Home Today's Paper Most Popular Video Gallery Photo Gallery
Subscription Blog Signin Register
Logo
Monday, February 18, 2019 11:17:47 AM
Follow Us On: Facebook Twitter Twitter Twitter Twitter

Investment in renminbi part of long-term strategy: German central bank

By
13th-Feb-2018       
Comments
Share your thought
Post a comment »
Read all () »

Xinhua, Frankfurt :
The Bundesbank's decision to hold some currency reserves in Chinese yuan is part of a long-term strategy, and the investment will be effected as long as the preparations have been completed, the German central bank told Xinhua in a recent interview.
"The Executive Board's decision to invest in Chinese renminbi going forward was taken in the summer of 2017," the Bundesbank said in an email to Xinhua.
"Once the requisite organisational and technical preparations have been completed, the investment in renminbi will be effected," it added.
The central bank also stated that the decision to include the yuan is part of a long-term strategy and reflects the increased importance of the Chinese currency in the global financial system.
As of January 2018, the Bundesbank's foreign exchange reserves were about 31.2 billion euros, of which nearly 80 percent were securities assets, and at the moment the reserves are invested not only in U.S. dollar and yen, but also in Australian dollar since 2012, according to the German central bank.
As most central banks' reserves are held in dollars, any shift into other currencies, such as the yuan, will come at the expense of the greenback.
"The reason to use dollar reserves to invest in yuan was mainly motivated by the fact the CNY is primarily quoted against the U.S. dollar, which simplifies the process of convertibility and minimizes the transaction costs to build the small CNY portfolio," the European Central Bank told Xinhua.
Last June, the ECB announced that it had exchanged 500 million euros worth of U.S. dollar reserves into yuan securities.
The HSH Nordbank AG analyst Marius Schad believed that the IMF's decision to include the Yuan within its basket of reserve currencies in 2015 triggered this reshuffling of forex reserves.
 The world's central banks seriously take the IMF basket into account when allocating their reserves. Major shifts by the IMF will be accompanied by portfolio changes in time.
"Unsurprisingly, both the ECB's and Bundesbank's decision have been primarily affected by the IMF recognition," Marius told Xinhua, "But this is not the whole story. The inclusion of the Yuan by major central banks reflects both China's leading role within the world economy and the Yuan's rising role within the world's currency system."
However,he said that the shift towards yuan assets has to be seen as more symbolic than an economic necessity. Presently, only about 1 percent of the ECB's forex reserves are held in yuan, according the data from the ECB.
Many experts believe that the Belt and Road Initiative will boost a more widespread use of the yuan in the countries which China invested in and traded with.
The role of a reserve currency is significant with respect to funding, financing and investing, said the analyst.
He also suggested more supportive policies including equity market linkages such as the Shanghai Hong Kong Stock Connect to further encourage yuan's internationalization.
He concluded that the more the yuan would be used in international finance and trade, the more likely it would become a reserve currency.

Tariff
Add Rate

News Archive

Inside The New Nation

Editorial »

Take hard-line against tax eviction by working foreigners


THE international organisations and development partners working in Bangladesh did not surrender or renew the Customs Passbooks of their 395 non-Bangladeshi staff till the date. The National Board of Revenue had directed them to complete the task within the January 31 deadline, newspapers reported. According to NBR, employees of 21 ...

City »

40 DU students get Sumitomo Corporation Scholarship


City Desk  :A total of 40 under-graduate students from different academic years of Dhaka University (DU) have been awarded Sumitomo Corporation Scholarship of Japan today February 17, 2019 at Nabab Nawab Ali Chowdhury Senate Bhaban of the university.Dhaka University Vice-Chancellor Prof. Dr. Md. Akhtaruzzaman presided over the function while Treasurer ...

Cricket »

Sri Lanka sensation Perera hailed for Test-winning heroics


AFP, Colombo :Kusal Perera became a national hero in Sri Lanka on Sunday after scoring an unbeaten 153 to guide his country to a sensational first Test victory in South Africa.The country's cricket legends and politicians lauded Perera, who has become a linchpin for the ailing national side since fighting ...

