IMF increased the Chinese Yuan's weighting in the Special Drawing Rights (SDR) currency basket to 12.28% from 10.92% in its first regular review of the SDR valuation since the Chinese currency was first included in the basket in 2016, the Chinese central bank, PCB, reported on Sunday.
The Ukraine war which has impacted on Russian markets and particularly the plunge of the ruble, should not be a major cause of concern for China-Russia bilateral trade since a growing percentage of business is done with the Chinese currency Yuan, as the two countries move towards de-dollarization, according to financial circles in Beijing.
Following several currency swaps by which China has helped to support the Argentine central bank depleted international reserves, the administration of president Alberto Fernandez intensified relations with Beijing and a year ago allowed transactions between the two countries to be made in Yuan.
The Chinese yuan has taken third place among internationally-traded currencies in 2020, according to a Renmin University of China report released over the weekend, which also foresees it may continue to expand.
Argentina's central bank said on Thursday that it would allow a managed float of the peso currency and abandon its current uniform daily devaluation strategy as it seeks to adapt its monetary policy amid sharpening economic turmoil.
U.S. President Donald Trump on Monday revealed he was rebuffed when he asked officials to adjust the exchange rate of the dollar to counteract what he described as repeated currency manipulation by China of its Yuan.
Investors erased US$ 393 billion from China’s benchmark stock index on Monday, sold the Yuan and dumped commodities as fears about the spreading coronavirus and its economic impact drove selling on the first day of trade in China since the Lunar New Year.
There are many factors that affect the value of currencies and influence the flow of foreign exchange, but few have a more significant impact than a trade war.
Asian shares steadied slightly on Wednesday as investors caught their breath from a searing week-long selloff, with steps taken by Chinese authorities to contain a sliding Yuan helping calm fears of a full-blown Sino-U.S. trade and currency war.
World stock markets plunged on Monday as Beijing parried US President Donald Trump's latest tariff announcements by moving to let China's Yuan currency devalue and halting purchases of US agricultural products.