Yuan after the Chinese economy growing significantly increases its importance in the world.Let's see what factors determine the prospects for global currency of China.
correct name of the currency
Yuan - the so-called Chinese money in the world.The name, however, does not exactly match the sound of the national currency of the PRC.At home, the Chinese bank notes are called not only as "RMB" (translation - "the money of the people").But the yuan - is a noun, meaning the funds in principle.But brevity and euphony of the Chinese word proved to taste the rest, primarily Western world.
in ISO official designation of currency - CNY.One Yuan ("RMB") is equal to one hundred fenyam (their name in China and in the rest of the world is the same).In turn, the "penny" can be combined into jiao - ten times more than the equivalent (such as "daimyo" in the US).So, the money of China are classified as follows: 1 yuan equals 10 jiao, which is identical to 10 fenyam.However, in practice, "penny" in Chinese shops hard to find, since they removed from circulation.The most common monetary coins in one or five jiao.Also in the "metal" is a single yuan.
History yuan
Monetary history in China dates back several thousand years.Character for the word "product", "purchase" for sale "," exchange "and associated in meaning, are sources that reflect the time of antiquity.The first money in the usual sense emerged in the country in the 5th century BC.e.First, in the form of bronze ingots (or in the form of simple household items - a shovel, knife), then there were Chinese coins.
Money in the period corresponding to the European Middle Ages, along with copper samples were supplemented by iron and lead format, as well as entered into circulation paper money.Over time, Chinese money has undergone "silver" standardization, and at the beginning of the twentieth century - the "golden".When the communists came to power, it was created by the People's Bank of China.All the money that the population were in circulation, subject to withdrawal and exchange in the renminbi - China's new money, those same "people's bills."Issue a new currency was strictly controlled by the state.
exchange rate policy
Until 1974, RMB exchange rate trading, usually with a reference to the pound, but then quotes have been used in relation to the US dollar.In 1994, the government initiated a frost of the renminbi to the US banknotes in a ratio of 8.27 to 1 RMB "buck", which lasted 11 years.This caused discontent among some of China's trading partners, including the United States.The Chinese authorities have come under pressure for liberalization of the monetary policy, since, according to representatives of other countries, because of the low rate of the yuan, China gains an advantage by purchasing power.This situation is partly confirmed by the figures: the trade deficit with China in 2004 exceeded 160 billion dollars, and in 2005 it continued to increase.But in the same year, the Chinese government abolished the "freezing" of the course.However, as noted by some experts, since the yuan is still not been released to float freely, and his course could artificially low.
Yuan and Ruble
close economic cooperation between Russia and China every year impresses more and more.Chinese money, their name and the pronunciation - not new to the Russian Federation.Moscow and Beijing are working together to organize a variety of global destinations, so cooperation in the field of currency regulation plays an important role in the trade cooperation between the two countries.Now the ruble and the Chinese money claim to the hypothetical inclusion in the list of reserve currencies, but so far it does not happen in practice.
In recent years, there has been a trend - mutual settlement not in dollars or pounds, and the national bank notes.In 2010, the ruble began to be traded on the Shanghai Stock Exchange, and the yuan, in turn - on the MICEX and RTS.National regulators have different effects on the principles of trading.Central Bank of China has a hard limit on fluctuations in the exchange rate of the yuan within 0.5%.The Bank of Russia, as a rule, affects the trades with foreign exchange intervention.Among traders yuan is of growing interest, there are thematic portals where you can quickly translate Chinese Russian money at the current rate.
promising investment in yuan
Many experts believe that the rate of the RMB against the major currencies undervalued, so it makes sense to invest in a Chinese bank note with the expectation that it will rise in the foreseeable future.Practice shows that currency trading, the yuan if it is growing, not as fast as we would like investors.For example, in relation to the ruble, experts said, the RMB appreciation in recent years has shown an average annual growth of around 8%.
about the same benefit can bring an ordinary bank deposit.Invest in Yuan financiers recommended only in certain cases.Firstly, it is advisable at regular trips to China.Secondly, the yuan can be considered as a "reserve" currency to a diversified portfolio of investments.Third, the RMB deposits in Russian banks on the terms may well be interested and the Chinese themselves, who come for tourism or business in Russia.
Yuan and the dollar
Relations between the yuan and the main world currency obviously depends on how things will develop in the friendship between the countries issuing the money.One of the factors - the bulk of China's financial reserves are held in dollars.Much depends on whether the Chinese will continue to keep foreign currency reserves within the existing structure, or would prefer to diversify the portfolio.Head of the Central Bank of China voiced this idea on the official level - that the reserves of the country can not consist only of US dollars.In the press any information that China plans to sell about $ 2 trillion "dollars" from the existing 3.04 trillion in favor of the transfer to other assets that are not associated with the US "green."Some experts believe that the government of the PRC is only trying to negotiate preferential terms for the Chinese yuan and turn the money into a reserve currency on a par with the dollar.
Yuan as a world currency
intentions of the Government of China to make the yuan one of the world's leading currencies, experts say, may be based on a fundamental basis.Some financial analysts expect that in the next few years, the proportion of China's foreign trade transactions with other countries in yuan could exceed 30%.The evolution of this figure is impressive: it is now close to 20%, while four years ago was 3%.
In the first months of 2014 according to the calculations of financiers RMB took 7th place in the list of the most popular currencies in the world, ahead of, in particular, the Swiss franc.Growing investment value of the yuan as China is becoming more open to the world markets.Recently in London there was a joint project of the Bank of England and China - settlement center for the organization of the yuan.Experts expect that Chinese money exchange become prominent on the global level, but does not the fact that they will replace the dollar.
yuan outside China
Currency China begins increasingly used in trade in stocks, bonds and other financial instruments as.This area will be developed more intensively, rather than the yuan can become a convertible currency.RMB appreciation being developed in other countries, "the Chinese" Profile: Hong Kong (where the share of deposits in the currency of the PRC has reached 12%, while in 2008 - only 1%), Taiwan, Singapore.In the latter two countries have offshore centers of trade in yuan.Recently, the People's Bank of China and the Central Bank of Germany signed an agreement on settlements in the currency of the PRC.
political significance of the Chinese yuan
many experts recognized as the main engine of the global economy.China now produces, depending on the calculation bases, 10-15% of the GDP of the planet.Expansion of economic influence of China, and hence the impact on political processes, directly related to the monetary policy of the government.Financial experts believe that the prospects of this area depends on three factors.
- Firstly, internationalization is - use the currency as a means of expression and the value of settlement in international financial transactions.
- Secondly, this convertibility - the degree of restriction flows and outflows of capital.
- Third, is the use of foreign banks as a reserve currency.
from the government of China will combine priorities in these areas depend on the prospects for the yuan as a tool of political influence.
