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Why MNI
MNI is the leading provider
of intelligence and analysis on the Global Fixed Income, Foreign Exchange and Energy markets. We use an innovative combination of real-time analysis, deep fundamental research and journalism to provide unique and actionable insights for traders and investors. Our "All signal, no noise" approach drives an intelligence service that is succinct and timely, which is highly regarded by our time constrained client base.Our Head Office is in London with offices in Chicago, Washington and Beijing, as well as an on the ground presence in other major financial centres across the world.
EXECUTIVE SUMMARY
- Recent months have seen China make a number of announcements as the country looks to renew efforts surrounding CNY internationalization and increasing offshore participation in local asset markets.
- The CNY has certainly increased its share of international FX reserves, but it is still low in absolute terms, see the chart below.
- The China authorities may also be looking to make headway against a backdrop of improved appetite for the yuan amongst global FX reserve managers. The geopolitical landscape is more competitive compared to 5-10 years ago though. On this basis China could face greater competition from the US as it tries to internationalize the RMB.
- Link to full publication: CNY Int'l Ramps Up Again (July 8 2022).pdf
Fig 1: Share Of Allocated FX Reserves To CNY - Rising But From A Very Low Base
Source: IMF/MNI - Market News/Bloomberg
Why MNI
MNI is the leading provider
of intelligence and analysis on the Global Fixed Income, Foreign Exchange and Energy markets. We use an innovative combination of real-time analysis, deep fundamental research and journalism to provide unique and actionable insights for traders and investors. Our "All signal, no noise" approach drives an intelligence service that is succinct and timely, which is highly regarded by our time constrained client base.Our Head Office is in London with offices in Chicago, Washington and Beijing, as well as an on the ground presence in other major financial centres across the world.
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