Samson: Markets | Tue Apr 12, 2016 3:33 pm EDT
U.S. to push G20, IMF members on currency, infrastructure issues
The United States will keep currency issues on the boil during this week’s meetings of the G20 major economies, International Monetary Fund and World Bank, urging faster progress toward market-driven exchange rates, a senior U.S. Treasury official said on Tuesday.
The official also told reporters the United States would try to encourage greater investment in infrastructure as a way to boost near-term demand while also increasing longer-term growth prospects.
“Throughout the upcoming discussions, we will emphasize the importance that all G20 members honor their commitments to move more rapidly to more market determined exchange rate systems, avoid persistent exchange rate misalignments and refrain from targeting exchange rates for competitive purposes,” the official said. LINK
Jay: Well imo…. the US saying get this gcr done because china is going gold backed on Tuesday and plan to set the gold mkt in yuan and NOT the $…
All imo.
Nice to see the panic to get this done. Especially when u consider the emergency meeting attended by the Prez, VP and Yellen. Btw…that was the 1st time in US history that the 3 spots met at the Fed…FACT.
ALSO KEEP IN MIND THE UN RATES THAT ARE DO TO BE POSTED ON THE 15TH WICH IS 2 DAY BEFORE OR 2 DAYS AFTER. SO 13TH TO THE 17TH…HMMMMMM…
IMO OF COURSE
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Walkingstick: Yuan-based gold benchmark ready to launch
2016-4-13 22:18:01
Banks, miners, jewelry retailer to participate
Top Chinese banks and gold miners, along with the world’s biggest jewelry retailer, will be among 18 members taking part in the nation’s new yuan-denominated gold benchmark, a source familiar with the matter said.
Two foreign banks will also join the benchmark-setting process when it launches on Tuesday, marking China’s biggest step to become a price-setter for gold.
As the world’s top producer, importer and consumer of gold, China objects to having to depend on a dollar price in international transactions and believes its market weight should entitle it to set the price of gold.
A yuan gold fix is not expected to pose an immediate threat to the gold-pricing dominance of London and New York, but it could ultimately give Asia more power, particularly if the Chinese currency becomes fully convertible.
Industrial and Commercial Bank of China, Agricultural Bank of China, Bank of China, China Construction Bank and Bank of Communications are among the 10 Chinese banks that will participate, said the source, who declined to be identified because he was not authorized to speak to the media.
Two foreign banks will also join, the source said, without naming them.
Chow Tai Fook, the world’s biggest jewelry retailer, Swiss trading house MKS and miners China National Gold Group and Shandong Gold Group will also be members.
MKS confirmed it will take part, while Chow Tai Fook declined to comment.
The Chinese benchmark price will be derived from a 1 kg contract to be traded on the State-run Shanghai Gold Exchange (SGE), which will act as the central counterparty.
The price, to be quoted in yuan per gram, will be set twice a day based on a few minutes of trading in each session.
The spot benchmark in London is set via a twice-daily auction on an electronic platform with 12 participants after starting off with six.
The London fix, which was previously set via a teleconference among banks, was replaced by electronic auctions after a shake-up in benchmark setting following a scandal over rigging of the Libor interest rate broke in 2012.
Support from foreign banks will be crucial for the international use of the yuan benchmark, but China has struggled to get them to sign up due to sensitivity around benchmarks amid scrutiny by regulators.
http://www.globaltimes.cn/cont…..8422.shtml?
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UPDATE 1-China’s big four banks, StanChart, ANZ to join yuan gold benchmark
By A. Ananthalakshmi
Top Chinese banks, alongside Standard Chartered and ANZ, will be among 18 members to join a new yuan-denominated gold benchmark that signals China’s biggest step towards becoming a price-setter for the metal.
As the world’s top producer, importer and consumer of gold, China has baulked at having to depend on a dollar price in international transactions, and believes its market weight should entitle it to set the price of gold.
The yuan gold fix, to be launched on April 19, is not expected to pose an immediate threat to the gold pricing dominance of London and New York, but it could ultimately give Asia more power, particularly if the Chinese currency becomes fully convertible.
The Chinese benchmark price will be derived from a 1 kg-contract to be traded by the 18 members on the Shanghai Gold Exchange (SGE), which will act as the central counterparty.
The price-setting process will include China’s big four state-owned banks, Industrial and Commercial Bank of China , Agricultural Bank of China, Bank of China and China Construction Bank, the SGE said in a statement on its website.
Bank of Communications, Shanghai Pudong Development Bank, China Minsheng Banking Corp , Industrial Bank Co, Ping An Bank and Shanghai Bank will also participate.
Bank of China (Hong Kong), retailers Chow Tai Fook and Lao Feng Xiang, Swiss trading house MKS, Chinese miners China National Gold Group and Shandong Gold Group will also be members, SGE said.
The benchmark price, to be quoted in yuan per gram, will be set twice a day based on a few minutes of trading in each session.
The spot benchmark in London, quoted in dollars per ounce, is set via a twice-daily auction on an electronic platform with 12 participants after starting off with six.
The London fix, which was previously set via a teleconference among banks, was replaced by electronic auctions after a shake-up in benchmark setting following a scandal over rigging of the Libor interest rate broke in 2012.
Support from foreign banks will be crucial for the international use of the yuan benchmark, but China had struggled to get them to sign up due to sensitivity around benchmarks amid scrutiny by regulators.
Reuters reported in January that China had warned foreign banks it could curb their operations in the domestic market if they refuse to participate in the benchmark-setting process.
Standard Chartered and ANZ, the two foreign banks participating in the fix, have gold import licences in China. HSBC also has an import licence but was not named by SGE as one of the participating banks. (Additional reporting by Shanghai Newsroom; Editing by Ed Davies)
http://www.reuters.com/article…..SL3N17G2W4
