Monthly Archives: November 2015


IMF Approves Reserve-Currency Status for China’s Yuan

IMF Approves Reserve-Currency Status for China’s Yuan

Bloomberg Business  By  Andrew Mayeda
 
The IMF will add the yuan to its basket of reserve currencies, an international stamp of approval of the strides China has made integrating into a global economic system dominated for decades by the U.S., Europe and Japan.
 
The International Monetary Fund’s executive board, which represents the fund’s 188 member nations, decided the yuan meets the standard of being “freely usable” and will join the dollar, euro, pound and yen in its Special Drawing Rights basket, the organization said Monday in a statement. 
~~~
Approval was expected after IMF Managing Director Christine Lagarde announced Nov. 13 that her staff recommended inclusion, a position she supported.
 
It’s the first change in the SDR’s currency composition since 1999, when the euro replaced the deutsche mark and French franc. It’s also a milestone in a decades-long ascent toward international credibility for the yuan, which was created after World War II and for years could be used only domestically in the Communist-controlled nation. 
The IMF reviews the composition of the basket every five years and rejected the yuan during the last review, in 2010, saying it didn’t meet the necessary criteria.
 
The decision is a “recognition of the progress that the Chinese authorities have made in the past years in reforming China’s monetary and financial systems,” Lagarde said Monday.
 
“The continuation and deepening of these efforts will bring about a more robust international monetary and financial system, which in turn will support the growth and stability of China and the global economy.”

The addition will take effect Oct. 1, 2016, the IMF said. The fund said the yuan would have a 10.92 percent weighting in the basket. Weightings will be 41.73 percent for the dollar, 30.93 percent for the euro, 8.33 percent for the yen and 8.09 percent for the British pound. The dollar currently accounts for 41.9 percent of the basket, while the euro accounts for 37.4 percent, the pound 11.3 percent and the yen 9.4 percent.
Picture

In a preliminary report in July, IMF staff estimated the yuan would have a weight of about 14 percent to 16 percent. The weighting will affect the interest countries pay when they borrow from the IMF. It may also affect the scale of inflows the Chinese currency receives in the coming months.
 
Monetary System
 
The decision establishes the yuan as a fixture in the very international monetary system Chinese leaders criticized following the global financial crisis. In a landmark 2009 speech, People’s Bank of China Governor Zhou Xiaochuan argued a global system so reliant on a single currency — the U.S. dollar — was inherently prone to shocks.
 
That conviction set off a global push by China’s leaders, including now-President Xi Jinping, to have the yuan included in the SDR, which countries can use to supplement their currency reserves.
 
The IMF endorsement is a bright spot in what has been a tumultuous year for the world’s second-biggest economy, which has been buffeted by slowing growth, a tumbling stock market and a shift by authorities toward a more market-oriented exchange rate.
 
Approval is unlikely to have much impact on short-term demand for the yuan, given the SDR’s minor share of global reserves, according to economists at banks including HSBC Holdings Plc and ING Groep NV.
 
But the backing of the IMF, as well as the financial reforms required for China to secure and maintain it, could propel use of the yuan past the pound and yen over the medium term, said Viraj Patel, a currency strategist at ING Bank in London.
 
“We’re going to see sort of the emergence of a renminbi trading bloc,” mostly composed of Asian countries, Patel said in a phone interview before the decision, using the official name which means “the people’s currency” in Mandarin.
 
The decision should boost efforts by Xi to open up China’s financial markets. China implemented a series of reforms to win IMF support, such as opening its onshore bond and currency markets to foreign central banks and reporting its reserves to the IMF.  
G-20 Host
 
The question is whether China, which will host meetings of the Group of 20 economies next year, will try to leverage the IMF’s support to pursue broader changes to the global monetary system. In his 2009 speech, Zhou suggested the IMF expand the use of the SDR to tap its potential as a “super-sovereign reserve currency.”
