|By Marketwired .||
|March 25, 2014 03:00 PM EDT||
SYDNEY, AUSTRALIA -- (Marketwired) -- 03/25/14 -- The Centre for International Finance and Regulation (CIFR) today released a comprehensive academic research report into the internationalisation of the renminbi (RMB) and its implications for global financial markets.
Authored by Dr. Kathleen Walsh and Mr. Geoff Weir, both research fellows from CIFR, and Professor Barry Eichengreen from University of California Berkeley, the 125-page report includes in-depth analysis of the Chinese financial landscape as well as interviews with more than 100 Chinese companies. It concludes that in the near-to-medium term capital controls will be largely or completely lifted; borrowing and lending rates will be market-determined; the exchange rate will be market-determined and the RMB will become a significant international reserve asset.
Key insights from the report include:
- RMB likely to become a major trade invoicing and settlement currency with implications for trade financing; FX markets and derivatives markets.
- Chinese equity market likely to become the largest in the world within a decade, with a forecast market capitalisation of around US$30 trillion or almost 25% of projected world equity market capitalisation compared to a projected US$22 trillion (18%) for the US.
- Chinese bond markets likely to become the second biggest in the world.
- Capital inflows will surge as China becomes a core component of benchmark indices, as will capital outflows as Chinese domestic portfolios diversify.
- RMB to be a significant global reserve currency, with RMB-denominated government securities likely to become the main alternative 'safe asset' to US Treasuries. This dual reserve asset future is projected to have a stabilising influence on global markets.
Geoff Weir said there would be winners and losers from the internationalisation of the renminbi:
"For example, markets that are already centres of offshore RMB expertise will experience strong growth in RMB-related financial flows and activity. On the flip side, as Chinese financial assets become major components of global equity and fixed income benchmark indices, they will do so at the expense of the assets of other countries -- in particular developed economies. Currencies and asset classes such as the Australian dollar and Australian resource stocks, which are used as 'proxy' trades to express views on China, will lose popularity."
Kathleen Walsh said that RMB trade invoicing offers many benefits for parties on both sides, but some constraints in both China and its trading partners identified in the survey they have conducted will need to be overcome.
"The costs of hedging foreign exchange risks would appear to be significantly higher in China than in many offshore financial centres, reflecting the greater liquidity and interbank connections offshore," she said. "This suggests that both parties can potentially benefit from RMB trade invoicing, but many markets have constraints that will need to be removed in order to reap the full benefits of greater RMB trade invoicing."
The report will be launched today at a Symposium in Sydney, where CIFR executives and research fellows will be joined by RMB experts from the Bank of China; the Reserve Bank of Australia; the Australian Treasury; Schrodersb; ANZ; the Australian Financial Markets Association; the Australian National University; the University of Auckland and the Chinese Academy of Social Sciences.
About the authors:
Geoff Weir began his career in The Australian Treasury and the Reserve Bank of Australia. In 1991 he moved to the financial sector, working in London and Paris as a hedge fund strategist for Bankers Trust International and later for Moore Capital. In 1996 Geoff returned to Sydney to take up a position as Head of Global Fixed Income at BT Funds Management. In 2002 he moved to JBWere (now Goldman Sachs JBWere) where he worked as strategist on a global macro hedge fund. Geoff was appointed to the position of Director, Australian Financial Centre Forum, in September 2008. He has worked as a Research Fellow at CIFR since late 2012. Geoff has a First Class Honours degree in economics from Macquarie University in Sydney and a Master of Philosophy degree from New College, Oxford.
Dr Kathleen Walsh holds a PhD in Finance from the AGSM and a First Class Honours degree in Finance from Curtin University, WA. She has held senior finance academic positions at the University of New South Wales and the University of Sydney and currently holds an appointment as an Associate Professor of Finance at the Australian National University. Dr Walsh is well published in leading domestic and international journals and has been awarded several research prizes including the E. Yetton prize for best paper in the Australian Journal of Management. Dr Walsh has also been the recipient of several research grants including a large ARC linkage grant.
