https://voiceofpeopletoday.com/central-bank-germany-france-reported-storage-gold-reserves-yuan/
Central Bank of Germany and France reported the storage of gold reserves in yuan
January 16, 2018
epa04880928 Chinese 100 Yuan or Renminbi (RMB) are arranged for photograph in Beijing, China, 12 August 2015. The yuan has sunk to the lowest trading price in a decade after China's central bank devalued the currency on 11 August to aid a struggling economy. The People's Bank of China unexpectedly adjusted its daily reference exchange rate by a further 1.6 per cent, setting it at 6.3306 to the US dollar. EPA/WU HONG Dostawca: PAP/EPA.
Following a statement by one of the members of the leadership of the central bank of Germany about keeping part of the country’s foreign exchange reserves in Chinese yuan as a measure for diversification, a similar statement was made by the Bank of France.
The statement of the French Central Bank notes that most of the reserves remain in US dollars, but the yuan is included in the “limited list of currencies”, which also contain foreign exchange reserves. This was reported by the Reuters agency with reference to the statement of the Bank of France.
“The bulk of foreign exchange reserves remain in US dollars, with diversification into a limited number of international currencies, such as the Chinese yuan.”
Read More:
In an interview with Bloomberg on the sidelines of the forum, he said that the decision to include the yuan in the number of currencies in which the currency reserves of the FRG are stored was “about mid-2017”
TweetShareSubscribe
https://seekingalpha.com/instablog/...any-france-add-chinese-yuan-currency-reserves
You Yuan-Na Bet? Germany, France Add Chinese Yuan To Currency Reserves
Jan. 15, 2018 4:29 PM ET|Includes: CNY, CYB, CurrencyShares Euro Trust ETF (FXE)
Last week, amid “rumors” that China was considering “halting” purchases of U.S. Treasurys, Bloomberg’s Richard Jones and later BofAML suggested the timing seemed awfully convenient.
“The conspiracy theorist in me thinks the timing of this announcement is not accidental, and that the fact that Emmanuel Macron has been in China this week is not a coincidence,” Jones wrote just minutes after the original Bloomberg story hit early Wednesday morning in the U.S.
A couple of hours later, BofAML noted that “the announcement is timely as it coincides with President Macron’s official visit [and] with politics in the Euro Area on a more stable footing, improving macro fundamentals and the end of ECB QE in sight, the EUR as a reserve currency appears to be an increasingly attractive long-term proposition.”
Well in light of the above, it’s worth noting that earlier today, Bundesbank board member Andreas Dombret told an audience in Hong Kong that Germany will be adding the yuan to its reserves.
“The renminbi is used increasingly as part of central banks’ foreign-exchange reserves — for example, the ECB included the RMB but also other European central banks did so,” he said.
And there's much more. Here's the full story:
https://heisenbergreport.com/2018/0...france-add-chinese-yuan-to-currency-reserves/
https://www.reuters.com/article/bun...ves-partly-held-in-chinese-yuan-idUSL8N1PA4WJ
Bank of France currency reserves partly held in Chinese yuan
Reuters Staff
1 Min Read
“Currency reserves remain in their vast majority invested in U.S. dollar, with a diversification towards a limited number of international currencies such as the Chinese renminbi,” the bank said in a statement.
The yuan leapt to its strongest level in more than two years against the dollar on Monday, buoyed by the Bundesbank’s comment.
The French central bank said it would not reveal a breakdown of its reserves, and did not say when it first included the yuan. (Reporting by Yann Le Guernigou and Michel Rose; editing by John Stonestreet)
Our Standards:The Thomson Reuters Trust Principles.
https://www.ft.com/content/71257a3c-f9ca-11e7-9b32-d7d59aace167
Bundesbank to include renminbi in its currency reserves
China’s currency rises after decision by Germany’s central bank
yesterday 7
The renminbi rose after Germany’s central bank said it would include the currency in its reserves, a move seen as boosting the internationalisation of China’s currency.
Andreas Dombret, a member of Deutsche Bundesbank’s executive board, said at the Asian Financial Forum in Hong Kong on Monday that the central bank had “decided to include the RMB in our currency reserves”.
He said: “The RMB is used increasingly as part of central banks’ foreign exchange reserves; for example, the European Central Bank included the RMB [as a reserve currency].”
