World Desk, AnyTV, Hong Kong
Published by: Harendra Chaudhary
Updated Thu, 03 Mar 2022 03:42 PM IST
Summary
Analysts say that getting EU membership could pave the way for a solution to the current crisis. Russia has put a condition for the ceasefire that Ukraine should end its military capability and declare that it will not become a member of NATO (North Atlantic Treaty Organization). According to diplomacy experts, if the EU gets membership, then there will be a favorable situation for Zelensky in negotiations on these terms.
In the midst of the growing financial crisis in the world regarding Ukraine, the value of China’s currency Yuan is increasing continuously. On Wednesday, the price of Yuvan reached the highest level of four years. On Wednesday, the price of one dollar was 6.30 yuan. In view of this, many experts have expressed the opinion that the use of Yuvan for transactions in the world can increase in the midst of the current crisis.
Regarding this trend, a dealer dealing in forex trading told the website NikEasia.com- ‘I expected Yuvan to weaken due to the possibility of interest rate hike in the US. But in the midst of the Ukraine crisis, people are competing to buy Yuvan. Generally, the rate of interest on the US currency is determined by the dollar and the yuan. The general rule has been that the higher the return potential in the dollar, the weaker the youth.
Increase in the number of Chinese bond buyers
But recently this trend has reversed. Investing in US two-year Treasury bonds has increased after the prospect of interest rate hike in the US. But that hasn’t deterred the spirit of youth. According to experts, due to this trend, the common understanding about currency exchange has become misleading. ING Bank chief economist for the Greater China region, Iris Pang, said: “The price of yuan is rising due to the inflow of capital investment into China. This has started happening after Chinese properties were included in the global investment index.
Last year, British index maker FTSE Russell also included Chinese government debt in its benchmark global bond index. Since then, the number of people buying Chinese government bonds has increased by 80 percent compared to two years ago. Analysts say that the continuous increase in Chinese exports is driving the price of Yuan higher. China posted record trade profits in 2021. In view of this, now the number of such exporters has increased, who have started accepting Yuvan instead of Dollar for export.
Russian currency ruble dashed
According to the estimates of Bank BNP Paribas, there will be an upward trend in the price of Yuvan throughout this month. The Ukraine war is not expected to make any difference to this. Whereas, usually in war-like situations, investors reduce their investment in currencies of emerging economies and invest in currencies such as the US dollar or Swiss franc. The Russian currency ruble has crashed amid the Ukraine crisis. But the spirit of youth continues to rise. Pang said – the current Ukraine crisis has shown that Yuvan is being seen as a medium of safe investment in Asia.
Well-known Japanese market analyst David Chao has expressed the opinion that sanctions on Russia have created a favorable situation for the youth. He told Nikkei Asia- ‘The US policy of sanctions will also reduce investor confidence in the US dollar as a medium of global payment and safekeeping in the long run. This will open the way for Yuvan to take the form of an international currency.
Expansion
In the midst of the growing financial crisis in the world regarding Ukraine, the value of China’s currency Yuan is increasing continuously. On Wednesday, the price of Yuvan reached the highest level of four years. On Wednesday, the price of one dollar was 6.30 yuan. In view of this, many experts have expressed the opinion that the use of Yuvan for transactions in the world can increase in the midst of the current crisis.
Regarding this trend, a dealer dealing in forex trading told the website NikEasia.com- ‘I expected Yuvan to weaken due to the possibility of interest rate hike in the US. But in the midst of the Ukraine crisis, people are competing to buy Yuvan. Generally, the rate of interest on the US currency is determined by the dollar and the yuan. The general rule has been that the higher the return potential in the dollar, the weaker the youth.
Increase in the number of Chinese bond buyers
But recently this trend has reversed. Investing in US two-year Treasury bonds has increased after the prospect of interest rate hike in the US. But that hasn’t deterred the spirit of youth. According to experts, due to this trend, the common understanding about currency exchange has become misleading. ING Bank chief economist for the Greater China region, Iris Pang, said: “The price of yuan is rising due to the inflow of capital investment into China. This has started happening after Chinese properties were included in the global investment index.
Last year, British index maker FTSE Russell also included Chinese government debt in its benchmark global bond index. Since then, the number of people buying Chinese government bonds has increased by 80 percent compared to two years ago. Analysts say that the continuous increase in Chinese exports is driving the price of Yuan higher. China posted record trade profits in 2021. In view of this, now the number of such exporters has increased, who have started accepting Yuvan instead of Dollar for export.
Russian currency ruble dashed
According to the estimates of Bank BNP Paribas, there will be an upward trend in the price of Yuvan throughout this month. The Ukraine war is not expected to make any difference to this. Whereas, usually in war-like situations, investors reduce their investment in currencies of emerging economies and invest in currencies such as the US dollar or Swiss franc. The Russian currency ruble has crashed amid the Ukraine crisis. But the spirit of youth continues to rise. Pang said – the current Ukraine crisis has shown that Yuvan is being seen as a medium of safe investment in Asia.
Well-known Japanese market analyst David Chao has expressed the opinion that sanctions on Russia have created a favorable situation for the youth. He told Nikkei Asia- ‘The US policy of sanctions will also reduce investor confidence in the US dollar as a medium of global payment and safekeeping in the long run. This will open the way for Yuvan to take the form of an international currency.