MSCI, by contrast, approaches the issue from the point of view of investible equities, so its division of the world into developed, emerging and frontier markets is based on the level of market access to foreign investors, and standards of size and liquidity.
The proceeds raised in this round of financing will be used for expenditures, supplementary liquidity and repayment of bank loans.
A statement of the central bank said that some of the liquidity unleashed will be used to pay back the 450 billion yuan of the medium-term lending facility that will mature on Oct 15.
Besides, the use of credit cards will also reduce the seigniorage revenues of central banks, weaken the effects of monetary policy tools and raise the liquidity risk and credit risk in financial system.
An analyst at Tianhong Fund Management said that their company gives top priority to the liquidity of capital flows, but they also take every measure to balance the yield rate, liquidity and financial risks.
In the past four weeks, its banking regulator has launched a "regulatory windstorm" while the central bank has made the first move to ease capital controls, providing much needed liquidity to the offshore renminbi market.
Liquidity drain has sharply reduced Hong Kong's offshore renminbi market over the past year.
Analysts are also concerned by a liquidity risk when short-duration products are matched to long-term, illiquid assets such as real estate or large equity stakes.
We are living in an age of excess global liquidity, which renders a fall in sterling self-limiting.
Chinese retail investors might be tempted by real estate assets that are securitised to provide liquidity, but with insurance companies brought in to guarantee a minimum return, Mr Chen suggests.
Vina Cheung, Asia Pacific head of Rmb internationalisation, global liquidity and cash management at HSBC, pointed to further gains by the Chinese currency in payments made by individual countries: (HSBC)、(Vina Cheung),.
As the economists note, SDRs are treated as a potential claim on the underlying cash liquidity represented by the currencies that make up the basket.
Leaders also agreed to conclude work in the Basel Committee on Banking Supervision on a new global regime for bank capital and liquidity by the Seoul G20 Summit and reiterated support for a successful conclusion to the Doha Round, welcomed the fulfillment of their commitment to provide a US$350 billion increase in capital to multilateral development banks and associated institutional reforms.
Reviving lending after a financial crisis is like pushing on a string: central banks can smooth out the inevitable debt reduction process by cutting interest rates and pumping liquidity into the banking system; "":, but they cannot totally eliminate the need for companies, banks and households to pay down excessive debt.
It is part of the industry's explanation for why liquidity, the ease of buying and selling an asset, has declined in Treasury markets.
"An Asian-focused, yuan-denominated benchmark will significantly increase the liquidity and efficiency of the gold price discovery mechanism.
Themove on Monday could release around 630 billion renminbi, or about $96 billion, in additional liquidity to China's banking system, according to estimates from Bank of America Merrill Lynch.
The People's Bank of China announced yesterday it would cut the share of customer deposits banks are required to hold in reserve, injecting a jolt of liquidity into its banking system.
"We are delighted to have been able to enhance our liquidity significantly while also delivering on our commitments," said its chief executive Yusuf Alireza in a statement.
Mr Tait believes that companies would be more comfortable if deeper renminbi markets developed around the world, offering greater liquidity.
