Chinese Renmninbi is on the launch pad of being a world currency. The efforts by China to convert it into a hard currency substituting the US Dollar may reach a finishing point at the March end scheduled BRICS meeting at New Delhi. China already has adopted a clear stand against the US Dollar as the global currency and suggested that Dollar should be replaced by IMF’s Special Drawing Rights. It is not just the hard currency ambitions that motivate China to provide renmninbi loans to other BRICS countries. The country has a vast foreign exchan
The last fortress against global recession is coming down. Chinese premier, Wen Jiabao in his speech to the parliament has declared that the problems in the world economy are penetrating into the Chinese economy. He said the government cuts the targeted GDP growth rate for this year to 7.5%. The premier has described that the evolving financial crisis and structural problems in the domestic economy are posing downward risks. “The global financial crisis is still evolving. Some countries will find it hard to resolve the sovereign debt crisis anytime soon.” Wen commended about the situation. The C
India and China are having big potential in their bilateral trade. It is expected that both of them will lead the world economy in the coming decades. They are the fastest growing and they belong to the top 4 biggest economies of the world. China and India are the largest populated countries as well. Perhaps, the most important aspect from the trade point is that both countries share boundaries and this means that the scope for cross border trade is bigger. Justifying to these positive factors, India- China trade is growing at a high pace. Trade between the two has reached a figure of US $75 billion in 2011.
Europe’s campaigning for securing funds for Greek bailout from the rest of the world has got a set back as the G20 meeting asked Europe to construct a bigger firewall on its own. Over the last few weeks, Europe was making efforts to secure money from the G20 countries through the IMF route. Before the Mexico City meeting of the G20, many countries especially from the emerging world were passive to the EU efforts. At the same time, many of them were critical of the EU method of exerting additional pressure on IMF for sorting out the debt problem. In the G20 meeting, the European efforts got a setback mainly because of the rather surprising opposition from the US. The U
“The people, who were here yesterday, are not here today and will not come back” says a Malayalam funeral song. This is what is happening to the electronic industry right now. Kodak with its ‘golden moments’ is long lost after leaving nostalgic pains in the hearts of millions. Japan’s electronic industry is in a mess. Sony, Sharp and Panasonic have recorded a collective loss of US $17 billion in 2011. On the other side, fierce innovators are establishing from the new lands like South Korea and China. In nearly one hundred years of its history, the electronic industry was witnessing rapid changes over the last two decades. Computing and communication a
The Chinese economy which had withstood all the global crisis situations over the last twenty five years is now showing signs of yielding to the current world recessionary pressures. Latest quarterly GDP growth rate trends, factory output data by various rating agencies indicate the Chinese economic growth rate is coming down from its traditional dragon figure of nearly 9%. Bloomberg has estimated Chinese growth rate for 2012 at around 7.5%, compared to 8% estimate it prepared for the crisis year of 2008. Besides slowing trade and growth, few other macroeconomic problems are there for the Chinese regulators and the government to deal with right now. Steadily increasing inf
Next couple of weeks will see quick political engagements across the globe for securing funds for the second bailout package for Greece. This time the EU leaders are chasing the present heavyweights of the global economy, especially the emerging countries to mobilize funds for the $170 billion aid package to Greece. The US has already indicated that it will not contribute to the IMF to finance the bailout. Hence, the EU leaders are working hard to secure money from China, Japan, India and other emerging countries to finance the next phase of the Greek bailout. The EU leaders in their plan of disbursing the stressed Greek assets all over the world using the IMF window, implic
India may not contribute to the IMF sponsored efforts to fund the next phase of Greek bailout. A hint on this is visible from the fact that Finance Minister Pranab Mukherjee will not be participating in the coming G20 meeting of the financial ministers scheduled to begin on February 24 in Mexico City because of the Budget preparation work at home. India’s reluctance to join the IMF lead bailout initiative is to be read along with the attitude of other major G20 countries. On the previous day, Japan and China decided to contribute to the Euro-zone rescue efforts. The Japanese Finance Minister Mr. Jun Azumi hinted that Japan and China are ready to put money into the IMF
One can easily observe that the economic weight of Asia is rapidly increasing. Of the six largest economies of the world, three are in Asia, and of these two, China and India, are the fastest growing economies of the world. During the last few years, the world economy has been moving forward driven by the growth rate of these two most populous emerging markets. Performance in terms of growth rate, GDP size, trade share, industrializati
The newly built African Union Head Quarters at Addis Ababa now can be seen as a monument of China’s increasing engagement in the continent. The head quarter has been freely built by China spending $200 mn. China’s effort to make stronger relationship with Africa by using money power comes at ‘its’ right time when most of the developed countries are in financial turmoil. Main purpose of China’s exercise is to consolidate its economic engagement with Africa. China is buying large number of African assets especially resource and mineral based assets over the last one decade. Security of critical resources is important for China to feed
Dictionary on Indian Economy
- Logic of withdrawing Rs 1000 and Rs 500 notes
- Raghuram Rajan: The Gladiator returns to Chicago
- Why the GST reform is transformational?
- Good intention but poor thinking - what troubles demonetization?
- India Black Money Report: CBI underestimates black money at Rs 25 lakh crore
- High interest rate rather than inflation is the macroeconomic problem for India right now
- Japan’s first trade deficit in 30 years is part of the Global Shift
- Why we need an emergency monetization plan as well?
- Arvind Subramanian rocks with 'Chakravyuha' in Economic Survey
- NREGS: give respect to the tax payer’s money