MNI China Daily Summary: Thursday, April 22

MNI BRIEF: China To Quicken Resolving Local Debt Risks

RPT-MNI INTERVIEW: ECB's Wunsch Sees At Least Two Cuts By Dec

MNI BRIEF: Brazil CenBank Faces Greater Uncertainty - Campos

MNI: PBOC Conducts CNY2 Bln Via OMO Mon; Liquidity Unchanged

CHINA PBOC INJECTS CNY2 BILLION VIA 7-DAY REVERSE REPOS MON

EZ/UK T-Bill Calendar: 3/6-Month ATB Auction on Tuesday

EZ/UK Bond Supply Calendar: EU, FI Synds; IT, DE Auctions Tues

MNI: CANADA MAR INDUSTRIAL PRICES +0.8% MOM; EX-ENERGY +0.8%

RPT-MNI: Canada Sticks To Fiscal Anchors, Spends Chunk Of Windfall

MNI BRIEF: Poilievre Calls QE 'Scam' And Would Limit BOC Remit

MNI: Growth Drag From Net Zero Carbon Goal Can Be Offset-OECD

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Goldman Sachs: CNY Likely To Be The Third Largest Reserve Currency By 2030

CNY

Goldman Sachs note that "China's bond market liberalisation has accelerated over the last five years. With China now included in all three major global bond indices (FTSE WGBI due to start in October), we turn our attention to the potential increase in allocations to Chinese assets from global central bank reserves, which total around USD12tn currently."

  • "We project that the CNY share of global (ex-China) central bank reserves will rise to 6-7% over the next five years (from 3.4% as of Q121)."
  • "Combined with an assumption of 4-5% annual reserve growth, this equates to around USD400bn of cumulative CNY inflows over the next five years (even larger than our estimate of USD250bn passive inflows from bond index inclusion)."
  • "Based on these projections, we think CNY could represent around 5-6% of total central bank reserves (including China's own reserves) within the next eight years and we think CNY is likely to be the third largest reserve currency in the world by 2030."
MNI London Bureau | +44 0203-865-3809 | anthony.barton@marketnews.com
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