The richest man in the world chooses the yuan, “I love dollars, but would make his bet on the yuan. The monetary policy of the Fed creates problems in terms of leverage and forms a” bubble “,”

As the founder of Microsoft, Bill Gates, if you choose between the dollar and the yuan, the priority is given to the Chinese currency.

“The conditions of low interest rates on a global scale - it’s very unconventional and can not last long. This situation creates problems in terms of leverage and forms a” bubble. “And out of this situation without causing a recession, it will be very difficult,” - said Bill Gates.

Earlier it was reported that in the current year, the RMB can be included in basket of reserve currencies International Monetary Fund, is now the Chinese authorities and IMF officials are “relevant negotiations.” Vice-President of the People’s Bank of China Yi Gang has said that the inclusion of the yuan in the “Special Drawing Rights” SDR increase its value the current economic situation in the world.

The Obama administration does not agree with the decision of the IMF, of the opinion that the yuan is “significantly undervalued.” But the IMF’s actions undermine the efforts of the US administration to build pressure on China. “This cut the ground from under the feet of American critics of China’s currency policy,” - said Eswar Prasad, an economist at Cornell University and a former official of China in the IMF.

However, changes in the world economic redundant system, as they say, is obvious. Beijing occupies a strong position in the global financial system, for example, in recent months, China has received strong support for its initiative to establish the Asian Bank of infrastructure investments, which will compete with the World Bank and the IMF.

Yuan is still pegged to the dollar, and as the US currency strengthened against most other major currencies, it helped to push up the value of the yuan. Adjusted for inflation, the value of currencies increased by more than 10% last year. However, against the backdrop of a slowdown in China’s GDP, some economists do not rule out that China will make efforts to devaluation of the yuan to boost exports and competitiveness of domestic producers.

The Chinese yuan is undervalued against the dollar, according to senior analyst “Alpari” Anna Bodrov. Although the situation in the last 12-18 months has improved slightly, the free conversion is no one dares to speak. On average, the yuan is undervalued by 12-13%, based on current prices. In order to become a reserve currency of China, it is necessary a greater insight into the global trading and economic processes. Celestial is working on this: China has signed currency swap agreements with nearly 40 countries. Steps towards freedom made the yuan, but China does not like to rush to such important events. On the question of the global status of the yuan will be back in 10 years.

6 May 2015

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