{"id":29756,"date":"2018-01-15T21:06:10","date_gmt":"2018-01-16T02:06:10","guid":{"rendered":"http:\/\/olduvai.ca\/?p=29756"},"modified":"2018-01-15T21:12:49","modified_gmt":"2018-01-16T02:12:49","slug":"as-petro-yuan-looms-bundesbank-adds-renminbi-to-currency-reserves","status":"publish","type":"post","link":"https:\/\/olduvai.ca\/?p=29756","title":{"rendered":"As Petro-Yuan Looms, Bundesbank Adds Renminbi To Currency Reserves"},"content":{"rendered":"
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As Petro-Yuan Looms, Bundesbank Adds Renminbi To Currency Reserves<\/a><\/span><\/h3>\n<\/div>\n
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Just days after China’s (denied) threat to slow\/stop buying US Treasuries<\/a>, and just days before the launch of China’s petro-yuan futures contract<\/a>, Germany’s central bank confirmed it would include China’s Renminbi in its reserves<\/strong>.<\/p>\n

The FT reports <\/a>that Andreas Dombret, a member of Deutsche Bundesbank\u2019s executive board, said at the Asian Financial Forum in Hong Kong on Monday that the central bank had \u201cdecided to include the RMB in our currency reserves\u201d.<\/p>\n

He said: \u201cThe RMB is used increasingly as part of central banks\u2019 foreign exchange reserves; for example, the European Central Bank included the RMB [as a reserve currency].<\/strong><\/em>\u201d<\/p><\/blockquote>\n

The Bundesbank\u2019s six-member board took the decision to invest in renminbi assets in mid-2017, but it was not publicly announced at the time. No investments have been made yet; preparations for purchases are still ongoing<\/strong>.<\/p>\n

The inclusion in the German central bank\u2019s reserves basket underscored China\u2019s increasing prominence in the global financial landscape<\/strong>, and reflected policies aimed at making the currency more freely tradable internationally.<\/p>\n

Mr Dombret said:<\/p>\n

\u201cThe notable development from the European point of view over the past few years has been the growing international role of the RMB in global financial markets.<\/strong>\u201d<\/p><\/blockquote>\n

The offshore Yuan strengthened on the news overnight – pushing to its strongest in over 2 years…<\/p>\n

\"https:\/\/www.zerohedge.com\/sites\/default\/files\/inline-images\/20180115_dollar1_0.png\"<\/p>\n

And as Les Echoes reports, while the Bundesbank wants to integrate the yuan into its foreign exchange reserves, the Banque de France is already using it as a currency of diversification.<\/strong><\/p>\n

The Banque de France has raised a corner of the veil on its strategy of managing foreign exchange reserves.<\/p>\n

“The foreign currency holdings remain overwhelmingly invested in US dollars, with diversification to a limited number of international currencies such as the Chinese renminbi.<\/strong>“<\/p><\/blockquote>\n

Which currency would you rather hold as a stable reserve?<\/strong><\/em><\/u><\/p>\n

\"https:\/\/www.zerohedge.com\/sites\/default\/files\/inline-images\/20180115_dollar.png\"<\/p>\n

…click on the above link to read the rest of the article…<\/p>\n<\/div>\n<\/div>\n<\/article>\n<\/div>\n","protected":false},"excerpt":{"rendered":"

As Petro-Yuan Looms, Bundesbank Adds Renminbi To Currency Reserves Just days after China’s (denied) threat to slow\/stop buying US Treasuries, and just days before the launch of China’s petro-yuan futures contract, Germany’s central bank confirmed it would include China’s Renminbi in its reserves. The FT reports that Andreas Dombret, a member of Deutsche Bundesbank\u2019s executive […]<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_monsterinsights_skip_tracking":false,"_monsterinsights_sitenote_active":false,"_monsterinsights_sitenote_note":"","_monsterinsights_sitenote_category":0,"footnotes":""},"categories":[2],"tags":[6119,130,2386,17950,17488,675,2721,1031,4318],"class_list":["post-29756","post","type-post","status-publish","format-standard","hentry","category-economics","tag-bundesbank","tag-china","tag-currency-reserves","tag-germane","tag-petro-yuan","tag-renminbi","tag-us-treasuries","tag-yuan","tag-zerohedge"],"_links":{"self":[{"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/posts\/29756","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/olduvai.ca\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=29756"}],"version-history":[{"count":1,"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/posts\/29756\/revisions"}],"predecessor-version":[{"id":29757,"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/posts\/29756\/revisions\/29757"}],"wp:attachment":[{"href":"https:\/\/olduvai.ca\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=29756"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/olduvai.ca\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=29756"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/olduvai.ca\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=29756"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}