IMF adds CNY into SDR basket; ECB mulls more easing



1 грудня 2015 года
ICU

Yesterday, the IMF formally upgraded the status of the Chinese currency by adding it into the SDR basket. Chinese authorities had been aggressive lobbying for this over the past several years since their efforts were last rejected in 2010. Yesterday, however, they succeeded as the IMF granted the CNY a 10.92% share, the third largest share after the US dollar and the euro. Chinese authorities are now expected to become more flexible of its FX rate, which is imminent considering the currency's current situation. More economists over the past year have deemed the CNY to be overpriced and further weakness is expected. As the ECB is expected to provide additional monetary stimulus to the eurozone economy, currently experiencing a near zero consumer inflation rate, and as the US dollar index pierced the psychologically important 100-point threshold, the environment is negative for EM currencies, particularly the hryvnia. Moreover, the US Fed's rate-setting meeting later this month is expected to have the anticipated rate hike as well.

Источник: ICU

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