 
The Washington-based fund created the SDR in 1969 to boost global liquidity. Under the Bretton Woods system of fixed exchange rates, countries pegged their currencies to the U.S. dollar. But for nations to increase their dollar reserves, the U.S. would have to run persistent current-account deficits, threatening the value of the greenback.
 
The SDR addressed this dilemma by serving as a supplementary reserve asset to augment countries’ gold and dollar holdings. While the SDR isn’t technically a currency, it gives IMF member countries who hold it the right to obtain any of the currencies in the basket to meet balance-of-payments needs.

http://www.bloomberg.com/news/articles/2015-11-30/imf-backs-yuan-in-reserve-currency-club-after-rejection-in-2010

STEVEI CHAT UPDATE, 30 NOV

Greetings PD followers. Here is the future path for Peoples Dinar Forums.

Over the next 72 hours you can still follow the progress. See the scope below. This will not change, do not worry.

The current and working forums is use the http format: (sorry, I created the stupid rules and not can not give full format) forums2014.peoplesdinar.com  a/k/a http://207.168.245.84(This will ask for a new

SUNNY POST FROM TNT : TONY’S CLIFF NOTES, 30 NOV

Highlights of Tony’s conference call.  Updated as the call progresses.   SUPER Short call today.

Tony:  I hope you are Super Fantastic, because I believe we have finally made it to the “Promise Land.”

Weekend:  Heard it was gone.  Should have gone.  Banks brought people in on Saturday.  Rates on the board.  Last Thursday, last Friday, even Saturday, all information said rates were pushed

Maliki’s coalition government warns of giving the disputed territory of Kurdistan

Monday 30 November 2015 | 16:06


Maliki’s coalition government warns of giving the disputed territory of Kurdistan


BAGHDAD / .. warned a coalition of state law, led by Nuri al-Maliki, on Monday, the Iraqi government to give the disputed territory of Kurdistan in exchange for participation in the liberation of the Peshmerga Nineveh operations.


The MP for the high Nassif coalition for "Eye Iraq News", that "Barzani too went further and provided the conditions for the Iraqi government in exchange for the participation of the Peshmerga in the liberation of Nineveh, including annexation of the disputed Kurdistan territory," indicating that "the Scott government to persistence Barzani gives an indication that the government will approve on the terms of Barzani and we Nhdhirha from this dangerous action."

She Nassif that "the political niceties that prompted Barzani to continue with and to demand the annexation of Iraqi territory of Kurdistan At issue is clear and explicit statement of the statement the official position of the occupation of land by the Kurds," asserting that "Barzani is a major cause in the fall of Mosul and delivered to Daash".

The President of Kurdistan, Massoud Barzani, had demanded during his visit Sinjar district west of Mosul after its liberation on 12 and 13 of this month not to raise any flag is the flag of Kurdistan, which raised the ire of the federal government where the prime minister Haider al-Abadi stressed the need to raise the Iraqi flag in Sinjar "noting that" the liberalization process of elimination in which the Peshmerga within the Iraqi security system which Sinjar freed demolished by Iraqi and must raise the Iraqi flag in it. "End quote 9



http://aynaliraqnews.com/index.php?aa=news&id22=48985

The Yuan Grows Up – A Milestone For The World Economy

CURRENCY

The Yuan Grows Up

NOV 30, 2015 9:20 AM EST   By Bloomberg Editorial Board 

At a board meeting on Monday, the International Monetary Fund is likely to announce that China’s currency, the yuan, will join the dollar, yen, euro and pound as part of the global currency basket known as the Special Drawing Right.

​Don’t dismiss this as an inconsequential technical adjustment. It’s a milestone for the world economy.
 
Beijing has been seeking the decision for a while, arguing that the yuan’s importance in world trade warrants this new status as a global reserve currency. Earlier this month the IMF staff reported that the yuan now met the criteria for inclusion in the SDR. It remains only for the board, representing the views of the U.S. and the IMF’s leading members, to sign off. They should do so.
