As a result of these efforts, the renminbi has emerged as the second most used currency in trade finance, overtaking the euro, and the fifth most used for international payments. Moreover, it is increasingly preferred in currency market transactions and official foreign exchange reserves.

Debt instruments linked to a foreign currency

I. The reception, brokerage, and investment of third parties' funds in Brazilian or foreign currency

The date of foreign exchange applicable will be specified by the Customs General Administration.

Interest rates had decreased significantly for domestic and foreign currency.

B. Payment of contributions in currencies other than

B. Payment of contributions in currencies

Like the project company, the foreign construction contractors and suppliers will expect to be able to convert into foreign currency and transfer abroad any revenue earned in local currency.

Travellers' cheques and notes in all major foreign currencies may be exchanged at any commercial bank and most hotels and foreign exchange counters.

b Total public debt denominated in pesos and foreign currency.

The gap arising from the foreign exchange conversion of a sellable cash financial asset in any foreign currency shall be recorded into the profits and losses of the current period.

Furthermore, it led to the seizure, on the premises, of a banknote (in foreign currency) which had also been scanned and forged.

Additional expenditures deriving from inflation and currency fluctuations

Tariffs for chilled boneless beef in the EU will decline from 20 per cent plus ECU 4700 per ton to 12.8 per cent plus ECU 3034 per ton bone in pork legs, from ECU 1215 per ton to ECU 778 per ton boneless chicken cuts from ECU 1600 per ton to ECU 1024 per ton.

Moreover, the low exchange rate of the Czech currency encourages foreigners to come for cheap prostitution.

So, this rise of this sort of local currency is another really interesting phenomenon.

Foreign cash is revalued at year end and a gain or loss realized.

Three guineas a day and the expenses, which, of course, must be approved, the odd coffee, you know.

Moreover, foreign investors remain reluctant to borrow from Chinese banks in renminbi, or to issue renminbi denominated bonds in Shanghai. That will remain true as long as they fear continued outside political pressure to appreciate.

Several speakers pointed out the importance of avoiding the accumulation of foreign currency denominated debt and borrowing in local currency as a hedge against foreign exchange rate risk.

Moreover, some emerging market currencies are joining the club of international currencies for the first time. Indeed, some analysts have suggested that the Chinese renminbi may rival the dollar as the leading international currency by the end of the decade.

All foreign exchange remittances must be conducted through the Royal Monetary Authority.

depreciation of nonconvertible currencies.

The purchase and sale of foreign currency or gold as a financial asset

Conventional monetary policy operates by altering short term interest rates, which includes the central bank buying and selling short term government debt. No intervention in the foreign exchange market buying and selling foreign currency is involved.

Moreover, growth in the use of the renminbi to settle trade has been concentrated largely in the Asia Pacific region, and specifically in transactions between China and its neighbors. And demand for renminbi denominated assets remains relatively low, with a mere 1.5 of total renminbi bank deposits held outside China.

Furthermore, Chinese leaders are determined to push through reforms especially of the banking sector and state owned enterprises that will help drive forward this development. They have made it clear that one of their key goals for the next five years is to narrow the gap between the international standing of the renminbi and that of the world s great currencies, as they promote use of the renminbi far beyond the Asia Pacific region.

Report of the Reuters on September 30 in Beijing People's Bank Of China released its predetermined short term net outflow of foreign currency assets on Sunday and showed as of the end of August this year, its short positions in forward and futures contracts for foreign currencies vs local currencies remained zero for 12 consecutive months, and there were still no long position in that month.

NEW YORK So far, discussions about whether or not China should revalue its currency, the renminbi, have focused almost exclusively on the impact of the currency s exchange rate on China s trade balance. But what would an appreciation of the renminbi do to China s inward and outward foreign direct investment (FDI)?

These were money taken out in suitcases or in containers, in cash of course.

Furthermore, we have achieved a positive growth rate of 5.5 per cent and stability in the rate of exchange of the national currency.

Another interpretation of the August 11 move is that it paved the way for the renminbi s inclusion in the basket of currencies that comprise the International Monetary Fund s unit of account, Special Drawing Rights. In order to be included in the SDR basket, a currency must be widely used in international transactions.

It is worth noting that, as the market expects a more stable renminbi, the attractiveness of renminbi assets to foreign investors will also gradually increase.

Currency mismatches caused by the build up of enormous amounts of foreign currency denominated debt were also identified as a major source of instability in developing countries.

For claims stated in currencies other than Kuwaiti dinars or United States dollars, the currency exchange rate to be applied is the average rate in effect for the month of August 1990 for converting those currencies into United States dollars as indicated in the United Nations Monthly Bulletin of Statistics.

In addition, we stress the importance of tracing the monetary transactions related to that area.

16 For details, see David M. Cheney, Dealing with the Unexpected The IMF s Response to the Middle East Crisis (Washington, D.C., International Monetary Fund, August 1991).

Since mid August, when Chinese policymakers startled the markets by devaluing the renminbi by 2 , China s official intervention in foreign exchange markets has continued, in order to prevent the currency from falling further. The Chinese authorities have been selling foreign securities, mainly United States Treasury bonds, and buying up renminbi.

That required, inter alia, more effective and focused IMF surveillance.

These exclusive affairs of State include external relations, defence policy and monetary policy.

Of course, China stands to gain much from the renminbi s emergence as an alternative international reserve currency, sharing in the exorbitant privilege that the US currently enjoys by virtue of the dollar s global status. Beyond the convenience of conducting international transactions in local currency, China would be able to take advantage of seigniorage safe in the knowledge that it would not face a balance of payments crisis.

(b) The split between domestic and overseas investments and the regional allocation within the overseas portfolio and the associated currency decisions

As foreign firms exporting to China accepted payment in renminbi, the currency piled up in their bank accounts in Hong Kong. That led to the next step Foreign firms wishing to invest in China were allowed to tap those deposits by issuing renminbi denominated bonds, and eligible offshore financial institutions were permitted to invest renminbi funds in China s interbank bond market.

That the exported goods are furnished against foreign currency convertible within three months of the date of shipment.

There is also continuing talk of creating a single monetary area similar to the euro zone.