Yuan Advance Seen Along With Bonds After IMF Entry a Done Deal
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Inclusion will push China to open capital account, says ANZ
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Chinese bonds offer new market in time of shortage: Invesco
The yuan’s likely ascent to the IMF’s Special Drawing Rights will stave off depreciation concerns in the short-term, boost the bond market and oblige President Xi Jinping to push ahead with efforts to loosen capital controls.
So say economists digesting International Monetary Fund Managing Director Christine Lagarde’s announcement late Friday that her staff have recommended the Chinese currency be added to the SDR, a move Standard Chartered Plc estimates will lure more than $1 trillion to Chinese assets in the next five years. The IMF executive board, scheduled to meet on Nov. 30, must approve any changes to the basket, a requirement that adds a political layer to the decision. The U.S. has 17 percent of the votes on the IMF board…
Yuan Advance Seen Along With Bonds After IMF Entry a Done Deal
