Renminbi internationalisation will push ahead

2016 ◽  
Keyword(s):  
Direct Investment ◽  
Equity Markets ◽  
International Investment ◽  
Capital Account ◽  
Foreign Exchange Reserves ◽  
Content Type ◽  
Capital Account Convertibility ◽  
International Payment ◽  
Account Convertibility ◽  
International Investment Position

Subject Renminbi internationalisation. Significance The renminbi emerged from relative international obscurity to become the fifth most-used currency in international payments in just over a decade. Nevertheless, its international use as a currency of settlement or foreign exchange reserves remains small compared to the dollar and euro. Without full capital account convertibility, the benefits of its international usage have been restricted to exporters and offshore settlement centres, especially Hong Kong. Impacts Reform will raise renminbi quotas for portfolio investors, boost outward direct investment and develop China's international payment system. Incremental reforms will help rebalance China's net international investment position. In the longer term, internationalisation will benefit domestic bond and equity markets by increasing their depth and liquidity.

Fed hike may slow India's move to full convertibility

2015 ◽  
Keyword(s):  
Capital Inflows ◽  
Capital Account ◽  
Content Type ◽  
Currency Depreciation ◽  
Left Behind ◽  
Reserve Bank ◽  
Corporate Borrowing ◽  
Capital Account Convertibility ◽  
Account Convertibility ◽  
Reserve Bank Of India

Subject Capital account convertibility. Significance The debate on whether India should render the rupee fully convertible, including on the capital account, has returned following a passing statement recently by Reserve Bank of India (RBI) Governor Raghuram Rajan that India hopes soon to achieve full capital account convertibility. Many factors are encouraging this transition, especially India's comfortable foreign exchange (forex) reserves and large capital inflows. Impacts With China seeking gradually to internationalise the renminbi, Indian authorities may not want to be left behind. Unfettered overseas corporate borrowing has exposed these borrowers to currency depreciation. The IMF is unlikely to advocate removal of all capital controls.

Wooing the new Chinese businesses: five short-term policies to attract direct investment

2016 ◽  
Vol 37 (5) ◽  
pp. 3-11 ◽  
Author(s):  
Bala Ramasamy ◽  
Matthew Yeung
Keyword(s):  
Direct Investment ◽  
International Investment ◽  
Business Environment ◽  
Decision Makers ◽  
Location Factors ◽  
Policy Makers ◽  
Content Type ◽  
Economic Relationships ◽  
Chinese Companies ◽  
The Usa

Purpose The purpose of this paper is to identify location factors that Chinese managers look for when making internationalization decisions and how the factors stack up in perceived importance. Over the past ten years, Chinese enterprises have become more multi-national in nature. China’s outward foreign direct investment (FDI) has been growing at a phenomenal rate. In 2012, China became the third largest investor, after the USA and Japan; and the largest investor among developing countries. How can host governments attract more of this Chinese capital? What are some short- to medium-term policies that host governments can initiate to make their respective nations attractive to Chinese companies? Design/methodology/approach The authors consider these questions by using a best-worst choice exercise among 114 senior corporate decision makers of Chinese companies who have or are planning to globalize. We rank 16 most common determinants that influence FDI location choice and evaluate their degree of importance. Findings The authors propose five “low hanging fruits” that policy makers should consider that could ensure their countries come within the radar of Chinese multi-nationals. These include promoting a clean and efficient business environment and strengthening/establishing political and economic relationships with China. Originality/value The originality of this study lies in the methodology of the study that forces respondents to make a trade-off in their decisions, which in a way is closer to reality. The respondents are also actual decision makers in their companies with regards to international investment decisions.

Achieving capital account convertibility in China1

2011 ◽  
Vol 4 (1) ◽  
pp. 25-42 ◽  
Author(s):  
Yiping Huang ◽  
Xun Wang ◽  
Qin Gou ◽  
Daili Wang
Keyword(s):  
Capital Account ◽  
Capital Account Convertibility ◽  
Account Convertibility

Features of the Formation of Direct Investment Articles and Its Impact on the Balance of Payments and the International Investment Position of the Country

2019 ◽  
Vol 7 (2) ◽  
pp. 14-19
Author(s):  
К. Буневич ◽  
K. Bunevich ◽  
Э. Гаврилова ◽  
E. Gavrilova ◽  
О. Иванова ◽  
...  
Keyword(s):  
Direct Investment ◽  
International Investment ◽  
Balance Of Payments ◽  
Economic Activities ◽  
Economic Relations ◽  
Qualitative Nature ◽  
International Investment Position

The balance of payments and the international investment position (hereinafter referred to as the IIP) reflect the specifics and peculiarities of the country's economy. However, the data of statistical reports on the economic activities of the country represent only the final formed results for a certain period or date. They do not reflect the nature of the formation of their individual articles. For a deeper understanding of the country's economic processes, it is necessary to analyze the qualitative nature of the formation of the final articles included in the statistical reports under consideration; economic relations due to the flow of direct investment and the role of this flow in reflecting the economic processes of the country.

Capital Account Convertibility—Myth and Reality

2012 ◽  
Vol 4 (1) ◽  
pp. 71-86
Author(s):  
T. Satyanarayana Chary ◽  
G. Rathnakar ◽  
Ch. Sunder Shyam
Keyword(s):  
Capital Account ◽  
Capital Account Convertibility ◽  
Account Convertibility

Paradox of Full Capital Account Convertibility in India

Paradigm ◽  
2007 ◽  
Vol 11 (1) ◽  
pp. 28-36
Author(s):  
Hrushikesh Mallick ◽  
Udaya Shankar Mishra
Keyword(s):  
Capital Account ◽  
Capital Account Convertibility ◽  
Account Convertibility
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