The RMB exchange rate is caught between two powerful forces: the surging Dollar and China’s rising power.
As the global economy looks to emerging markets for growth, investors rush in for the high yields of emerging market bonds. But what about the risks?
The Chinese renminbi reached new highs against the dollar several times in December and is projected to appreciate further in 2014. The worry is that foreign exchange arbitrage is driving up demand for the Chinese currency and this may cause large capital outflows in future. In August 2010, a rusting coin was unearthed in Mambrui, a […]
For the past half-century, the dollar’s status as the de facto unit of international currency has, despite periodic protests from major countries, continued unabated. However, the combination of America’s relative economic decline and the recent political impasse in Washington has pushed China, America’s largest foreign debt holder, to challenge the dollar’s privileged status in world […]