http://www.imf.org/external/np/exr/facts/sdr.HTM
The euro in the world
As well as serving as the currency of the euro area, the euro has a strong international presence. Currencies are the means by which wealth is stored, protected and exchanged between countries, organisations and individuals. A global currency, such as the euro, does this on a global scale. Since its introduction in 1999, it has firmly established itself as a major international currency, second only to the US dollar.Within the euro area, the single currency, the euro, is the means by which governments, companies and individuals make and receive payments for goods and services. It is also used to store and create wealth for the future as savings and investments. However, the size, stability and strength of the euro-area economy – the world's second largest after the United States – make the euro increasingly attractive beyond its borders, too. Public and private sectors in third countries acquire and use the euro for many purposes, including for trade or as currency reserves. For this reason, today, the euro is the second most important international currency behind the US dollar. The widespread use of the euro in the international financial and monetary system demonstrates its global presence:
-The euro is increasingly used to issue government and corporate debt worldwide. At the end of 2006, the share of the euro in international debt markets was around one-third, while the US dollar accounted for 44%.
-Global banks make significant loans denominated in euro around the world.
-The euro is the second most actively traded currency in foreign exchange markets; it is a counterpart in around 40% of the daily transactions.
-The euro is extensively used for invoicing and paying in international trade, not only between the euro area and third countries but also, to a lesser extent, between third countries.
-The euro is widely used, alongside the US dollar, as an important reserve currency to hold for monetary emergencies. At the end of 2006, more than one-quarter of the global foreign exchange holdings were being held in euros, compared to 18% in 1999. Developing countries are among those which have increased their reserves in euro the most, from 18% in 1999 to around 30% in 2006.
-Several countries manage their currencies by linking them to the euro, which acts as an anchor or reference currency.
The status of the euro as a global currency, combined with the size and economic weight of the euro area, is leading international economic organisations, such as the IMF and the G8, increasingly to view the euro-area economy as one entity. This gives the European Union a stronger voice in the world.To benefit from this stronger position, and to contribute effectively to international financial stability, the euro area is speaking with one voice more and more in important economic fora. This is done through close coordination between the euro-area Member States, as well as the European Central Bank and the European Commission during international economic meetings.A number of third countries and regions are even more closely linked to the euro. The stable monetary system behind the euro makes it an attractive 'anchor' currency for them, particularly for those that have special institutional arrangements with the EU, such as preferential trade agreements. By linking their currency to the euro they bring more certainty and stability to their national economies.The euro is also widely used in third countries and regions neighbouring the euro area, for example in South-eastern Europe, while some other countries – Andorra, Monaco, San Marino and the Vatican City – use the euro as their official currency by virtue of specific monetary agreements with the EU, and may issue their own euro coins within certain quantitative limits.
Links to other currencies
Several countries and territories outside the European Union have linked their currencies to the euro. This is because the stable monetary system behind the euro makes it an attractive 'anchor' currency for them. In some cases, it is by bilateral agreement with the EU, while in others it is a unilateral decision of the country concerned.Non-euro area Member States link their currencies to the euro through the Exchange Rate Mechanism (ERM II). This linkage is part of the preparations for entry to the euro area. However, other countries can also link their currencies to the euro by supporting a fixed exchange rate against the euro. This is known as a ‘currency peg’.In some cases, countries with weak economies make this linkage as a safety measure. Linking the value of their national currency to a ‘hard currency’, such as the euro, brings more certainty and stability to their national economies. In other cases, the linkages can be made to promote trade stability by avoiding strong exchange-rate fluctuations. While for some, this linkage is made through a ‘basket’ of currencies that includes the euro – in such cases the link is less direct.
Currencies linked to the euro by bilateral agreements are:
-The CFP franc used in French overseas territories in the Pacific region (French Polynesia, New Caledonia and Wallis and Futuna Islands). The CFP franc was previously linked to the French franc via a fixed parity and is now pegged to the euro. The euro area has no obligation to support the exchange rate with the CFP franc.
