OMFIF’s most read 2020: China seeks second wind for renminbi, Ways and Means is not monetary financing… yet
Wednesday 30 December 2020 – Vol.11 Ed.53.2
The year’s top stories: China seeks second wind
By Geoffrey Yu in London
Yi Gang, governor of the People’s Bank of China, has called for a new general issue of the International Monetary Fund’s special drawing right to mitigate the impact of the Covid-19 crisis. The sdr is a reserve asset which can be redeemed at any central bank for hard currency. Beijing sees a potential second wind for renminbi internationalisation, highly contingent on China helping finance the recovery in places willing to accept. The IMF offers routes for an accounting-driven reserve boost for the renminbi.
(First publihsed: 30/07/2020)
Read the full commentary on the website.
The year’s top stories: Ways and Means is not monetary financing… yet
By Chris Papadopoullos in London
The Bank and the Treasury have announced an extension to the Ways and Means facility. When the government draws money from this account, it is equivalent to issuing a short-term bond to the central bank. It could be seen as monetary financing, but the Treasury has played this down and stressed it is a temporary measure. Temporary measures, however, have a way of becoming permanent.
(First published: 09/04/2020)
|Read the full commentary on the website.|