IMF suggested that the yuan to wait on the door mat

[DARPA]

Beijing is now unpleasant. What we did not do in Beijing to appeal to the IMF: Yuan devalued, market mechanisms of the exchange rate run, access to foreign capital to the Chinese financial markets eased, and it turns out that it was all in vain. IMF behaves with China as the EU and Turkey - promises that everything is bound to be ... but sometime later.

(Just in case I remind you that this week my blog leads crimsonalter, and that the text came from his pen. FM)

The essence of the problem: China is keen to Yuan was on the list of reserve currencies the IMF. Very. And not only in prestige, although it must be admitted that the Central Committee of the Communist Party of China is very fond of "chips", which confirm the status of China as a world power such as the Olympics or the status in various international organizations.

But now Beijing has intentions and practical side. The inclusion of the yuan in the list of reserve currencies the IMF actually make central banks of various countries to buy yuan to its foreign reserves. This, in turn, will facilitate the process of internationalization of the RMB, and it already opens up to China a lot of interesting features. If we denote the main advantage of this scenario very rough, it turns out that China will be able to enter the very limited club of countries that can quite actively used the printing press to the acceleration of the economy, well, or for patching holes in the economy.

Communication is simple: if any Albania begins to actively publish Albanian Lek (this is the local currency), the Albanian economy has received a full-fledged inflation shock, but if a similar exercise starts to deal with a country whose currency is very widely used in world trade and investment by other countries ( such as the United States or, to a lesser extent, the United Kingdom) the inflationary effect "smeared" on all holders of currency. If coarsen description even more, it can be said that China would like to make the yuan, to begin with, became a kind of "analog dollars" with all the ensuing buns.

Despite the fact that China is actively working on the creation of "doubles" the basic structures of the Western financial system, such as the World Bank, Asian Development Bank and the IMF, it does not mean that Beijing is so carried away by the launch of the Bank of BRICS that abandons attempts to get a privileged place in existing system. Some Europeans this approach seems schizophrenic or evidence of the weakness of the Chinese leadership, but the Chinese authorities genuinely do not understand what the problem is. The mentality of this. At the same time build a "competitor of the World Bank" and push the yuan in the list of currencies the IMF - this is a very Chinese behavior. Probably, for it has a special stratagem Lao Tzu or something like that.

The IMF imposes rather strict requirements for potential candidates in the elite club, which is currently composed of the dollar, euro, British pound and Japanese yen. For example, the Fund requires that the currency has been available for use without any restrictions, so it can be freely bought and sold, and that its course is not appointed by legislative means. China has tried to push the yuan in the "elite club" of currencies the IMF back in 2010, but then the yuan rather impolite shown the door, despite the statements of the Chinese authorities that the yuan - market, white and fluffy. Persuasion and negotiations continued past 5 years, and the Office of Ms. Lagarde has repeatedly praised Chinese officials for their progress on the road to a fully "free market and" yuan. November was scheduled regular meeting of the special committee of the IMF, which was supposed to finally determine whether the yuan is worthy to sit at the same table with the dollar or not. In July, the media reported that the technical experts of IMF positively evaluated the prospects of the yuan, which many observers believe has increased its chances of "hacking chart" favorite currency IMF. However, as we see prodinamili China at this time.

IMF suddenly said that the current list of reserve currencies is fixed ("frozen") for another year. The candidacy of the yuan in November course will consider, but it gets in the coveted club until the end of 2016 and even then, only if China will conduct the necessary "market reforms" and if the IMF did not come up with any more reason for the delay:

https://www.rt.com/business/312910-yuan ... cy-basket/

Act IMF looks especially cynical against the background of the fact that the same organization Washington recently publicly praised China for the devaluation of the yuan.

Director of the IMF, Christine Lagarde, said that the inclusion of the yuan in the list of reserve currencies - is not a question of the category of "if" but from "when", but that's just a specific question about when the renminbi "around the same table with the dollar "IMF management flatly refused to answer. The situation is beginning to resemble even more long-term torture in Turkey, which is still trying to find out when it will be the same in the EU, while Erdogan did not think that Turkey will take the Europeans to him immediately after the Ukraine, that is, never.

Interestingly, the Chinese media and in the statements of the officials is not observed special anger or concern. As you know, a happy man - is the one who, being sent three letters back out tanned, rested and with magnets. It is also very Chinese. The Chinese can wait a year or two, and ten, but the waiting time will likely be spent on the active development of the replacement of the IMF, which is the development of "Pula currency BRICS." Russia is quite happy with the two versions of events. If the renminbi still be allowed in the list of reserve currencies the IMF, it will help the economy of our important economic partner. If it is not empty, then China will be an extra incentive to intensify the work on the financial institutions BRICS.