The move comes after the renminbi became the fifth currency in 2016 to join the International Monetary Fund’s Special Drawing Right (SDR) basket, which is a collection of reserve currencies that serve as an alternative to the US dollar.
The Bundesbank’s six-member board took the decision to invest in renminbi assets in mid-2017, but it was not publicly announced at the time. No investments have been made yet; preparations for purchases are continuing.
The inclusion in the German central bank’s reserves basket underscored China’s increasing prominence in the global financial landscape, and reflected policies aimed at making the currency more freely tradable internationally.
The ECB began to buy renminbi assets last year, announcing in June that it had made €500m worth of investments in the Chinese currency.
Mr Dombret said: “The notable development from the European point of view over the past few years has been the growing international role of the RMB in global financial markets.”
Joachim Wuermeling, the Bundesbank’s board member responsible for its €167bn reserves stockpile, said on Monday: “The decision to accept the yuan is part of a long-term diversification strategy and reflects the increased role of the Chinese currency in the global financial system. In addition to the dollar and the yen, we have been investing in Australian dollars since 2013 and are looking to invest in other currencies.”
Last week, the People’s Bank of China decided to drop a mechanism it recently created to support the renminbi and safeguard it against capital flight, in a sign of rising confidence in the currency. Mr Dombret said the move was “something which we welcome very much”.
Hammond opens London forex markets to China banks
Speaking at the same conference, Stuart Gulliver, chief executive of HSBC, said that the internationalisation of the renminbi would gain further support from the Belt and Road trade initiative, which calls for building infrastructure links to bind China more closely with central and Southeast Asia, the Middle East, Europe and Africa, and the development of the green bond market in Asia.
Mr Gulliver said: “Both of these initiatives will fuel the internationalisation of the RMB. The RMB . . . already has some momentum in terms of its inclusion within the SDR. As we continue to see the Belt and Road develop, and as we continue to see green finance develop, a lot of this will be done in RMB and this will increase the usage of RMB even further.”
But the internationalisation of China’s currency still faces significant headwinds.
“The level of RMB reserves, however, is still small compared to USD or EU,” said Mr Dombret. “It proceeds in a number of small steps, but some of those small steps include a few steps backwards. More recently, the RMB internationalisation process seems to have lost a little bit of momentum.”
Measures over the past 18 months to restrict capital outflows from China have been among factors hindering the currency’s internationalisation.
Mr Dombret added that the exchange rate framework underpinning the renminbi lacked transparency while some observers, also from the EU, had the impression that it was dominated by discrete policy interventions from China.
The onshore renminbi, which is permitted to trade 2 per cent either side of a daily fix set by the People’s Bank of China, was as much as 0.7 per cent stronger against the dollar on Monday at Rmb6.4186, while the offshore renminbi, which is not restricted by the trading band, was 0.5 per cent stronger at Rmb6.4260, levels not seen since late 2015.
Will the renminbi ever really be a reserve currency?
Copyright The Financial Times Limited 2018. All rights reserved.
http://www.scmp.com/news/china/econ...an-central-bank-include-yuan-its-reserve-pile
German central bank to include yuan in its reserve pile
Bundesbank board member says it will follow in footsteps of ECB but doesn’t indicate how much it will invest
PUBLISHED : Monday, 15 January, 2018, 4:15pm
UPDATED : Monday, 15 January, 2018, 11:28pm
Comments: 2
Sidney Leng
[email protected]
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Deutsche Bundesbank, the central bank of Germany, has decided to include the yuan in its reserves, a board member of the bank said on Monday in an endorsement of the Chinese currency’s international clout.
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Bundesbank board member Andreas Dombret told the Asian Financial Forum in Hong Kong that the German central bank was following in the footsteps of the European Central Bank by diversifying part of its reserves into yuan, also known as renminbi.
“The [renminbi] is used increasingly as part of central banks’ foreign exchange reserves,” Dombret said. “For example, the European Central Bank included RMB but also other European central banks did so. And I can today say that also the German central bank has decided to include RMB in our currency reserves.”
Yuan strengthens the most in 3 months on better-than-expected trade data
He did not elaborate on the amount or percentage of the central bank’s planned yuan assets.