-The two CFA francs used by several countries in two monetary unions in West Africa and Central Africa. These countries have historical relations with France, and the CFA francs were previously pegged to the French franc. They are now pegged to the euro through bilateral agreements with France. The euro area has no obligation to support the exchange rate with the CFA francs.
-The Comorian franc (Comoros Islands) and the Cape Verde escudo (Cape Verde) were previously linked to the French franc and Portuguese escudo, respectively. They are now linked to the euro through bilateral agreements. The euro area has no obligation to support these currency pegs.
Examples of currencies linked unilaterally to the euro
-Several countries link their national currency directly to the euro. This is achieved through supporting an exchange rate against the euro that is only allowed to fluctuate within defined limits. The third countries’ monetary authorities support this exchange-rate peg on their own by intervening in currency markets. The euro area has no agreements or obligations to support these currencies. Such unilateral links with the euro exist, for example, in the former Yugoslav Republic of Macedonia, Serbia and Tunisia.-A number of EU countries which are not yet part of the euro area – Czech Republic, Croatia, Romania – also manage their currencies in this way. And Hungary even shadows the Exchange Rate Mechanism (ERM II) by pegging the forint and applying a ±15% fluctuation band.-Bulgaria and Bosnia and Herzegovina maintain euro-based currency boards in charge of supporting the fixed foreign exchange rate, to which the normal objectives of central banks are subordinated.-Other countries link their currencies to the euro through a ‘currency basket’. In this case, the exchange rate of the national currency is linked to a fictitious exchange rate from a ‘basket’ of other currencies, such as the euro, the US dollar, and the Japanese yen. Countries that use such ‘currency baskets’ are Botswana, Jordan, Libya, Morocco, Russia, Seychelles, and Vanuatu.
International financial markets
The euro is a key global currency which has an important role in international financial markets. It is used widely by third-country governments and private actors worldwide as a currency of choice for their reserves, their borrowing and for trade.The euro is an attractive currency for the international financial markets because of the size of the euro-area economy, its openness to trade with the world, its commitment to prudent economic management, and the clear mission of the European Central Bank to run a monetary policy that ensures price stability.These factors give international financial markets the confidence to use the euro widely, alongside the US dollar, in a range of financial instruments:
International debt markets
-Third countries wishing to raise large amounts of money can do this by issuing bonds that are repaid with interest at a fixed future date. Large institutional investors, such as pension funds, usually buy such bonds because they are seen as low-risk investments. When a country issues bonds in a foreign currency, they are known as sovereign bonds. Large private corporations can also issue "corporate bonds" in a foreign currency to fund their operations and investments. Such bonds are traded on "international debt markets". At the end of 2006, the share of euro-denominated debt in international debt markets was 31.4%, while the US dollar comprised 44.1%
International loan and deposit markets
-Banks make loans and accept deposits across the world in various currencies which form the international loan and deposit markets. This lending and borrowing involves countries and corporations worldwide, for example a corporation borrowing to fund new investments in a developing country, or a government placing oil revenues on deposit with a bank until needed. The euro is playing an important role in these markets. In December 2006, euro-area bank lending to non-bank institutions outside the euro area was denominated at 36.3% in euro and 44.8% in US dollars.
Foreign exchange markets
-Foreign exchange (forex) markets are those where currencies are traded for others. The euro has become the second most actively traded currency in forex markets. At the beginning of 2007, it was a counterpart in around 37% of the daily transactions, compared to a share of 86.5% for the US dollar, 16.5% for the Japanese yen and 15% for the pound sterling (both sides of transactions are counted so that shares add up to 200%).