Barry Eichengreen is the George C. Pardee and Helen N. Pardee Professor of Economics and Professor of Political Science at the University of California, Berkeley, where he has taught since 1987. He is a Research Associate of the National Bureau of Economic Research (Cambridge, Massachusetts) and Research Fellow of the Centre for Economic Policy Research (London, England). In 1997-98 he was Senior Policy Advisor at the International Monetary Fund. He is a fellow of the American Academy of Arts and Sciences (class of 1997). Professor Eichengreen is the convener of the Bellagio Group of academics and economic officials and chair of the Academic Advisory Committee of the Peterson Institute of International Economics. He has held Guggenheim and Fulbright Fellowships and has been a fellow of the Center for Advanced Study in the Behavioral Sciences (Palo Alto) and the Institute for Advanced Study (Berlin). He is a regular monthly columnist for Project Syndicate. His books include Labor in the Era of Globalization, co-edited with Clair Brown and Michael Reich, Emerging Giants: China and India in the World Economy, co-edited with Poonam Gupta and Ranjiv Kumar, Fostering Monetary & Financial Cooperation in East Asia, co-edited with Duck-Koo Chung, What G20 Leaders Must Do to Stabilize Our Economy and Fix the Financial System, co-edited with Richard Baldwin, (e-book 2008), Rescuing Our Jobs and Savings: What G7/8 Leaders Can Do to Solve the Global Credit Crisis, co-edited with Richard Baldwin, (e-book 2008), Globalizing Capital: A History of the International Monetary System, Second Edition (2008), The European Economy since 1945: Coordinated Capitalism and Beyond (updated paperback edition) (2008), Bond Markets in Latin America: On the Verge of a Big Bang?, co-edited with Eduardo Borensztein, Kevin Cowan, and Ugo Panizza (2008), and China, Asia, and the New World Economy, co-edited with Charles Wyplosz and Yung Chul Park (2008).He was awarded the Economic History Association's Jonathan R.T. Hughes Prize for Excellence in Teaching in 2002 and the University of California at Berkeley Social Science Division's Distinguished Teaching Award in 2004. He is also the recipient of a doctor honoris causa from the American University in Paris.
The Centre for International Finance and Regulation (CIFR) brings together leading Australian universities, research centres and financial organisations to assist the financial sector, government and regulators to meet emerging challenges and opportunities locally, regionally and internationally.
Supported by a consortium, including the Commonwealth and NSW Governments, CIFR provides a strategic link between academia, financial regulators, policy makers and industry. The Centre pursues a substantial agenda across three domains: world class research, policy input and engagement with industry.
The Continuum Partner
Email: Email Contact
Tel: +61 416 219 358
Cloud analytics is dramatically altering business intelligence. Some businesses will capitalize on these promising new technologies and gain key insights that’ll help them gain competitive advantage. And others won’t. Whether you’re a business leader, an IT manager, or an analyst, we want to help you and the people you need to influence with a free copy of “Cloud Analytics for Dummies,” the essential guide to this explosive new space for business intelligence.
Jul. 25, 2016 09:45 AM EDT Reads: 667
SYS-CON Events announced today that LeaseWeb USA, a cloud Infrastructure-as-a-Service (IaaS) provider, will exhibit at the 19th International Cloud Expo, which will take place on November 1–3, 2016, at the Santa Clara Convention Center in Santa Clara, CA. LeaseWeb is one of the world's largest hosting brands. The company helps customers define, develop and deploy IT infrastructure tailored to their exact business needs, by combining various kinds cloud solutions.
Jul. 25, 2016 09:45 AM EDT Reads: 1,110
"We're bringing out a new application monitoring system to the DevOps space. It manages large enterprise applications that are distributed throughout a node in many enterprises and we manage them as one collective," explained Kevin Barnes, President of eCube Systems, in this SYS-CON.tv interview at DevOps at 18th Cloud Expo, held June 7-9, 2016, at the Javits Center in New York City, NY.
Jul. 25, 2016 09:45 AM EDT Reads: 1,632
Aspose.Total for .NET is the most complete package of all file format APIs for .NET as offered by Aspose. It empowers developers to create, edit, render, print and convert between a wide range of popular document formats within any .NET, C#, ASP.NET and VB.NET applications. Aspose compiles all .NET APIs on a daily basis to ensure that it contains the most up to date versions of each of Aspose .NET APIs. If a new .NET API or a new version of existing APIs is released during the subscription peri...
Jul. 25, 2016 09:30 AM EDT Reads: 648
Whether your IoT service is connecting cars, homes, appliances, wearable, cameras or other devices, one question hangs in the balance – how do you actually make money from this service? The ability to turn your IoT service into profit requires the ability to create a monetization strategy that is flexible, scalable and working for you in real-time. It must be a transparent, smoothly implemented strategy that all stakeholders – from customers to the board – will be able to understand and comprehe...