The ECB, of which Germany is a leading authority, last year invested €500 million (US$609.8 million) into yuan.
The International Monetary Fund included the yuan in its basket of special drawing rights in 2016, giving it a nominal status as an international reserve currency.
However, Beijing’s ambition of the yuan becoming an international currency suffered a setback when the Chinese government started to impose draconian curbs on capital outflows.
The German central bank’s recognition of the yuan’s “hard currency” status could offer fresh support for its value. The yuan exchange rate in both onshore and offshore markets has hit its strongest levels against the US dollar since the end of 2015, partly thanks to the weakness of the greenback.
China’s central bank eases exchange rate setting mechanism
While China is the world’s second biggest economy, its currency has a very marginal role in international use. According to the latest figures from the IMF, the share of yuan in the world’s foreign exchange reserves was 1.12 per cent in the third quarter, compared with 1.08 per cent in the previous quarter. In comparison, the US dollar accounted for 63.5 per cent of all reserves, followed by the euro at 20 per cent.
Yin Yong, deputy governor of the People’s Bank of China, was quoted by the official China Securities Journal as saying on Monday that the yuan had a long way to go before it became a global currency, and China would take a long-term strategic view of the yuan’s internationalisation.
“The international status of the yuan doesn’t match China’s weighting in the global economy,” Yin was quoted as saying. “The market also has huge demand for yuan assets.”
This article appeared in the South China Morning Post print edition as: german central bank taps into yuan
http://www.france24.com/en/20180116-germany-add-chinas-yuan-currency-reserves
Germany to add China's yuan to currency reserves
© AFP | The yuan has gained increasing global clout in recent years, with the International Monetary Fund in 2016 including it in its elite "special drawing rights" reserve currency basket
BEIJING (AFP) -
Germany's central bank has said it will include China's yuan in its reserves, giving another boost to Beijing's drive to internationalise the currency and helping send the unit to two year highs.
The Bundesbank said its board had decided in July to invest in the renminbi, as it is also known, to take account of its growing importance globally, though it did not say when it would begin to include it or how much it would purchase.
"The decision to accept the renminbi is part of a long-term diversification strategy and reflects the growing role of the Chinese currency in the world financial system," Bundesbank board member Joachim Wuermeling told AFP on Monday.
The German central bank regularly reviews the composition of its currency reserves "by weighing risks and benefits", Wuermeling said.
"In addition to dollars and yen, (the bank) has invested in Australian dollars since 2013 and seeks to invest in other currencies."
The move comes after the European Central Bank in June converted 500 million euros' worth of its dollar reserves into yuan.
China was Germany's top trade partner in 2016, ranking first in the European country's imports and fourth as an export destination.
The Bundesbank's currency reserves totalled some 170 billion euros ($210 billion) in November.
The yuan has gained increasing global clout in recent years and in September 2016 it joined the dollar, pound, yen and euro in the IMF's elite "special drawing rights" reserve currency basket.
It strengthened to 6.4138 against the dollar on Monday, its highest level since December 2015, according to China's Foreign Exchange Trade System, but weakened slightly to 6.4319 on Tuesday.
The unit has rallied from lows close to 7.0 against the greenback seen at the turn of the year, with the dollar also coming under pressure from most other currencies.
China's central bank only allows the tightly controlled yuan to rise or fall two percent on either side of a daily reference rate to prevent volatility but it takes into account market pressures when making its decision.
But the latest rise could lead officials to intervene, analysts say, to prevent the currency becoming too expensive.
Ding Shuang, chief economist for Greater China and North Asia at Standard Chartered Plc in Hong Kong, said: "Policy reactions may include outright interventions right before close, or a relaxation of outflow control measures to release the yuan appreciation pressure.
"The government will likely gradually expand the range each year, paving the way for a lightly managed float in two to three years."
The yuan's weakness against the dollar has been a sensitive issue with the United States, with President Donald Trump in the past hitting out at what he calls unfair trade practices by China aimed at giving their exporters an advantage over US firms.
© 2018 AFP
Central Bank of Germany and France reported the storage of gold reserves in yuan
January 16, 2018
epa04880928 Chinese 100 Yuan or Renminbi (RMB) are arranged for photograph in Beijing, China, 12 August 2015. The yuan has sunk to the lowest trading price in a decade after China's central bank devalued the currency on 11 August to aid a struggling economy. The People's Bank of China unexpectedly adjusted its daily reference exchange rate by a further 1.6 per cent, setting it at 6.3306 to the US dollar. EPA/WU HONG Dostawca: PAP/EPA.
