Currencies: Yuan Wrong to Rule Them All
1Quoted in Bill Conerly, “Future of the Dollar as World Reserve Currency,” Forbes, October 25, 2013.
2Quoted in “China, U.S. Argue Economic Reform at G20 Meeting,” People’s Daily (online), February 26, 2014.
3Figure quoted in “Shift from U.S. Dollar as World Currency Underway,” Munkee.com, September 22, 2013.
5“China’s Yuan Global Ambition Faces Payments Hurdle,” Reuters, July 8, 2014.
6Figures drawn from statistics on the Bank for International Settlements website, www.bis.org/statistics.
7Figures quoted in James Kynge, “Renminbi Use Surges in Home of U.S. Dollar,” Financial Times, June 4, 2014.
8Comparison from data drawn from statistics on the Bank of International Settlements website, www.bis.org/statistics
10Drawn from statistics and commentary on the Bank for International Settlements website, www.bis.org
11Data from the Bank of International Settlements website, www.bis.org/statistics.
12Data drawn from the International Monetary Fund (IMF) website, www.imf.org/external/data/htm
13Comparison drawn from data on the IMF website, op. cit.
14See, for example, James Lamont and Amy Kazmin, “Fear of Influence,” Financial Times, July 13, 2009, and Joshua Kurlantzick, “Avoiding a Tempest on the South China Sea,” Council of Foreign Relations website, www.cfr.org September 2, 2010.
15Author’s note: In my search of an article on Europe’s financial/fiscal crisis, I could turn up no mention of any consultation with China.
16For a quick review of these conditions, see, “China’s Financial Markets Reaffirmed,” The New York Times, March 23, 2014, and Simon Ravinovitch, “Blueprint for China to Open Up Markets,” The Financial Times, February 23, 2012.
17Figures quoted in: “Why the Yuan Isn’t Really Going to Challenge the Dollar Any Time Soon,” The Wall Street Journal, April 9, 2014.
18“Market Exchange Rates in China,” ShanghaiDaily.com, August 26, 2014.
19Benjamin J. Cohn, “The Yuan Tomorrow? Evaluating China’s Currency Internationalization Strategy,” www.polsci.ucsb.edu/faculty/cohn/recent.
20Robert C. Feerstra and Chang Hong, “China’s Exports and Employment,” workpaper 63552, National Bureau of Economic Research, October 2007.
21Commerce Department National Income and Product Accounts, www.bea.gov.
22Feerstra and Hong, op. cit.
The opinions in the preceding economic commentary are as of the date of publication, are subject to change based on subsequent developments, and may not reflect the views of the firm as a whole. This material is not intended to be relied upon as a forecast, research, or investment advice regarding a particular investment or the markets in general. Nor is it intended to predict or depict performance of any investment. This document is prepared based on information Lord Abbett deems reliable; however, Lord Abbett does not warrant the accuracy and completeness of the information. Consult a financial advisor on the strategy best for you.