Dollar Depreciation and Renminbi Appreciation
By JC Collins
Last July I published a post predicting that the US dollar would begin to depreciate at the beginning of 2016. This date range was based on the effective inclusion date of the Chinese renminbi in the Special Drawing Right Basket (SDR) of the International Monetary Fund.
Other factors which were considered was the eventual passing of the 2010 IMF Quota and Governance Reforms in the US Congress, which did in fact happen as predicted by the end of 2015.
The start date of the Asian Infrastructure Investment Banks (AIIB) and the BRICS New Development Bank (NDB) also helped determine the date range provided. The AIIB just celebrated its official launch and it was communicated that the first infrastructure loans would be issued in the second half of 2016.
To continue reading please subscribe for full access!