​~~~

The point of the SDR is to assure IMF members that, if necessary, they can borrow the basket’s constituent currencies to meet balance-of-payment needs. Now that more trade is transacted in yuan than in yen, China’s currency easily passes the first test for inclusion — that it be “widely used.” 
Picture

And China has made changes (such as opening up its bond market) to satisfy the other criterion, that the currency should also be “freely usable.” 

​(On Monday, it was announced that Michael R. Bloomberg, the founder and majority owner of Bloomberg LP, will lead a finance and industry working group to establish the trading and clearing of the Chinese currency in the U.S.)

Granted, deciding what’s “freely usable” isn’t black and white — some discretion is involved, and China hasn’t fully liberalized its capital market — but refusing to include the yuan in the SDR would at this point look like a deliberate snub.

After all, the decision is not just about the technicalities of currency baskets, it’s even more about granting China standing as one of the world’s leading economies. In that regard, the change is overdue.

The People’s Currency 
 
Beijing will see the move as a recognition of its efforts to reform its economy and liberalize its financial markets. The decision will likely strengthen the hand of those who want reform to go further and faster — which would benefit China and its trading partners alike.

In the short term, the direct effects on currency markets will probably be modest, but with time use of the yuan will widen further, which is all to the good.
 
Further changes are needed to give China and other big emerging economies a greater say in the IMF and global economic governancemore broadly. 

Since 2010, the U.S. Congress has delayed moves to bring such nations’ voting strength at the fund into better alignment with their new economic weight — not because of deep convictions on the matter but out of lawmakers’ sheer inability to get anything done.
 
Such neglect is unacceptable. The shape of the world economy has changed dramatically in the past few years, and there’s more to come. The institutions that governments have created to manage global finance need to keep up.
 
(Updates third paragraph in article published Nov. 29 to reflect a new working group on the yuan.)

To contact the senior editor responsible for Bloomberg View’s editorials: David Shipley at davidshipley@bloomberg.net.

http://www.bloombergview.com/articles/2015-11-29/the-yuan-grows-up

Bits and Pieces in Dinarland Monday Afternoon

KTFA:

BACKDOC:  WITH WEDNESDAY BEGINNING THE VACATION PERIOD IN IRAQ AND A POSSIBLE REPLACEMENT FOR THE “ACTOR” ALAK, THE ACTING CBI GOVERNOR, WE ARE RIGHT ON SCHEDULE!

NO WONDER THE “ACTORS” WANT IMMUNITY FROM PARLIAMENT!

NO WAY!

SHABIBI SAYS: MAKE MY DAY AS HE BLOWS THE END OF HIS LEGISLATIVE GUN!

BAAA HAA   DOC    IMO
….

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Zerb:  From Bloomberg, Nov 30, 2015, 12:03:13 PM

China’s currency will be added to the IMF’s Special Drawing Rights Basked, according to Managing Director Christine Lagarde.

To read the entire article, go to     http://bloom.bg/1jucmho

I think that bouncing elephant that’s really help things. Lol

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Panther51:  IMO….this is huge!

http://www.cnbc.com/2015/11/30/imf-agre … asket.html

IMF agrees to include China’s RMB in benchmark SDR currency basket

The International Monetary Fund agreed Monday to add the Chinese yuan to its currency reserves basket.

The decision — which marks another step in China’s global emergence — came after the IMF evaluated China’s role as an exporter and the yuan’s role as a “freely usable” currency. IMF Managing Director Christine Lagarde noted the currency’s inclusion is a “clear representation of the reforms” taking place in China.

The addition of the yuan, or renminbi, will take effect next October.

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BACKDOC:   THE RIPPLE IN THE POND NOW BEGUN!  PRAISE GOD FROM WHOM ALL BLESSINGS FLOW!

Desire:  Please keep your arms and legs inside the car until the ride has come to a complete stop!