Following a statement by one of the members of the leadership of the central bank of Germany about keeping part of the country’s foreign exchange reserves in Chinese yuan as a measure for diversification, a similar statement was made by the Bank of France.
The statement of the French Central Bank notes that most of the reserves remain in US dollars, but the yuan is included in the “limited list of currencies”, which also contain foreign exchange reserves. This was reported by the Reuters agency with reference to the statement of the Bank of France.
“The bulk of foreign exchange reserves remain in US dollars, with diversification into a limited number of international currencies, such as the Chinese yuan.”
Read More:
- Central Bank of Austria called for regulating crypto-currencies
- Gold falls on concern over Europe and stocks rise
- Gold rose in price to a maximum for 4 months because of China’s plans for US Treasuries
In an interview with Bloomberg on the sidelines of the forum, he said that the decision to include the yuan in the number of currencies in which the currency reserves of the FRG are stored was “about mid-2017”
TweetShareSubscribe
https://seekingalpha.com/instablog/...any-france-add-chinese-yuan-currency-reserves
You Yuan-Na Bet? Germany, France Add Chinese Yuan To Currency Reserves
Jan. 15, 2018 4:29 PM ET|Includes: CNY, CYB, CurrencyShares Euro Trust ETF (FXE)
Last week, amid “rumors” that China was considering “halting” purchases of U.S. Treasurys, Bloomberg’s Richard Jones and later BofAML suggested the timing seemed awfully convenient.
“The conspiracy theorist in me thinks the timing of this announcement is not accidental, and that the fact that Emmanuel Macron has been in China this week is not a coincidence,” Jones wrote just minutes after the original Bloomberg story hit early Wednesday morning in the U.S.
A couple of hours later, BofAML noted that “the announcement is timely as it coincides with President Macron’s official visit [and] with politics in the Euro Area on a more stable footing, improving macro fundamentals and the end of ECB QE in sight, the EUR as a reserve currency appears to be an increasingly attractive long-term proposition.”
Well in light of the above, it’s worth noting that earlier today, Bundesbank board member Andreas Dombret told an audience in Hong Kong that Germany will be adding the yuan to its reserves.
“The renminbi is used increasingly as part of central banks’ foreign-exchange reserves — for example, the ECB included the RMB but also other European central banks did so,” he said.
And there's much more. Here's the full story:
https://heisenbergreport.com/2018/0...france-add-chinese-yuan-to-currency-reserves/
https://www.reuters.com/article/bun...ves-partly-held-in-chinese-yuan-idUSL8N1PA4WJ
Bank of France currency reserves partly held in Chinese yuan
Reuters Staff
1 Min Read
“Currency reserves remain in their vast majority invested in U.S. dollar, with a diversification towards a limited number of international currencies such as the Chinese renminbi,” the bank said in a statement.
The yuan leapt to its strongest level in more than two years against the dollar on Monday, buoyed by the Bundesbank’s comment.
The French central bank said it would not reveal a breakdown of its reserves, and did not say when it first included the yuan. (Reporting by Yann Le Guernigou and Michel Rose; editing by John Stonestreet)
Our Standards:The Thomson Reuters Trust Principles.
https://www.ft.com/content/71257a3c-f9ca-11e7-9b32-d7d59aace167
Bundesbank to include renminbi in its currency reserves
China’s currency rises after decision by Germany’s central bank
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yesterday 7
The renminbi rose after Germany’s central bank said it would include the currency in its reserves, a move seen as boosting the internationalisation of China’s currency.
Andreas Dombret, a member of Deutsche Bundesbank’s executive board, said at the Asian Financial Forum in Hong Kong on Monday that the central bank had “decided to include the RMB in our currency reserves”.
He said: “The RMB is used increasingly as part of central banks’ foreign exchange reserves; for example, the European Central Bank included the RMB [as a reserve currency].”
The move comes after the renminbi became the fifth currency in 2016 to join the International Monetary Fund’s Special Drawing Right (SDR) basket, which is a collection of reserve currencies that serve as an alternative to the US dollar.
