Posts tagged 'Yuan'

Mini Mac Trumps the Big MacPosted on January 19, 2017 10:28 am by Benn Steil and Emma Smith of the Council on Foreign RelationsThe “law of one price” holds that identical goods should trade for the same price in an efficient market.  But how well does it actually hold internationally? The Economist magazine’s famous Big... read more

Have you ever wondered which currencies receive the most trading action? The data for the following chart comes from a survey done every three years by the Bank of International Settlements (BIS).Note that trading volume adds up to 200%, because each currency trade has a pairing.Chart courtesy of: DatashownThe Chinese yuan is now the 8th most... read more

China’s Bond Market Can’t Handle a Global RMBby Benn Steil and Emma SmithThe Chinese RMB’s ascension into the IMF’s SDR currency basket in October has been widely seen as an important first step on its path to becoming a global reserve currency.  But we would argue that the path is a very long one, and that even rivaling... read more

Courtesy of: The Money Project The Money Project is an ongoing collaboration between Visual Capitalist and Texas Precious Metals that seeks to use intuitive visualizations to explore the origins, nature, and use of money.With one of the world’s largest economies and a growing financial sector, China continues to rise as a global power.The country’s currency, the Chinese... read more

Could China Have a Reserves Crisis?by Benn Steil and Emma SmithLast summer, U.S. lawmakers were condemning China for pushing down its currency, arguing that it was still “terribly undervalued.” But those days may be long gone.  Chinese and foreigners alike have been stampeding out of RMB, leaving the Chinese central bank struggling to keep its value... read more