International trade
-The euro is increasingly used by euro-area Member States as the currency of settlement and invoicing in international trade. In the first quarter of 2006, in most euro-area countries where data was available the average share of the euro in euro-area exports of goods to countries outside the EU was around 50% - slightly surpassing the US dollar, which is used in around 44% of the transactions in terms of value - whereas in imports of goods the euro's share was around 35%. To a much smaller extent, the euro is beginning to be used as a 'vehicle currency' for trade between third countries, although the US dollar is still dominant in this. As the euro area constitutes the largest trading block and one of the most open economies in the world, the use of the euro in international trade can be expected to grow in the future.
Reserves and anchors
-As a major currency, the euro is used as an "anchor currency" by some third countries to manage their own exchange-rate regimes. For example, Russia uses the euro as part of a basket of currencies for the daily management of the rouble exchange rate. In addition, the euro is increasingly held as a reserve currency by third countries because they have confidence it will maintain its value. The share of the euro in global foreign exchange reserves is over 25% (mid 2007) and close to 29% in developing countries, which have increased their reserves significantly from 18% held in 1999. In comparison, the US dollar accounts for around 65% and the pound sterling for around 4.5% of global currency reserves.
The establishment of the euro area also created the second largest currency area in the world. On international markets, the euro is the second most important international currency after the US dollar. The size and stability of the euro-area economy and the liquidity of its financial markets make holding and using the euro attractive to third countries as an alternative to US dollars - helping reduce the risks of currency fluctuations and contributing to global economic stability. The euro-area Member States also benefit, as trading in euro becomes more widespread. Further, the importance of the euro gives the euro area a stronger voice on the international stage.
Factsheet-Special Drawing Rights (SDRs)-April 9, 2015
The SDR is an international reserve asset, created by the IMF in 1969 to supplement its member countries’ official reserves. Its value is based on a basket of four key international currencies, and SDRs can be exchanged for freely usable currencies. As of March 17, 2015, 204 billion SDRs were created and allocated to members (equivalent to about $280 billion).
The role of the SDR
The SDR was created by the IMF in 1969 to support the Bretton Woods fixed exchange rate system. A country participating in this system needed official reserves—government or central bank holdings of gold and widely accepted foreign currencies—that could be used to purchase the domestic currency in foreign exchange markets, as required to maintain its exchange rate. But the international supply of two key reserve assets—gold and the U.S. dollar—proved inadequate for supporting the expansion of world trade and financial development that was taking place. Therefore, the international community decided to create a new international reserve asset under the auspices of the IMF.
Only a few years after the creation of SDRs, the Bretton Woods system collapsed and the major currencies shifted to a floating exchange rate regime. In addition, the growth in international capital markets facilitated borrowing by creditworthy governments. Both of these developments lessened the need for SDRs. However, more recently, the 2009 SDR allocations totaling SDR 182.6 billion have played a critical role in providing liquidity to the global economic system and supplementing member countries’ official reserves amid the global financial crisis.
The SDR is neither a currency, nor a claim on the IMF. Rather, it is a potential claim on the freely usable currencies of IMF members. Holders of SDRs can obtain these currencies in exchange for their SDRs in two ways: first, through the arrangement of voluntary exchanges between members; and second, by the IMF designating members with strong external positions to purchase SDRs from members with weak external positions. In addition to its role as a supplementary reserve asset, the SDR serves as the unit of account of the IMF and some other international organizations.
Basket of currencies determines the value of the SDR
The value of the SDR was initially defined as equivalent to 0.888671 grams of fine gold—which, at the time, was also equivalent to one U.S. dollar. After the collapse of the Bretton Woods system in 1973, the SDR was redefined as a basket of currencies. Today the SDR basket consists of the euro, Japanese yen, pound sterling, and U.S. dollar. The value of the SDR in terms of the U.S. dollar is determined daily and posted on the IMF’s website. It is calculated as the sum of specific amounts of the four basket currencies valued in U.S. dollars, on the basis of exchange rates quoted at noon each day in the London market.
