Asia’s recent decades of economic growth have depended, among other things, on a remarkable period of regional peace and stability. The region will only keep growing if that can be sustained. We cannot take this for granted. The peace we have known has resulted from an unusual situation that emerged in the early 1970s, when China decided to follow Japan in accepting the United States as the primary strategic power in Asia. That has meant that US primacy has been uncontested by any major regional power in Asia, eliminating major-power rivalry as a source of tension and conflict.
The IMF says in a new report that the deterioration in developed countries is partly due to setbacks to economic growth.
In emerging economies, declines in commodity prices have affected financial stability.
In a separate report, the IMF also warns that government finances have deteriorated.
It says the risks to government finances are “rising almost everywhere”.
The reports follow a wider warning on Tuesday from the IMF about the general global economic outlook.
That downgraded the agency’s global growth forecasts and said the world economy was now more vulnerable to adverse shocks.
Top Chinese banks, alongside Standard Chartered and ANZ (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.
In a shocking move likely to crush the US economy overnight, China is refusing to make its new gold-backed Yuan, convertible from or to US Dollars. The new Yuan will be introduced next Tuesday, April 19.
When the International Monetary Fund (IMF) agreed to add the Yuan to the basket of world currencies used for Global Reserves and International Trade, they wanted China to make the Yuan more reliable as a currency. Since then, China has almost un-pegged its Yuan from the Dollar, allowing its value to fluctuate on world markets.
But for years, China has been amassing huge amounts of gold bullion; some have said their appetite for bullion has been “staggering.” And with a new gold-backed Yuan to be issued next Tuesday, the entire world will have a choice of a new currency to use for international trade: The old US Dollar which is backed by nothing, or the new Chinese Yuan, which is backed by gold. Which currency would YOU use?