Jul. 25, 2016 09:30 AM EDT Reads: 2,090
Adding public cloud resources to an existing application can be a daunting process. The tools that you currently use to manage the software and hardware outside the cloud aren’t always the best tools to efficiently grow into the cloud. All of the major configuration management tools have cloud orchestration plugins that can be leveraged, but there are also cloud-native tools that can dramatically improve the efficiency of managing your application lifecycle. In his session at 18th Cloud Expo, ...
Jul. 25, 2016 09:30 AM EDT Reads: 891
The cloud market growth today is largely in public clouds. While there is a lot of spend in IT departments in virtualization, these aren’t yet translating into a true “cloud” experience within the enterprise. What is stopping the growth of the “private cloud” market? In his general session at 18th Cloud Expo, Nara Rajagopalan, CEO of Accelerite, explored the challenges in deploying, managing, and getting adoption for a private cloud within an enterprise. What are the key differences between wh...
Jul. 25, 2016 09:15 AM EDT Reads: 1,979
Ixia (Nasdaq: XXIA) has announced that NoviFlow Inc.has deployed IxNetwork® to validate the company’s designs and accelerate the delivery of its proven, reliable products. Based in Montréal, NoviFlow Inc. supports network carriers, hyperscale data center operators, and enterprises seeking greater network control and flexibility, network scalability, and the capacity to handle extremely large numbers of flows, while maintaining maximum network performance. To meet these requirements, NoviFlow in...
Jul. 25, 2016 09:12 AM EDT Reads: 176
SaaS companies can greatly expand revenue potential by pushing beyond their own borders. The challenge is how to do this without degrading service quality. In his session at 18th Cloud Expo, Adam Rogers, Managing Director at Anexia, discussed how IaaS providers with a global presence and both virtual and dedicated infrastructure can help companies expand their service footprint with low “go-to-market” costs.
Jul. 25, 2016 09:00 AM EDT Reads: 2,323
SYS-CON Events announced today that 910Telecom will exhibit at the 19th International Cloud Expo, which will take place on November 1–3, 2016, at the Santa Clara Convention Center in Santa Clara, CA. Housed in the classic Denver Gas & Electric Building, 910 15th St., 910Telecom is a carrier-neutral telecom hotel located in the heart of Denver. Adjacent to CenturyLink, AT&T, and Denver Main, 910Telecom offers connectivity to all major carriers, Internet service providers, Internet backbones and ...
Jul. 25, 2016 08:50 AM EDT Reads: 213
Enterprise networks are complex. Moreover, they were designed and deployed to meet a specific set of business requirements at a specific point in time. But, the adoption of cloud services, new business applications and intensifying security policies, among other factors, require IT organizations to continuously deploy configuration changes. Therefore, enterprises are looking for better ways to automate the management of their networks while still leveraging existing capabilities, optimizing perf...
Jul. 25, 2016 08:30 AM EDT Reads: 1,044
SYS-CON Events announced today that Venafi, the Immune System for the Internet™ and the leading provider of Next Generation Trust Protection, will exhibit at @DevOpsSummit at 19th International Cloud Expo, which will take place on November 1–3, 2016, at the Santa Clara Convention Center in Santa Clara, CA. Venafi is the Immune System for the Internet™ that protects the foundation of all cybersecurity – cryptographic keys and digital certificates – so they can’t be misused by bad guys in attacks...
Jul. 25, 2016 08:30 AM EDT Reads: 1,265
Redis is not only the fastest database, but it is the most popular among the new wave of databases running in containers. Redis speeds up just about every data interaction between your users or operational systems. In his session at 19th Cloud Expo, Dave Nielsen, Developer Advocate, Redis Labs, will share the functions and data structures used to solve everyday use cases that are driving Redis' popularity.
Jul. 25, 2016 08:30 AM EDT Reads: 1,556
SYS-CON Events announced today the Kubernetes and Google Container Engine Workshop, being held November 3, 2016, in conjunction with @DevOpsSummit at 19th Cloud Expo at the Santa Clara Convention Center in Santa Clara, CA. This workshop led by Sebastian Scheele introduces participants to Kubernetes and Google Container Engine (GKE). Through a combination of instructor-led presentations, demonstrations, and hands-on labs, students learn the key concepts and practices for deploying and maintainin...
Jul. 25, 2016 08:00 AM EDT Reads: 693
Ovum, a leading technology analyst firm, has published an in-depth report, Ovum Decision Matrix: Selecting a DevOps Release Management Solution, 2016–17. The report focuses on the automation aspects of DevOps, Release Management and compares solutions from the leading vendors.
Jul. 25, 2016 08:00 AM EDT Reads: 1,644