The Bundesbank’s six-member board took the decision to invest in renminbi assets in mid-2017, but it was not publicly announced at the time. No investments have been made yet; preparations for purchases are continuing.
The inclusion in the German central bank’s reserves basket underscored China’s increasing prominence in the global financial landscape, and reflected policies aimed at making the currency more freely tradable internationally.
The ECB began to buy renminbi assets last year, announcing in June that it had made €500m worth of investments in the Chinese currency.
Mr Dombret said: “The notable development from the European point of view over the past few years has been the growing international role of the RMB in global financial markets.”
Joachim Wuermeling, the Bundesbank’s board member responsible for its €167bn reserves stockpile, said on Monday: “The decision to accept the yuan is part of a long-term diversification strategy and reflects the increased role of the Chinese currency in the global financial system. In addition to the dollar and the yen, we have been investing in Australian dollars since 2013 and are looking to invest in other currencies.”
Last week, the People’s Bank of China decided to drop a mechanism it recently created to support the renminbi and safeguard it against capital flight, in a sign of rising confidence in the currency. Mr Dombret said the move was “something which we welcome very much”.
Hammond opens London forex markets to China banks
Speaking at the same conference, Stuart Gulliver, chief executive of HSBC, said that the internationalisation of the renminbi would gain further support from the Belt and Road trade initiative, which calls for building infrastructure links to bind China more closely with central and Southeast Asia, the Middle East, Europe and Africa, and the development of the green bond market in Asia.
Mr Gulliver said: “Both of these initiatives will fuel the internationalisation of the RMB. The RMB . . . already has some momentum in terms of its inclusion within the SDR. As we continue to see the Belt and Road develop, and as we continue to see green finance develop, a lot of this will be done in RMB and this will increase the usage of RMB even further.”
But the internationalisation of China’s currency still faces significant headwinds.
“The level of RMB reserves, however, is still small compared to USD or EU,” said Mr Dombret. “It proceeds in a number of small steps, but some of those small steps include a few steps backwards. More recently, the RMB internationalisation process seems to have lost a little bit of momentum.”
Measures over the past 18 months to restrict capital outflows from China have been among factors hindering the currency’s internationalisation.
Mr Dombret added that the exchange rate framework underpinning the renminbi lacked transparency while some observers, also from the EU, had the impression that it was dominated by discrete policy interventions from China.
The onshore renminbi, which is permitted to trade 2 per cent either side of a daily fix set by the People’s Bank of China, was as much as 0.7 per cent stronger against the dollar on Monday at Rmb6.4186, while the offshore renminbi, which is not restricted by the trading band, was 0.5 per cent stronger at Rmb6.4260, levels not seen since late 2015.
Will the renminbi ever really be a reserve currency?
Copyright The Financial Times Limited 2018. All rights reserved.
http://www.scmp.com/news/china/econ...an-central-bank-include-yuan-its-reserve-pile
German central bank to include yuan in its reserve pile
Bundesbank board member says it will follow in footsteps of ECB but doesn’t indicate how much it will invest
PUBLISHED : Monday, 15 January, 2018, 4:15pm
UPDATED : Monday, 15 January, 2018, 11:28pm
Comments: 2
Sidney Leng
[email protected]
http://twitter.com/SidneyLeng
0Share
2
PrintEmail
Related topics
China Economy Yuan
Related Articles
Economy
Chinese rating agency sees US as bigger debt risk than Botswana
16 Jan 2018
Economy
Why Chinese officials are coming clean over cooking the books
16 Jan 2018
Economy
Chinese state enterprises post record level of profits
16 Jan 2018
Deutsche Bundesbank, the central bank of Germany, has decided to include the yuan in its reserves, a board member of the bank said on Monday in an endorsement of the Chinese currency’s international clout.
This Week in Asia
Get updates direct to your inbox
E-mail *
By registering you agree to our T&Cs & Privacy Policy
Bundesbank board member Andreas Dombret told the Asian Financial Forum in Hong Kong that the German central bank was following in the footsteps of the European Central Bank by diversifying part of its reserves into yuan, also known as renminbi.
“The [renminbi] is used increasingly as part of central banks’ foreign exchange reserves,” Dombret said. “For example, the European Central Bank included RMB but also other European central banks did so. And I can today say that also the German central bank has decided to include RMB in our currency reserves.”
