Renminbi’s rise, 50 years after the dollar-gold shock, IMF shifts approach to low income countries and special drawing rights, and more
THE WEEKEND REVIEW – OMFIF
Latest opinion and analysis from OMFIF around the world
9-13 August 2021, Vol.12 Ed.32
Renminbi’s rise, 50 years after the dollar-gold shock: President Richard Nixon, in his TV address on 15 August 1971, announced unilaterally that America was reneging on the gold-dollar link. The consequences remain with us today. Nixon gave countries their monetary sovereignty. It was up to them how to use it – with strikingly different results over the past half century. China is today following a broad path Nixon set 50 years ago, write Meghnad Desai and David Marsh.
IMF shifts approach to low income countries and special drawing rights: Before its summer recess, the IMF board tackled two key operational issues – future concessional support for low income countries and ‘channelling’ special drawing rights. By initial appearances, the Fund is moving boldly forward, but the fanfare exceeds reality, writes Mark Sobel.
Sovereign debt sustainability after Covid-19: Ludger Schuknecht, vice-president and corporate secretary of the Asian Infrastructure Investment Bank, and Dennis Shen, director of sovereign ratings at Scope Ratings, join John Orchard, chief executive officer of OMFIF, to discuss sovereign debt sustainability in both developed and developing economies.
In focus: SPI symposium: OMFIF’s Emma McGarthy and Natalia Ospina discuss the forthcoming Sustainable Policy Institute symposium, taking place on 29-30 September. It will bring together key policy-makers, regulators, investors and ESG experts to extend the discussion on the role of monetary policy, regulation and disclosure in achieving net zero.
Are we nearing another monetary reset?: Are we are nearing another monetary reset to match President Richard Nixon’s closure of the gold window? By fiat, Nixon dismembered the post-war monetary and financial order set up at Bretton Woods in 1944 with the dollar as its pivot. Half a century later, we are at another turning point, writes Willem Middelkoop.