which would translate in an additional 1.1%
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or 6.5% of its CGB market cap. This would present a very bullish scenario
followed by Japan and Europe. Inflows to China could be
an optimistic scenario possibly leaves 2H17 on the table.
the assessment usually takes a long time.
which is used as the benchmark for more than $2tn of AUM. The
FX & EM 2017 Year Ahead | 16 November 2016
we use our global FX forecasts to obtain our independent variables.
Frankel and Wei (2007) for a detailed explanation.).
when the start of the RMB depreciation trend. We base our currencies against the SDR
onshore FX swap and forwards would be the next
although reasons vary depending on the index: 1) lack of full accessibility:
the following key obstacles for index inclusion
% (Volatile markets and USD/CNY at 8.00)
the efficacy of this is questionable. The experience
making this FX regime choice no longer tenable for China.
which was derived from the annual rate since 2015.
FX & EM 2017 Year Ahead | 16 November 2016
USDbn USD/CNY 1Y rolling standard deviation
is to raise the influence of market forces over the exchange rate.