International »

Japan PM nominated Trump for Nobel after US request


AFP, Tokyo :Japan's Prime Minister Shinzo Abe nominated US President Donald Trump for the Nobel Peace Prize last autumn after being requested to do so by Washington, a Japanese newspaper reported Sunday.Washington sounded out Tokyo over the possibility of nominating Trump for the prize after his landmark summit with North ...

Entertainment »

Shraddha Kapoor obliges fans amidst a busy schedule


Actress Shraddha Kapoor obliges for some selfies with her fans amidst a busy schedule. The actress was pictured today in London where she is working on her upcoming project Street Dancer 3D. The official Instagram handle of Manav Manglani had recently posted pictures of her taking selfies for her fans ...

Editorial »

Ensure safety for patients in the hospitals by any means


CITY'S Shaheed Suhrawardy Medical College Hospital has started operations after a messy situation caused by fire on Thursday evening. Director of the SSMCH said a total of 1,174 patients, including 72 children, were shifted to other government hospitals after the fire originated at the children's ward on the second floor ...

Sports »

Stunned Japan swimmers back stricken Olympic pin-up Ikee


AFP, Tokyo :Japanese swimmers have vowed to step up their efforts in support of Rikako Ikee, the poster girl for the 2020 Tokyo Olympics who has announced she is suffering from leukaemia.Earlier this week, the 18-year-old swim queen tweeted that she had cut short a training camp in Australia after ...

Football »

Capoue sends Watford into FA Cup quarter-finals at QPR's expense


Etienne Capoue's goal in first-half stoppage time was enough to give Watford a 1-0 win away to Queens Park Rangers (QPR) on Friday that saw the Hornets into the quarter-finals of the FA Cup.Both sides had opportunities in an even opening period that belied the fact that Watford are eighth ...

International »

Turkey has not revealed all about Khashoggi killing : Erdogan


AFP, Ankara :Turkey has not yet revealed all the information it has discovered about the killing of journalist Jamal Khashoggi in the Saudi consulate in Istanbul, President Recep Tayyip Erdogan said Friday."We haven't given all the elements we have at our disposal," the Turkish head of state said during an ...

Entertainment »

Fagun Haway' draws huge acclamation


Entertainment Desk :The premier show of 'Fagun Haway', a movie based on the 1952 Language Movement, draw a large number of film loving people at cinema halls.Actor turned director Tauquir Ahmed directed the movie which was released simultaneously at 52 cinema halls across the country.The story of the movie was ...

City »

The Namaz-e-Janaza of Poet Al Mahmud was held at the Jatiya Press Club on Saturday.


Editorial »

Save the Sunderbans to save the Royal Bengal Tigers


FOR the constant rise in sea levels and rapid climate change, the famous Royal Bengal Tigers of the Sunderbans could be disappeared within 50 years, especially from the Bangladesh part, according to a new study published recently in the journal Science of The Total Environment. A team of Bangladeshi and ...

City »

Members of RAB-2 nabbed one on Friday from Narayanganj for taking money from government officials from different areas in the country impersonating Anti-Corruption Commission official.


.

Cricket »

Feels like it`s a blessing to just be playing again: Steyn


Agency :Dale Steyn, the South African mainstay, continued to impress on his comeback trail, as he bowled at high pace and picked up four wickets over a long spell on Day 2 of the first Test of the two-match series versus Sri Lanka in Durban.The veteran fast bowler bowled at ...

Entertainment »

Shanta Jahan feels comfortable in hosting


Sheikh Arif Bulbon :Popular host of present time Shanta Jahan has to be engaged with hosting round the year in and outside the country in different stage shows and TV programmes. Besides hosting, she has more identities. She is also a model and TV actress. But she always feels comfortable ...

 
Items that you save may be read at any time on your computer, iPad, iPhone or Android devices.
 
Are you new to our website? Do you have already an account at our website?
Create An Account Log in here
Email this news to a friend or like someone
Email:
Write a comment to this news