Explore the Category

The rise of the Renminbi: Will China’s Yuan become a global reserve currency?

27 July 2015

In recent months, China has stepped up a longstanding campaign for its currency (officially called the renminbi [RMB] but also referred to as the yuan), to be included as a part of the composition of the International Monetary Fund’s (IMF’s) Special Drawing Rights (SDR). While the media is abuzz with the potential market implications of China’s currency achieving status as an international reserve currency—one which can be held by central banks and other major financial institutions to pay off international debt obligations—at one level, the issue is somewhat arcane. SDRs are a synthetic quasi-currency made up of a basket of widely traded currencies. They are used by the IMF for accounting purposes and as a medium for allocating assets among member countries. They play almost no role in private trade and finance. They do, however, provide the IMF’s approval that a currency has the qualities necessary to be an international reserve currency. Indeed, SDR currencies are automatically regarded as acceptable reserve currencies, whereas other currencies have to meet criteria for full convertibility to have the same status.

Too small to have a global impact

21 July 2015

In what has been arguably the biggest economic fallout from the global financial crisis, Greece has been on tender hooks since the beginning of June with its economy teetering on the brink of bankruptcy. Only all night negotiations with other members of the European Union (EU) on 12 July has saved the country, but for how long has the country been saved?

Greece vs Germany: A bare-knuckled battle

20 July 2015

In a last ditch attempt to buttress Athens from an economic meltdown, European finance ministers have approved a provisional loan of €7 billion ($7.6 billion) meant for the country’s most critical debts. The European Central Bank will also provide assistance of €900 million in emergency funding into Greek banks.

Eurozone looks to heal its Greek crisis rifts

16 July 2015

Overall it seems to us that the new bailout deal agreed to by the Greek government and its creditors on Monday (July 13), and now approved by the Greek parliament, is worse for the Greek people as it is likely to lead to further austerity than the one put before the Greek voters—and rejected—in a referendum at the beginning of the month.

quick poll

Question

If you had to choose one approach to protect your hard-earned investment cash from today’s market madness, which would it be?

Answer