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Reposted From:  http://www.dinarrecaps.com/our-blog/oz-goes-global-backdoc-late-sunday-night-post-sent-to-dinar-recaps

Backdoc   HANG ON TO YOUR HATS, SEATS, AND TICKETS, FOLKS, THE SDR TRAIN IS ABOUT TO ROLL!

MY EYES WILL BE FOCUSED ON THE WEE HOURS OF THE 7TH GOING INTO THE 8TH. IF ALL GOES WELL, BY MID DECEMBER WE WILL SEE OUR DECEMBER TO REMEMBER WITH AN INTERNATIONAL LIVE RATE OF MANY CURRENCIES! 

DON’T BE IN A HURRY TO SWAP YOUR CURRENCY THEN, JUST LET THE REAL VALUE CLIMB! 

BY THE END OF THE FIRST 90 DAYS YOU WILL SEE THE INTERNATIONAL RATE REACH MATURITY TO RI STATUS.

IMO I THINK THERE WILL BE A MUCH HIGHER RV (REVALUE) RATE MONTHS LATER. TIME WILL TELL.

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TNT:

daz CANADA RATES WILL BE DIFFERENT THAN US RATES…JUST LIKE EVERY OTHER COUNTRY WILL HAVE DIFFERENT RATES..

THE EXCHANGE RATE SYSTEM IS AN “EQUALIZER” TO ADJUST FOR A SORT OF PARITY BETWEEN ECONOMIES

THERE WERE NEVER GOING TO BE 800 NUMBERS BEFORE

THERE WAS GOING TO BE NUMBERS…SO SIT DOWN AND MAKE A LITTLE PLAN LIKE IT WAS THE “OLD DAYS”     
   
800#’S ARE A RECENT EVENT.. BACK OVER THREE YEARS AGO THERE WAS NO “PLAN” FOR 800’S..WE WERE JUST DOING AN EXCHANGE TRANSACTION..

WE CONTACT OUR DEALER OR THE CURRENCY DEPARTMENT AT OUR FAV BANK AND MAKE AN APPOINTMENT TO EXCHANGE..THE “OLD DAYS” PLAN

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(Exchange Examples)

Daz:  HELLO MR. BANKER, I HAVE IRAQ DINAR, VIETNAM DONG AND ZIMBABWE CURRENCY. I WOULD LIKE TO EXCHANGE…CAN WE DISCUSS THE MOST FAVORABLE RATES AND TERMS, BOTH PUBLIC AND PRIVATE, AVAILABLE FOR EACH?

OR….

WELL MR BANKER…..I RECEIVED SOME INFORMATION IN THE PAST THAT THERE MAY BE MORE THAN ONE RATE AVAILABLE DEPENDING ON HOW WE EXECUTED THIS EXCHANGE.

IF THERE ARE OTHER OPTIONS BESIDE AN EXCHANGE AT THE INTERNATIONAL RATE, I WOULD LIKE TO EXPLORE THOSE TERMS AND REQUIREMENTS IF THEY ARE AVAILABLE TO YOU OR ANY AT THIS BANK.

TNT Cont…….:

Iko Ward :  DINAR JUST RESET ON FOREX TO 1165…THIS IS GOOD.

KittyNDog:  Can someone explain why it is good that it reset back to 1165?

MW:  Kitty… I THINK it is because they are going to reset all of the currencies for the Dec 1st date and MAYBE they are going to reset Dinar at its TRUE VALUE tonight!!!

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Shybaby:  Renminbi As The Fifth International Reserve Currency

November 30, 2015 6:56 am   

Renminbi As The Fifth International Reserve Currency by Dan Steinbock, Difference Group
If the IMF will endorse the renminbi as a new international reserve currency, the repercussions will be global and historical.

Recently, the International Monetary Fund’s staff and its chief Christine Lagarde suggested that the yuan should join the basket of international reserve currencies (the Special Drawing Rights, or SDR). The inclusion is expected to be approved at the IMF board meeting on Nov 30.

