China’s Renminbi Is Approved by IMF as the Main World Currency

­­­­­­­­The Chinese currency Renminbi was selected to become one of the ones the globe’s respected currencies by the International Monetary Fund (IMF). The move apparently conforms to Chinas undisputable emerging front in economic dominance globally. The crucial impact of the move falls in the widening of the use of Renminbi in commercial purposes and enhancement of the finance segment. The new transformation has numerous effects. It upgrades and secures China’s worldwide stature in terms of global economic supremacy.  The currency joins four other respected currencies that include America’s dollar, the euro, Japanese yen and pound that had been previously designated by IMF. The recognition of  Renminbi creates a reflection of new improbability regarding  China’s economic stands and uncovers a perusal into the country’s  financial system and structure. To eventually reach the IMF targets, China has been compelled to restructure its strong grip and tight control on the currency that resulted in the immediate devaluation of the Renminbi. This move had shaken the worldwide market in August 2015.

The impact of the move is also notable in term of the injection of fresh volatility  China’s economy.  The China economy has been slowing down. According to I.M.F. designation,   it has the sole mandates of bestowing global significance under its accounting segment. The standards under which Renminbi was promoted serves the benchmark ranks and rules that entails measuring reserves that countries have in holding safeguarding of the home economies during financial troubles.  The promotion of the Renminbi also indicates that China had surpassed the safety, reliability and freely usability that considerable demands outlined by IMF.  The new roles of the currency entail adoption as the currency for disbursement and paying of the international bailouts properly denominated IMF’s accounting segment. Such tasks ignite memories of Greece’s debt deal where IMF intervened to help the nation financially. The commencement of the use of the currency commences in September 2016   and has significant benefits to China.  The change lifts Renminbi’s new ranking to elevate the international monetary arrangement and preserve global financial steadiness. The recognition of the currency has effects in portraying the position of China in the global map of business and perhaps global control.  It denotes the warning control of Europe and emerging economic block in Asia.

The adjustments also define the   IMF new stabilized currency to use at eight percent (8%)  -British pound, eight percent for Japanese yen, eleven percent (11%) Chinese Renminbi.  Euro has thirty-one percent (31%) and American dollar has forty-two percent (42%) use. According to IMF, the uplifting of Renminbi does not necessarily show that China’s economic renovation and transformation has been achieved. The change only allocates new favors to the currency internationally.  China has ensured massive control of the monetary structure in the country especially with its regards to its Communist Party entrenched roles in swaying the court and legal protections in the country. Such typical sticky issues may limit the international appeal to the currency. There are also new impacts and effects in the emerging transformation in the currency dynamics that may lead to the creation of new geopolitical concerns. As now, China sits back and celebrate its new success after Beijing’s enhanced effort of raising Renminbi as a strong challenger to the American dollar that can be traced centuries back.

I.M.F’s primary responsibilities were to ensure that there was adequate stability in the global monetary system, where all exchange rates were transacted between the state and its citizens including international payments. In a bid to achieve its goals, it considered adding the Yuan as one of the global currency. This was one of the milestones aimed to ascent towards achieving international reliability for a stronger representation in the global economy  (International Monetary Fund, 2015).

IMF aims

  • To support worldwide monetary cooperation;
  • Aid in the growth and balanced expansion of global trade;
  • To support trade stability;
  • To avail resources that will help members with their payments challenges

The Yuan now officially recognized as one of the global currency. This move showed a promising indication of the changing vibrancy of the world’s economy. Its introduction implied that most of the central banks that were likely to withhold much of their reserved foreign exchange in the dollar will have a different alternative currency to consider. This is because most of the emerging economy countries have strong relationships with China, and their reserves could replicate in this relationship  (International Monetary Fund, 2015). With now China’s currency approaching the criteria of freely usable, and the pace at which it’s gradually rising as the Chinese global currency will be equaled by the open outflows. The Chinese bond market is now rated as the third but only a foreign ownership of only 3 percent. As countries will increase the number of reserves parked in the Yuan this percentage will rise to even 20 percent of the owed bonds.

In conclusion, as China is aiming to crucially honor other nation’s sovereignty and make policies without fear of global criticism or any intervention, the RMB will reserve a great percentage in the international currency market. It will remain other countries who have been sanctioned from doing business to the west hence making sanction rules unstable ground value.

 

Indian Mutiny and the Taiping Rebellion against Globalization

The globalization of Chinese and the Indian societies can be traced back to the time of the Indian Mutiny and the Taiping rebellion.  The state of the globalization of the two countries has a mark of origin from the two movements. The two movements, the Indian Tutiny, and the Taiping rebellion ruled Indian and China at the same. This paper will embark on the reaction of the indigenous people from each country as far as the attempt to globalize their country was concerned. Both the Indian mutiny and the Chinese Taiping rebellion held different views and policy as far the development and transformation of their society and the way of life was concerned. The role of each movement will be analyzed independently. However, the conclusion will outline their differences.