The basket composition is reviewed every five years by the Executive Board, or earlier if the IMF finds changed circumstances warrant an earlier review, to ensure that it reflects the relative importance of currencies in the world’s trading and financial systems. In the most recent review (in November 2010), the weights of the currencies in the SDR basket were revised based on the value of the exports of goods and services, and the amount of reserves denominated in the respective currencies that were held by other members of the IMF. These changes became effective on January 1, 2011. In October 2011, the IMF Executive Board discussed possible options for broadening the SDR currency basket. Most directors held the view that the current criteria for SDR basket selection remained appropriate. The next review is currently scheduled to take place by the end of 2015.
The SDR interest rate
The SDR interest rate provides the basis for calculating the interest charged to borrowing members, and the interest paid to members for the use of their resources for regular (non-concessional) IMF loans. It is also the interest paid to members on their SDR holdings and charged on their SDR allocation. The SDR interest rate is determined weekly and is based on a weighted average of representative interest rates on short-term debt instruments in the money markets of the SDR basket currencies.
SDR allocations to IMF members
Under its Articles of Agreement (Article XV, Section 1, and Article XVIII), the IMF may allocate SDRs to member countries in proportion to their IMF quotas. Such an allocation provides each member with a costless, unconditional international reserve asset. The SDR mechanism is self-financing and levies charges on allocations which are then used to pay interest on SDR holdings. If a member does not use any of its allocated SDR holdings, the charges are equal to the interest received. However, if a member's SDR holdings rise above its allocation, it effectively earns interest on the excess. Conversely, if it holds fewer SDRs than allocated, it pays interest on the shortfall. The Articles of Agreement also allow for cancellations of SDRs, but this provision has never been used. The IMF cannot allocate SDRs to itself or to other prescribed holders.
General allocations of SDRs have to be based on a long-term global need to supplement existing reserve assets. Decisions on general allocations are made for successive basic periods of up to five years, although general SDR allocations have been made only three times. The first allocation was for a total amount of SDR 9.3 billion, distributed in 1970-72, the second—for SDR 12.1 billion—distributed in 1979-81, and the third—for SDR 161.2 billion—was made on August 28, 2009.
Separately, the Fourth Amendment to the Articles of Agreement became effective August 10, 2009 and provided for a special one-time allocation of SDR 21.5 billion. The purpose of the Fourth Amendment was to enable all members of the IMF to participate in the SDR system on an equitable basis and rectify the fact that countries that joined the IMF after 1981—more than one fifth of the current IMF membership—never received an SDR allocation until 2009.
The 2009 general and special SDR allocations together raised total cumulative SDR allocations to SDR 204 billion.
Buying and selling SDRs
IMF members often need to buy SDRs to discharge obligations to the IMF, or they may wish to sell SDRs in order to adjust the composition of their reserves. The IMF may act as an intermediary between members and prescribed holders to ensure that SDRs can be exchanged for freely usable currencies. For more than two decades, the SDR market has functioned through voluntary trading arrangements. Under these arrangements a number of members and one prescribed holder have volunteered to buy or sell SDRs within limits defined by their respective arrangements. Following the 2009 SDR allocations, the number and size of the voluntary arrangements has been expanded to ensure continued liquidity of the voluntary SDR market. The number of voluntary SDR trading arrangements now stands at 32, including 19 new arrangements since the 2009 SDR allocations.
In the event that there is insufficient capacity under the voluntary trading arrangements, the IMF can activate the designation mechanism. Under this mechanism, members with sufficiently strong external positions are designated by the IMF to buy SDRs with freely usable currencies up to certain amounts from members with weak external positions. This arrangement serves as a backstop to guarantee the liquidity and the reserve asset character of the SDR.
