How the Yuan Crisis Could Forge a New Currency Order

The pace of decline in China’s external currency reserves is accelerating, feeding panicky selling of the yuan and heralding a likely change in China’s exchange rate arrangements. Exchange rate pressures in China are spilling over to regional currencies and global stock markets. In January alone, China lost $99.5 billion of its dollar reserves trying to keep the yuan in its 2.0 percent official fluctuation band around 6.5419 to the dollar. In just 15 months the Chinese have lost more than $650 billion in reserves, more than the total reserves of any other country save Japan. In between massive interventions, the government has tried to stem pressure through small devaluations and increasing the costs for those shorting the yuan. This isn’t just another emerging-market currency crisis: China is the second largest economy in the world, and its response to this fire could forge the beginnings of a new currency order. Read more

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About AIWMI

The Association of International Wealth Management of India (AIWMI) is a not-for-profit organization and a globally recognized membership association for finance professionals. AIWMI primarily focuses on the broad and strategic role of developing a more robust and forward-looking training infrastructure for the financial services sector and to promote more active industry involvement and collaboration in training and continuing education. AIWMI is offering advanced international certification programs along with a wide variety of high-quality executive education programs. AIWMI programs combine state-of-the-art knowledge and skills with practical experience and insights into the functioning of the financial sector. All AIWMI courses and educational events have an intense and pragmatic curriculum. Participants are exposed to the latest developments within the financial services sector. AIWMI plays a key role in guiding the development of the financial services sector. AIWMI works with key industry participants’ viz. the Government, the Regulators, the Industries/Associations, the Corporate, the Media and the General Public to achieve its objectives. Besides enhancing technical competence and professionalism in the industry, AIWMI organizes events and facilitates discussions to promote best practices in leadership and talent development in the financial sector with an aim to become Asia’s premier center of excellence for financial education.

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