World Gold Council’s Post

Asian central banks are adopting innovative strategies to protect their currencies as concerns about sustained higher US interest rates and escalating global tensions weigh on risk assets. Tap the link in our bio to read more. #AsianCentralBanks #CurrencySafeguard #GlobalUncertainty #MonetaryPolicy #EconomicStability #FinancialInnovation #CentralBanking #ForexMarkets #AsiaEconomy #ReserveCurrency #ForeignExchange #EconomicResilience #bankingsector

https://lnkd.in/gHF9GMQ8 African and Asian central banks less concerned by geopolitics Central bank reserve managers’ barriers to investment in Chinese assets, % of respondents "The distinct schism between Sub-Saharan Africa and Asia Pacific on one hand and Latin America and Europe on the other suggest a possible friendshoring of international reserves. The former group are more likely to diversify towards the renminbi due to optimism on China’s economy and investments and are less concerned by geopolitics and market transparency. This realignment in currency markets will be gradual but adds to the sense that the global economy is fracturing between the US and China." #China #Renminbi #Dollar #US #Africa #Asia

In Sal Provenzano's latest article "Exploring China's Economic Crossroads: Amidst global divergence in central bank strategies", he delves into the challenges faced by The People’s Bank of China (PBOC) and how they have affected the world's second largest economy. As you can see from our data below, we have seen significant US Dollar appreciation versus CNY. During this last month period alone, CNH has depreciated approximately 2.8% vs US Dollar. 💡 Find out more: https://lnkd.in/ehN7BeAZ #marketdata #ChinaEconomy #MonetaryPolicy #GlobalFinance

It's observations and insight like this from SME's like our own Sal Provenzano that underpin why so many global firms entrust TraditionData to provide essential market data from across the APAC region. Great intel!! #marketdata #chinaeconomy #apac #fxmarket

Kleos: Investors are cautious and closely monitoring central bank decisions and developments in the Chinese property market. The outcome of these events and their impact on global markets will depend on various factors, including central bank policies and economic data. #Asia #AsiaEconomy #Investors #Investments

<All this intervention comes at a cost. It tightens financial conditions, undoing some of the monetary easing the central bank is pursuing. Although a slightly more stable yuan can be engineered, it produces a somewhat less powerful monetary stimulus. China can have a little of everything. But not too much of anything. > #china #fxrate #monetarypolicy

LEAD FEATURE: A matter of interest: How property investors should think about Asia Pacific price correction and discovery in 2024 by Benjamin Cole As 2024 unfolds, the prospects for Asia Pacific commercial real estate are better than at any time since the COVID-19 pandemic seized the global stage in 2019. After the market-warping lockdowns and business restrictions of the pandemic era, property investors in Asia Pacific then faced rounds of inflation-fighting rate hikes by major global and most regional central banks. Even the two largest Asia Pacific central banks, the Bank of Japan and the People’s Bank of China, moderately joined the global parade of monetary-policy tightening, despite modest inflation rates in both nations. THANKING OUR INTERVIEWEES: Dr Richard Barkham, CBRE Andrew Moore, Schroders Capital Seema Shah, Principal Asset Management

<When economists pass judgment on exchange-rate regimes, they like to invoke the monetary-policy “trilemma”. A country might want a stable currency, free capital flows and an independent monetary policy, which can respond to the needs of the domestic economy, regardless of what central banks elsewhere are doing. There are, however, intrinsic tensions between these objectives. And so, sad to say, a country can choose only two of the three.> #china #monetarypolicy #exchangerate https://lnkd.in/gZZsgR2P

The latest World Gold Council report on global central banks buttresses my ongoing advocacy since 2017 --,Global central banks will be better able to fight inflation, build resilience and enhance competition by implementing my Optimal Reserve Ratio (Gold Reserve / Foreign Reserve) regime, in tandem with orthodox monetary policies for sustainable inflation targeting. This action is necessary as the frequency and severity of global economic shocks will continue over the next decade. Further, climate change and the demand/transition for a greener future will continue to push upward pressure on inflation. As practical as possible, advanced countries and emerging markets economies should harmonize their ORR and interest rate policies for sustainable impact.

Many of the major central banks (excluding Japan) are beginning or set to begin interest rate-cutting cycles this year. Here are four fixed income themes we believe could present investors with opportunities during the remainder of 2024. Key takeaways: - In anticipation of future rate cuts, we favour steepeners in the US and Germany, while monetary policy normalisation in Japan over the coming years favours a flattening yield curve expression. - Following a high degree of correlation in the performance of developed bond markets, diverging economic outlooks will likely open up relative value opportunities across sovereign bond markets. - Caution is warranted in corporate bonds – especially high yield – given rich valuations. As economic performance and monetary policy diverge, and the US dollar starts to face headwinds, active currency management is set to play an increased role in fixed income portfolios. By Julian Le Beron, CIO Core Fixed Income and Ranjiv Mann, Senior Portfolio Manager, Core Fixed Income at Allianz Global Investors #NavigatingRates #FixedIncome