Pimco Sees $3.7 Trillion Reason for Adding Yuan: China Credit

The yuan ranks in the top three on Pacific Investment Management Co.’s emerging-market investment radar, partly because of a $3.66 trillion currency pile that China’s central bank this week described as excessive.

Saudi Arabia, China and Russia ranked above 43 other developing nations when given equal consideration to reserves, short-term debt-to-economy ratios and current-account surpluses, according to data compiled by Bloomberg. Chief Executive Officer Mohamed El-Erian outlined the Pimco filters at an Oct. 10 conference in Washington. The yuan has gained 2.3 percent against the dollar this year, beating the pegged Saudi riyal and a 7.6 percent slump in the Russian ruble.