After RMB joining SDR, the CNY exchange rate started to decline and by 20:00 on 11th Oct, the rate is below 6.71. PBoC claims this decline after Nationanl Holiday is probably because of a serious of news happened during seven days. JPY increased, Britain left EU agenda was made. However, PBoC still think this decline is normal since the devaluation of RMB is less than other emerging economic entities.
Interviewed by Sputnik Radio,Geraci argues that: “Chinese’s model is indeed a system that is not in touch with the modern world, but it is the best system for China because China lives in a different era, because China’s level of development is not comparable with what we have in other parts of the world. It is like a country that lives a century earlier, but the system that China has now is probably the best for China in this historical moment. We should be careful when we criticize China on monetary policies as we may find out that they are actually more reasonable than those of ECB and FED.”
According to Citigroup report, in Sep, Tianjin, Foshan, Changzhou, and Changsha is exceeding 100% of house voluume turnover. Citigroup said although Chinese real estate industry is in a huge bubble, but the international economy is also facing the same bubble. Current city governments’ restriction on real estate is a positive signal that government is trying to change this situation. Jianlin Wang of Wanda said the biggest problem now is the fast growing in 1st and 2nd tier cities but decreasing price in small cities. The rate of houing vacancy is to high.
Geraci on CCTV Dialogue calls for a European Union to stick to economic cooperation only and to re-think grand plans for momentary and political integration. That is break up of the Euro. He also hopes that Angela Merkel loses elections next year. Today,Pope Francesco proclaimed the International Day of Peace and Geraci reminded CCTV audience that the life of an Italian, a German, a Chinese are all equally worthy regardless of religion, colour and nationalitynglish language.
Geraci on CCTV Dialogue calls for a European Union to stick to economic cooperation only and to re-think grand plans for momentary and political integration. That is break up of the Euro. He also hopes that Angela Merkel loses elections next year. Today,Pope Francesco proclaimed the International Day of Peace and Geraci reminded CCTV audience that the life of an Italian, a German, a Chinese are all equally worthy regardless of religion, colour and nationality.
Geraci on CCTV Dialogue discusses the importance of enhancing mutual understanding of cultures in order to enhance China-EU relationship. He strongly emphasised the need for cross cultural learning to start at early age, high school or even earlier. Without such early exposure, university students fail to grasp the differences and the challenges. In other words, starting at University is too late.
When Michele Geraci was interviewed by CRI, he showed great appreciation for the “Innovation growth model”, which is proposed in G20, at Hangzhou, China. “The introduction of innovation in the agenda of G20 is a very positive thing, and it is the first time that we put it in the foreground of the G20, and also, it is very important that this time the G20 is held in China. It is China that is taking the lead at this meeting, and it is China that needs to change its development model and base it more on innovation.
The RMB is now officially part of the SDR basket. Until couple of years ago, many people in China, including finance experts, had never heard of SDR. The big question is now, “What is the direction of causality between RMB Internationalisation and importance of SDR”. In other words, will the accession to SDR push for more reforms so that RMB internationalization may progress faster? Or, could it be that, since even the RMB is in the basket, the importance of the SDR will be declining, from already pretty much insignificant levels? Geraci was guest on CCTV Dialogue to discuss with issues, together with Xiang Songzuo.