As China is gearing up to grab global financial hegemony from the United States, the world has witnessed its breakthrough in a recent development.
The unexpected 3% depreciation of the renminbi on May 3 shocked the whole world, resulting in turmoil in global financial markets, a sign that China’s economic clout has surpassed that of the US, Japan and European countries and that the renminbi is more influential than the US dollar, euro, Japanese yen and British pound. Continue reading
Following a trip to Kazakhstan, Belarus and Russia in early May, President Xi Jinping of China received the visiting Indian prime minister, Narendra Modi. Beijing is stepping up efforts to push its “Belt and Road” initiatives, as these countries are all key players in China’s Silk Road Economic Belt and the 21st Century Maritime Silk Road plans and have signed economic cooperation deals involving huge sums.
Through its Silk Road Fund and the planned Asian Infrastructure Investment Bank (AIIB), China has also established a mechanism similar to the Marshall Plan and the Bretton Woods system that helped the United States build a dominant position after World War II. Continue reading
The recent accumulation of gold by Russia’s central bank has sparked a discussion on whether gold standard would be an appropriate monetary policy measure for the struggling economy.
MOSCOW, December 4 (Sputnik) — Russia’s Central bank has demonstrated an increased scale of gold-buying this year, triggering diverse speculations both in the media and the expert community on whether it is a simple measure of supporting the price for the domestically produced metal, or part of a complex strategy in the economic standoff with the developed world. This way or another, there are voices suggesting its high time for Russia to introduce a gold exchange rate for the nation’s currency amid the prolonged ruble’s plunge in order to boost living standards, consumer demand and spur manufacturing sector. Continue reading