By Gary Smith in London
Asset class diversification continues to be a key theme for central bank foreign exchange reserves managers. Despite a weaker renminbi/dollar rate this year, the Chinese currency has increased its share in global reserves, according to IMF data. The latest report shows a jump in renminbi holdings of around $50bn in the second quarter of 2018. Less than a decade after the launch of the renminbi internationalisation initiative, we estimate that more than 60 central banks have renminbi in their reserves. But allocations are still relatively small.
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Mark Sobel, OMFIF’s US chairman, is joined by Steve Hanke, professor of applied economics at Johns Hopkins University; George Hoguet, member of the research committee at the Chartered Financial Analyst Institute Research Foundation; Christopher Smart, head of macroeconomic and geopolitical research at Barings; and Marsha Vande Berg, 2016-17 Stanford University career fellow. They discuss the effects of the 2018 midterms on US economic policy, including monetary policy, fiscal policy, trade and regulation.
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