Marketwatch reported the following this morning:
“China’s exporters could be among the winners from a plan to bolster the International Monetary Funds’ war chest,
as agreed at the G20 meeting in London this week, with the funding seen as key in reviving demand among some of
the fastest-growing consumers of Chinese goods.”
The article cites the following factors:
- Tripling of lending power to the IMF to around $750 billion
- Plans to make $250 billion available to bolster trade financing
- A $250 billion expansion in the IMF’s reserve currency
With 30% of China’s GDP growth reliant on exports and much of the above slated for developing nations that are important to China’s export industry, recover may now come even sooner than expected.
Finally, the apparent agreement of the G20 to avoid protectionist policies also serves as obvious good news for China.