It would make the yuan the first currency of an emerging economy to be included in the basket. And it could unleash three waves of capital inflows into the Chinese currency.

http://www.valuewalk.com/2015/11/renminbi-as-the-fifth-international-reserve-currency/?ref=yfp

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GodBlessTony: Here’s a detailed look at how the SDR Basket works..China weighted at 10.92%

The IMF Confirms Yuan Inclusion In SDR Basket At 10.92% Weight, Above JPY And GBP

IMF staff earlier this month proposed that the yuan be added to the basket of currencies used to value the SDR, a reserve asset created by the institution in 1969, and today that decision is confirmed (as expected).

The IMF’s Executive Board decision today means that the yuan will be included in the SDR basket from Oct. 1, 2016, effectively anointing the yuan as a major reserve currency and represents recognition that the yuan’s status is rising along with China’s place in global finance.

 http://www.zerohedge.com/news/2015-11-30/imf-confirms-yuan-inclusion-sdr-basket-now-comes-hard-part-china

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Lux40:  It’s interesting to see how the US Dollar appears to have taken the smallest hit of all the other original SDR composite currencies, in order to accommodate the inclusion of the Yuan.

 It is also interesting how the “weighting” of the Yuan may very well change that if it goes from 10.92% to around 15% of the total.

DC alluded to this back when he was on the calls. He mentioned that the USD would take a minimal hit, and it looks like he was right on!

Thanks for posting this. Great find.

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[sunny] Announcement of the Yuan in the IMF Basket: .   http://www.marketwatch.com/

Broccolysaurus:  In case anyone would like to estimate their Capital gain tax. https://smartasset.com/investing/capital-gains-tax-calculator

TNT CC NOTES, 30 NOV

Replay 605.562.3179, PIN CODE 409029#

http://events.instantteleseminar.com/?eventid=77852595

Tony:  Good morning, TNT!  Today is Monday, November 30, 2015.  I hope you are super-fantastic – we have finally made it to the Promised Land!  [We have already had the good news that the IMF has approved the inclusion of the Chinese yuan (renminbi) in the global reserve currency basket.]  THEY

KTFA CHAT UPDATE, 30 NOV

Frank26:  It has been …… It is as we have SHARED:

Two MONDAYS ago we PROVED that #4 was given by DRS.

SHARED ….RI into RV and … DECEMBER 15th.

Then told YOU that #3 would be in the FIRST WEEK OF DECEMBER.

What will we SHARE tonight?   If it was up to me …………… Nothing.

KTFA   Frank…….. More.

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Walkingstick:   On the road to reform (4) Central bank: review and SolutionsSunday

S3A CHAT UPDATE, 30 NOV

S3A : 
EXOGEN November 29, 2015 at 12:55pmINTERNATIONAL MONETARY FUND EXPECTED TO GIVE CHINA RESERVE CURRENCY STATUS MONDAYhttp://www.abc.net.au/news/2015-11-29/imf-set-to-give-chinese-yuan-reserve-status/6984464jpv > EXOGEN  If voted not effective till sept 2016….Delay till then?EXOGEN > jpv THERE IS NO “IF VOTED”     ITS ALREADY DONE, FINISHED AND COMPLETEDALL THAT WILL TAKE PLACE NEXT IS

Pastors Ed & Kat International Prayer Call Mon. Night 7pm ET

International Prayer Call Monday Night 7pm ET

641 715 3660   406878#
641 715 3659   406878#    recorded version

Exciting times walking in the glory of Jesus Christ, Getting connected to a ministries anointing is awesome. 

Seeking Jesus daily receiving daily blessings with overflow is wild, don’t know where its coming from until he delivers and then Boom Royal favor blessings grace mercy and glory straight from the throne room. want it?

​Join us Shalom Shalom
God Bless

Pastors Ed & Kat
heavenlyhealingministries.org

Thanks Dinar Recaps for helping so much