Rising open interest in CNH and INR futures an indication of China, India strength

THE International Monetary Fund (IMF) has indicated that the global economy is poised to slow this year, but it is not all doom and gloom as global conditions have improved and signs are that we are on the road to recovery.

One silver lining is the impact of China’s reopening of its borders on global growth. China, the world’s second-largest economy, is a major contributor to global growth, accounting for approximately 30 per cent of the world’s economic expansion, despite the three years of Covid-19 curbs that have slowed its economy. The Chinese yuan has also become the fifth most traded currency in terms of global foreign exchange turnover, according to the Bank of International Settlements (BIS), underscoring the growth of the economy.

India, the fastest-growing economy in Asia, is another bright spot. The IMF estimates that China and India will account for half of global growth this year, versus a tenth for the United States and euro area combined.