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Renminbi a global reserve currency by 2015
Weekly investor research
15 December 2014
The Chinese renminbi is now a prime candidate for inclusion in the IMF’s SDR, meaning global reserve currency status in 2015.
This is only the start of the rise of the Renminbi, which we believe will compete directly with both the Euro and the Dollar and
outperform both due to China’s dramatically stronger fundamentals. We also discuss how Saudi Arabia will adjust to lower oil
prices and review how falling prices have seen falling inflation rates across a number of EM countries. The Russia-Ukraine story
is moving and Russia hiked rates again. Plus we note issues of relevance to serious investors in Mexico, Brazil, Malaysia,
Turkey, India and Nigeria. As for the global backdrop, Santa is coming, so the markets are getting more illiquid and volatile; we
recommend a healthy dose of discounting of the price action in the next few weeks.