WOCU Semi Annual Re-weighting
The re-weighting of the WOCU, The World Currency Unit, was completed successfully today at 16 00 UTC. The WDX Institute’s procedures were concluded in busy markets when approximately 1.7250 Dollars equalled one WOCU. The Chinese currency at the time was worth approximately 11.5 to the Wocu. Despite being the currency of the third largest economy, soon to be second largest, the Yuan or Remnimbi is not in the SDR basket whose constituents as of January 2011 were announced earlier this week by the IMF.
The WOCU has much better application in the areas of risk management and currency neutrality according to WDX because it reflects the World’s Twenty Top Economies and is re-weighted every half year. Although our approach is totally apolitical said WDX’s Managing Director, Michael King, I will risk the comment that not having the Yuan in the SDR basket is a mystery since it may be weighted as high as second in the WOCU basket by the time of the next re-weighting in May 2011.