Next WOCU weighting review - reassessment based on changing strengths of Swiss Franc, Polish Zloty and Chinese Yuan
The WDX Institute is about to rule on two matters relating to the WOCUâ„¢, or World Currency Unit; which economies, if any, should enter or leave the basket, and the weighting adjustments of the economies that are in the basket.
The institute carries out this re-weighting exercise twice per year and the changes are implemented on the third Thursday of May and November.
The Institute decided last November that there was no need for a promotion or demotion after reviewing the GDP figures published by the IMF last October.
This time they will have to decide on the re-entry of the Swiss Franc and the demotion of the Polish Zloty. This will be announced on or by May
7th and implemented on May 20th at 16:00 UTC.
Also of note almost certainly will be the continuing progress of China’s weighting in the basket. When the WOCU was first conceived in 1996 the top four currencies in basket were Sterling, the Yen, the Dollar and the Euro; and, next on the list some way down, was the Canadian Dollar.
Now the Bric countries’ progress and other changes are well represented in the Wocu and its currency neutrality role well-exhibited.