Will the yuan make it to the IMF basket?
Perceptions and trust are perhaps the true designators of a reserve currency, not macroeconomic fundamentals or economic idealism.
Jakarta
WITH the US Federal Reserve poised to hike interest rates soon amid a sea of devaluing currencies and quantitiative easing, the US dollar has became the defacto currency of choice among nations. The dollar accounts for nearly 90 per cent of all foreign-exchange transactions.
The International Monetary Fund has designated four currencies as reserve currencies available for stabilising monetary markets: the US dollar, the Japanese yen, the euro and the British pound. The IMF reviews the basket's composition every five years, and the next review is scheduled for November.
KEYWORDS IN THIS ARTICLE
BT is now on Telegram!
For daily updates on weekdays and specially selected content for the weekend. Subscribe to t.me/BizTimes
Columns
‘Competition for talent’ a poor excuse to keep key executives’ pay under wraps
OCBC should put its properties into a Reit and distribute the trust’s units to shareholders
Why a stronger US dollar is dangerous
An overstimulated US economy is asking for trouble
Too many property agents? Cap commissions on home sales
Time to study broadening of private market access