If this is your first visit, be sure to
check out the FAQ by clicking the
link above. You may have to register
before you can post: click the register link above to proceed. To start viewing messages,
select the forum that you want to visit from the selection below.
SYDNEY - They may be telling a different story to money markets, but Asian central banks have been quietly switching their dollar holdings to regional currencies for at least three years, confirm global banking data. In a further, and so far the biggest, setback for the greenback's status as the undisputed reserve currency, Japan on Thursday said it might diversify its holdings, though monetary chiefs later sought to play down the prospect.
South Korea rattled currency traders with a similar announcement late last month, followed by a similar backtrack.
China, India, Thailand, Indonesia, Taiwan, the Philippines and Hong Kong have already started a sell-off, despite a diplomatic show of solidarity for the greenback that is prudently designed to prevent a crisis of confidence in exchange systems. The likelihood is that much of this outflow will never return to US dollars as economic interdependence within East Asia and the widening shadow cast by China's trading conglomerates are slowly transforming the traditional market structure.
CHINA: The markets are recovering their poise, settling down after
reports of an iminent Chinese yuan revaluation. Media reports suggested
that the yuan would be revaled as early as next week, citing a story on
an English language Chinese news site. However, reports from sources in
the Far East suggest there may have been a translation problem between
Chinese language site and English language site. The Chinese site
alledgedly talks of "market expectations of a yuan reval..."
Additionally, wires have reported a China central bank spokesman saying
he has heard nothing of yuan policy change. Japan FinMin Tanigaki is
also quoted on the wires saying he knows nothing about a yuan
revaluation.
Коментар