Yuan strengthens the most in 3 months on better-than-expected trade data
He did not elaborate on the amount or percentage of the central bank’s planned yuan assets.
The ECB, of which Germany is a leading authority, last year invested €500 million (US$609.8 million) into yuan.
The International Monetary Fund included the yuan in its basket of special drawing rights in 2016, giving it a nominal status as an international reserve currency.
However, Beijing’s ambition of the yuan becoming an international currency suffered a setback when the Chinese government started to impose draconian curbs on capital outflows.
The German central bank’s recognition of the yuan’s “hard currency” status could offer fresh support for its value. The yuan exchange rate in both onshore and offshore markets has hit its strongest levels against the US dollar since the end of 2015, partly thanks to the weakness of the greenback.
China’s central bank eases exchange rate setting mechanism
While China is the world’s second biggest economy, its currency has a very marginal role in international use. According to the latest figures from the IMF, the share of yuan in the world’s foreign exchange reserves was 1.12 per cent in the third quarter, compared with 1.08 per cent in the previous quarter. In comparison, the US dollar accounted for 63.5 per cent of all reserves, followed by the euro at 20 per cent.
Yin Yong, deputy governor of the People’s Bank of China, was quoted by the official China Securities Journal as saying on Monday that the yuan had a long way to go before it became a global currency, and China would take a long-term strategic view of the yuan’s internationalisation.
“The international status of the yuan doesn’t match China’s weighting in the global economy,” Yin was quoted as saying. “The market also has huge demand for yuan assets.”
This article appeared in the South China Morning Post print edition as: german central bank taps into yuan
http://www.france24.com/en/20180116-germany-add-chinas-yuan-currency-reserves
Germany to add China's yuan to currency reserves
- inShare
© AFP | The yuan has gained increasing global clout in recent years, with the International Monetary Fund in 2016 including it in its elite "special drawing rights" reserve currency basket
BEIJING (AFP) -
Germany's central bank has said it will include China's yuan in its reserves, giving another boost to Beijing's drive to internationalise the currency and helping send the unit to two year highs.
The Bundesbank said its board had decided in July to invest in the renminbi, as it is also known, to take account of its growing importance globally, though it did not say when it would begin to include it or how much it would purchase.
"The decision to accept the renminbi is part of a long-term diversification strategy and reflects the growing role of the Chinese currency in the world financial system," Bundesbank board member Joachim Wuermeling told AFP on Monday.
The German central bank regularly reviews the composition of its currency reserves "by weighing risks and benefits", Wuermeling said.
"In addition to dollars and yen, (the bank) has invested in Australian dollars since 2013 and seeks to invest in other currencies."
The move comes after the European Central Bank in June converted 500 million euros' worth of its dollar reserves into yuan.
China was Germany's top trade partner in 2016, ranking first in the European country's imports and fourth as an export destination.
The Bundesbank's currency reserves totalled some 170 billion euros ($210 billion) in November.
The yuan has gained increasing global clout in recent years and in September 2016 it joined the dollar, pound, yen and euro in the IMF's elite "special drawing rights" reserve currency basket.
It strengthened to 6.4138 against the dollar on Monday, its highest level since December 2015, according to China's Foreign Exchange Trade System, but weakened slightly to 6.4319 on Tuesday.
The unit has rallied from lows close to 7.0 against the greenback seen at the turn of the year, with the dollar also coming under pressure from most other currencies.
China's central bank only allows the tightly controlled yuan to rise or fall two percent on either side of a daily reference rate to prevent volatility but it takes into account market pressures when making its decision.
But the latest rise could lead officials to intervene, analysts say, to prevent the currency becoming too expensive.
Ding Shuang, chief economist for Greater China and North Asia at Standard Chartered Plc in Hong Kong, said: "Policy reactions may include outright interventions right before close, or a relaxation of outflow control measures to release the yuan appreciation pressure.
"The government will likely gradually expand the range each year, paving the way for a lightly managed float in two to three years."
The yuan's weakness against the dollar has been a sensitive issue with the United States, with President Donald Trump in the past hitting out at what he calls unfair trade practices by China aimed at giving their exporters an advantage over US firms.
© 2018 AFP
