Going Abroad With The Yuan
The internationalization of China’s currency is underway, albeit with some important hurdles still to clear. Read Here – The Diplomat
Tag: foreign exchange
Sending Money Home
In Asia’s developing countries, the power and potential of remittances – the money that migrant workers send home to their families (many of whom live in poor and remote areas) – is immense. Currently, over 60 million migrant workers from the Asia/Pacific region account for more than half of all remittance flows to developing countries, […]
For Retailers, Getting Out of Bangladesh Isn’t So Easy
When it comes to labor rights and working conditions, Bangladesh is the new China. And not in a good way. The South Asian nation has been the scene of two major industrial disasters in the past six months. In November, a fire in a factory left 112 garment workers dead; in April, a factory collapsed, […]
China’s Offshore Currency Enjoys A Promising End To A Difficult Year
ON FEBRUARY 6th, a few days before the Chinese new year, banks in Taiwan offered something new to their customers: deposit accounts in China’s currency, the yuan. The banks were full of seasonal generosity, offering much better terms than depositors normally enjoy. At Bank SinoPac, customers without two yuan to rub together can open an […]
India Joins Indonesia Facing Heightened Policy Dilemma
Central banks in Indonesia and India, with the worst-performing currencies among Asian emerging markets this year, will face more challenges in 2013 as they balance inflation risks with the need to boost growth. The Reserve Bank of India must deal with “conflicting cues” from elevated prices and an economic slowdown, complicating policy decisions even after […]
New IMF Thinking on Capital Controls Is a Good Start
The International Monetary Fund has rethought its doctrine on capital controls. The IMF, which previously favored unfettered flows of money across borders, now accepts that controls are sometimes necessary. This is a real improvement, yet it’s incomplete because it lacks a mechanism for supervision and enforcement. The fund can’t rectify that omission by itself. Member governments can and should. […]
Turning from Green to Red
IN TOKYO last week the bigwigs of international finance paid close attention to a speech by Ben Bernanke, chairman of America’s Federal Reserve. His speech urged them, in effect, to pay less attention. Many policymakers in emerging markets complain that Fed easing destabilises their economies, contributing to higher inflation and asset prices. Mr Bernanke pointed […]
How to Negotiate Peace With Honor in Global Currency Wars
Brazil’s president, Dilma Rousseff, and her finance minister, Guido Mantega, are attacking the U.S. Federal Reserve for embarking on a third round of quantitative easing. By aggressively buying bonds, the Fed aims to push interest rates lower, and that will nudge the dollar down as well. This will hurt Brazil and other developing-country exporters, Mantega says, and […]
looking beyond borders 