Chines Taiping rebellion

The Taiping rebellion was in leadership between 1814 and 1864, under the leadership of a Christian, Hong Xiuquan. This movement came at a time when the Chinese country was under massive corruption, and leaders were not caring about the welfare the local people. It is at this time that the leadership of the Manchu dynasty was at the peak.  This administration had no heart of the people and acted not for the benefit of the Chinese people but for their personal gain. Hong, who was an active Christian, led the Chinese to their liberation. He said that God sent him, as the second brother of Jesus, to come and liberate the Chinese people from the chain of poverty, corruption and poor governance. He founded the Taiping movement that was to see China transform into a modern society.  Having studied priesthood in Europe, he knew what was meant by having a good government, people sovereignty, freedom and an operating economy. Hong led the Taiping rebellion against the ill actions of the Manchu dynasty government that were meant to suppress the citizens so that the leaders would continue to remain in their leadership positions at the expense of the poor Chinese nationals. The rebels sought to rebuild and purify China to make it a place where everybody would be proud to live. They began the battle by recruiting and training the army that was to help them approach and deal with the Manchu government that saw the people of China succumb to poverty and miserable life. The movement, together with the help of the European Christian missionaries, saw the Manchu administration come down.

The Taiping rebellion was now in power and started its journey for reforming the County. This movement had the support of the locals, who had for a long time had suffered under the leadership of the Manchu administration. Unlike the conservative Manchu administration that was not open to change, the Taiping rebellion was welcoming to any idea that would help create a stable government and improve the way of life of the indigenous Chinese. For, instance, the Taiping rebellion never objected the penetration of the British government into their territory. Hong convinced his supporters that the British missionaries would bring about change in the religion. For a long time, the Chinese religion was characterized by worship of idol gods held culture and traditions that Hong and his movement highly objected. The Chinese locals, with the help of the Taiping rebellion, they welcome the European Christianity. Having studied Christianity in Europe, Hong was sure that the new form of worship would help people grow spiritually and abandon out-fashioned worshiping styles. As aforementioned, Hong called himself the savior, liberator and the younger brother of Jesus that was sent by God to liberate and transform China. With time, the Taiping rebellion was in full control of the Chinese government. They allowed people who came with different ideas that would transform what Hong described as an ill and rotten society. Most of the locals supported the work of the missionaries who saw them leave their traditional way of worship to join Christianity. Long before, Buddhism and Confucianism dominated the Chinese religion.

Other than the missionaries, they also welcome British investors and administrators. With time, the Taiping rebellion structured the government with the help of the British. Schools, hospital, social facilities, and infrastructures were developed. Access to quality medical was achieved. The Chinese were employed to work in textile companies that were owned by the British government. The life of the indigenous people changed after supporting Hong Xiuquan to overthrow the dynasty of the Manchu administration. A majority of the Chinese communities upheld the new form of religion and were happy with the leadership of the Hong who was a close ally of the Britain government. The journey to globalization was different in India under the leadership of the Indian mutiny.

Indian Mutiny Rebellion

As opposed to Taiping movement that was open to change, the Indian Mutiny was conservative and fought hard against any form of transformation that see the change in their society. As aforementioned, the Indian mutiny existed and operated at the same time as the Chinese Taiping rebellion. The difference between the two movements is the country each movement represented and the policy each held as far the transformation of the society was a concern. The Mutineers warned against any mean to change the Indian society. For instance, the mutineers, war with the European missionaries who came to change the way of worship of the Indian people. The movement was conservative and was not open to change. The movement was able to convince its followers and supporters not to embrace any mean that would transform their society. Society transformation must go hand in hand with the change in beliefs, traditions, culture and the custom of the community. People have to become civilized and start approaching things from a rational point of view. The view of the Indian mutiny was different. They made the locals that any change to their society would change their country to worse. The Indians were not ready to let go of their traditions.

Unlike the Chinese society that transformed under the leadership of Hong, the Christian leader of the Taiping movement, the Indians remained with their culture and traditions. In the beginning, they barred the penetration of the British Empire into their country arguing the European would no better than making them slaves, take their jobs, and exploit their country. Studies and records show that despite the fact that the British managed to penetrate into India, the Indians did not welcome whatsoever. They remained adamant to any change that the Briton came with. They believed that it was an abomination to leave their culture and adopt a culture of another person.

The policies of the mutiny administration were not supporting globalization in any way. Instead, they put obstacles to the same. Under the leadership of the mutiny rebellion, the impact of globalization was not achieved in India as it was realized in China.

Conclusion

The globalization of any country depends on the acceptance of the locals and the government to welcome and embrace change.  If the indigenous people remain conservative in their beliefs, traditions, and customs, it is hard to experience any change. As seen in this paper, the Indians, under the leadership of the Mutiny were blinded to accept the waves of change that happened in China. People must be ready to let go of their traditions and customs that add no value to their life. The proverb “change is like a rest” is just clear and to the point. The Indian remained chained by their traditions and old cultural practice because of rejecting globalization. Becoming modern have to involve civilization to a great extent; the Indian mutiny rejected any attempt that would civilize the people. They made the locals react to any form of civilization and globalization. The opposite happened in China under the leadership of the Taiping.