Role of Yuan in Influencing value of Dollar

Overview As on date much has been talked about Evergrande and its contagion effects but how does contagion effect get triggered is the key point. While the whole media claims that “What happens in China remains in China” but the situation as on day is telling us different Scenario. Before going into depth of ContagionContinue reading “Role of Yuan in Influencing value of Dollar”

Reverse Repo Data

For last two months we have seen huge spike in Reverse Repo Market where in the size of reverse repo is touching trillion dollars and more daily. The charts attached below gives a eagle eye view of what is happening with this liquidity: The excess liquidity which Central Banks have created is now being parkedContinue reading “Reverse Repo Data”

Update on China Debt

SAFE Releases China’s External Debt Data at the end of March 2021 Annexed table:China’s Gross  External Debt Position by Sector,End of March 2021 End of March 2021 End of March 2021 (Unit:100  million RMB) (Unit:100 million US dollars) General Government 26596 4047    Short-term 957 146      Currency and deposits 0 0      Debt  securitiesContinue reading “Update on China Debt”

Global Update – Evergrande (Part 2)

We all know that major world economies are roiling in debt. Recently published figures indicate the global debt has reached 296 trillion dollars in the second quarter of 2021 (IIF Global Debt Monitor Sept 14, 2021). Debt to GDP ratio is now around 350%. What is interesting is that from 2014 to 2020, the GlobalContinue reading “Global Update – Evergrande (Part 2)”

Indian Manufacturing – Impact of PLI Scheme

Asian economies have generally been a manufacturing base for most of the European & American consumers. China, Japan, South Korea, Thailand all have significant contribution of GDP from the manufacturing sector. India, on the other hand, generates 60% of its GDP from the service sector. Manufacturing has been stagnating in the range of 13% toContinue reading “Indian Manufacturing – Impact of PLI Scheme”

Analysis of the Current Market Crisis (Part 2)

As we discussed in Part I, while the virus may have been the needle, the bubble was already looking to deflate. Global economies were seeing lower growth projections. China had already reduced its GDP growth estimate to 6% from 6.5% with analysts further reducing target GDP Growth to below 5%. Similarly, India’s GDP growth dippedContinue reading “Analysis of the Current Market Crisis (Part 2)”

Analysis of the Current Economic Crisis

Part – I The world is going through a global economic crisis which is historic in nature. While the Covid-19 pandemic has certainly played a major role, it is by no means the only reason. It is our understanding that the economic crisis was in the making prior to the pandemic, as unrestricted credit growthContinue reading “Analysis of the Current Economic Crisis”