Tuesday, 1 December 2015

China's Reminibi making waves in the currency market

China's Renminbi makes the IMF basket of currencies

After months of speculation over whether the IMF will finally add the world's second largest economy's currency to its existing basket of four currencies namely the Euro, Great Britain Pound, Japanese Yen and the US Dollar, the much anticipated announcement was made that China's Renminbi will be included, signalling a major boost for Chinese officials who have been put under pressure for most of this year due to reforms it has put in place in the financial sector of it's economy.

The move is indicative of global confidence in accepting the currency which is fast becoming a dominant fixture in most central banks reserves as China percentage of total global trade goes uncontested.

I mentioned in a previous blog that the move would definitely shift sentiment and that the other currencies are expected to make way as is already evident in the 5% drop in the weightings may put euro officials on alert as the Euro loosens its grip on international finance transactions.

What it does do is place scrutiny on the way China dabbles in it's currency as it sees fit with the recent bout of intervention in August 2015 causing ructions in global markets. Officials won't be as flexible as they are now so it will be interesting to see how they respond to this hopefully in a positive way.
UK set to begin airstrikes in Syria

As if Russia conducting military action in Syria to rid it of terrorism wasn't enough and Turkey's dilemma it's been placed in with an ever increasing refugee crisis, it seems as if the UK will succeed in passing a vote that will allow its air force to join scattered operations adding even more fire power on the ground.

If the UK wanted to increase its awareness to potential terrorism threats why can it not focus on the elements that exist inside its own borders before it starts muddling in an area that has no formal alliances besides that between Assad and Putin.

One only needs to think back a little over a week ago when Turkey shot down a Russian fighter jet to understand that the proper processes hadn't been followed and the necessary engagement amongst all hasn't been conducted with diligence in mind.

The same actions David Cameron instituted against former Libyan dictator Muammar Gaddafi when the Arab Spring arouse were all the signs of unseating dictatorial rule in the Middle East and Arab nations, we can deduce that by the effectiveness of the how quickly such actions were put into place.

However it's these same actions that lead ISIS to wage war against the West for what they say destabilises the Middle East.

 They say Give Peace a Chance, maybe they should give politicians a brain full of mindfulness instead...
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