Deutsche Bundesbank's Dombret Says Growth Has Returned to Europe

The Bundesbank has decided to include the renminbi in its currency reserves, following the ECB's lead. Despite concerns about China's capital controls and the renminbi's non-free-floating status, the decision aligns with IMF obligations. The renminbi's international use is growing, partly due to China's Belt and Road initiative. The ECB's monetary policy remains expansionary, but there's a call for setting an end date for asset purchases. The Basel deal is finalized, ensuring regulatory certainty, while discussions on cryptocurrencies and blockchain technology continue.

Why did the Bundesbank decide to include the renminbi in its reserve basket?

• To follow the ECB's decision

• To increase trade with China

• To diversify its currency reserves

• To comply with IMF regulations

How does the Bundesbank view the inclusion of the renminbi in the SDR basket?

• As a major financial risk

• As a necessary step for IMF obligations

• As an opportunity for profit

• As a temporary measure

What are the main concerns regarding the renminbi as a reserve currency?

• Its high volatility

• Its low value compared to other currencies

• Its lack of international acceptance

• Its restrictions and capital controls

What is one of the reasons for the growing international use of the renminbi?

• The renminbi's high interest rates

• China's Belt and Road Initiative

• China's low inflation rate

• The renminbi's stability

What is a potential benefit of China's liberalization of foreign ownership?

• Increased foreign investment in China

• Decreased value of the renminbi

• Reduced trade with Europe

• Higher interest rates in China

What is a challenge for the renminbi to become an anchor currency?

• Its high inflation rate

• Its lack of international use

• Its trading restrictions and capital controls

• Its low interest rates

What is the ECB's current stance on its monetary policy?

• It plans to increase interest rates

• It is considering ending asset purchases

• It is reducing inflation targets

• It is increasing asset purchases

What is the ECB's pledge regarding interest rates?

• To eliminate them completely

• To raise them gradually over time

• To keep them low until asset purchases end

• To increase them immediately

What is the significance of the Basel deal according to the transcript?

• It increases interest rates

• It reduces international trade barriers

• It provides regulatory certainty

• It introduces new cryptocurrencies

What is the Bundesbank's approach to cryptocurrencies?

• To adopt them as official currency

• To ban them completely

• To explore underlying technologies

• To ignore them entirely