China-IMF talks underway to endorse yuan as global reserve currency-March 12, 2015, 12:12 pm
Including the yuan in the SDR basket would aid China’s attempts to diminish the dollar’s dominance in global trade and finance [Xinhua]-China is pushing for the International Monetary Fund to endorse the Chinese yuan as a global reserve currency alongside the dollar and euro.A senior Chinese central bank official said Thursday that the country is “actively communicating” with the IMF on the possibility of including the yuan, or RMB, in the basket of the Special Drawing Rights (SDRs).Including the yuan in the SDR system would allow the IMF to recognize the ascent of the world’s second-biggest economy while aiding China’s attempts to diminish the dollar’s dominance in global trade and finance.“We hope the IMF can fully take into account the progress of RMB internationalization, to include RMB into the basket underlining the SDR in foreseeable, near future,” said Yi Gang, vice governor of the People’s Bank of China.However, China will be patient until conditions are ripe, Yi said at a press conference on the sidelines of the ongoing annual parliamentary session.In late 2015, the IMF will conduct its next twice-a-decade review of the basket of currencies its members can count toward their official reserves.SDRs are international foreign exchange reserve assets. Allocated to nations by the IMF, an SDR represents a claim to foreign currencies for which it may be exchanged in times of need.Although denominated in US dollars, the nominal value of an SDR is derived from a basket of currencies, with, specifically, a fixed amount of Japanese yen, US dollars, British pounds and euros, without RMB.China would need to satisfy the Washington-based lender’s economic benchmarks and get the support of most of the other 187 member countries.To become a currency included in the SDR basket, the trade volume of goods and services behind that currency will be evaluated, the Chinese Central Bank official explained on Thursday, stressing that RMB has no problem in this regard. But he said views are divided on whether the RMB is a freely usable currency.“No matter whether and when the RMB will be included in the SDR basket, China will push on with its financial sector reform and opening-up,” Yi said.The yuan became the world’s No. 2 currency for trade finance globally in 2013, and overtook the Canadian and Australian dollars to enter the top five world payment currencies in 2014, according to global transaction services organization SWIFT.China said the yuan has also been used as a reserve currency in some countries and regions.
Yuan seen taking 12.5% of global reserves by 2030: HSBC survey-Reuters Apr 13, 2015, 11.35AM IST
(The survey was carried out…)-HONG KONG: China's yuan is expected to take a 12.5 percent market share of global reserves by 2030, an HSBC survey of global reserve managers showed, suggesting that Beijing's stepped up efforts to open its markets to foreign investments will have some pay off.The survey was carried out in March and drew on responses from 72 central banks which manages $5.9 trillion in reserves, or 48 percent of global reserves.The yuan's rise will be a gradual one, accounting for 2.9 percent of global reserves by the end of 2015, 6.9 percent by 2020, 10.4 percent by 2025 and 12.5 percent by 2030, the survey revealed.Thirty-five central banks, or 53 percent of respondents, said they were either investing or considering investing in yuan assets now, but channels to China's domestic markets were limited for them."Investment opportunities are still limited as regards liquidity of markets and diversification within the market mainly due to credit risk considerations," said a European reserve manager.Foreign central banks have been buying Chinese assets in the onshore interbank bond market as well as in the offshore dim sum market. Their purchases are usually biased toward high-quality investment-grade bonds issued by central governments or policy banks.China sent a strong message to the International Monetary Fund (IMF) in March urging that the yuan be included in its special drawing rights (SDR) basket, promising it would strive for further reforms and aim for full convertibility this year.Beijing has also taken steps to open up its markets to foreign capital and has been pushing for the increased use of the yuan for trade and investment with a broader goal of eventually putting its currency on par with the U.S. dollar.So far, more than 50 foreign central banks have started to use the yuan or keep it as part of their foreign reserves, according to industry estimate.
China has signed currency swaps with 31 countries worth 3,120 billion yuan to encourage bilateral trade and investment.Although central banks already started to have exposure to the renminbi, how fast it becomes a large reserve currency will depend on growth and stability of the economy, pace of the internationalisation and deepening of China's financial markets, said a surveyed reserve manager.
