Tag Archives: yuan

The recent decision by the People’s Bank of China to let the renminbi fall below CN¥7 per US dollar has little to do with trade or currency wars. Rather, it represents an important step by the PBOC toward reforming China’s inflexible exchange-rate regime.… Important because of who is saying it.Project SyndicateThe Renminbi’s Bid for FreedomYu Yongding, former president of the China Society of World Economics and director of the Institute of World Economics and Politics at the Chinese...

For the first time since March 2008, PBOC fixed the yuan weaker than 7 per USD.... Zero Hedge China Fixes Yuan Weaker Than 7 For First Time In Over 11 Years Tyler DurdenSee also at ZHRay Dalio Tells Investors 'Bet On China' As The Next Global Empire

When is China going to follow Russia and float? We argue that policymakers in China are now going to be more accepting of USD/CNY appreciation through 7: years of regulatory measures should make outflows more manageable, easier monetary policy will add upside pressure and a weakening FX is the natural means of offsetting tariffs.... Zero HedgeSomething Just Broke In The Chinese YuanTyler Durden

China needs to keep growth high enough to maintain social stability, but also must preserve external stability via the renminbi’s exchange rate. How China manages its currency during its economic policy shift could have important global consequences. China is not sovereign in its currency since it pegs to the dollar. Currency sovereignty requires floating the rate whereas as peg sets a fixed rate. This means that China domestic policy is constrained by have to manage the exchange rate...

The vast majority of economists believe that the Fed's asset holdings keep down U.S. interest rates. It is inconsistent to believe that the Fed's holdings of U.S. assets keep down interest rates here, but China's holding of foreign assets does not keep down the value of its currency. Beat the PressDoes China's 2.5 Percent Inflation Rate Really Explain the Decline in the Value of Its Currency Against the Dollar?Dean Baker | Co-director of the Center for Economic and Policy Research in...

Germany looks to the future. Uncle Sam won't be pleased. HSBC chief executive Stuart Gulliver, speaking at the same conference in Hong Kong, said that the Belt and Road Initiative (BRI) will increase the usage of RMB even further. China’s central bank announced new measures earlier this month to encourage cross-border yuan transactions in support of BRI projects. Asia TimesGerman central bank to add RMB to currency reserves: Follows ECB’s move to include China’s currency last year

Peter Schiff, the guy who has been so wrong about everything, is now saying that bitcoin is going to zero. This is why you should probably buy every single dip.Remember Schiff's predictions?QE will cause hyperinflation. The Chinese will stop "lending" to us and interest rates will skyrocket. Gold is going to $10,000.And more.Bitcoin is not a bubble. It's a symptom of the world's desire to "de-dollarize." And while it will not become any kind of mainstream currency anytime soon because of its...

Perhaps another way of putting this is that SDR inclusion is a commitment device. In addition to the practical concerns raised by Zhou, there would also be reputational costs to reversing exchange-rate and capital-account reforms. Since SDR inclusion is contingent on the IMF’s determination that the renminbi is “freely usable,” it could conceivably be reversed if the currency were to stop being freely usable. What future Chinese central bank governor will want to see headlines screaming...

Fast forward to today, when according to a statement on the Venezuela oil ministry, the country's weekly crude oil and petroleum basket "will be published in Chinese Yuan" - oddly, not in Euros as the WSJ hinted - going forward. We can only assume that Venezuela avoided the European currency on concerns that Brussels may follow in D.C.'s footsteps and impose financial sanctions on the Maduro regime next. Which meant that the only "safe" currency to transact in, was that of the country's two...

The world’s top oil importer, China, is preparing to launch a crude oil futures contract denominated in Chinese yuan and convertible into gold, potentially creating the most important Asian oil benchmark and allowing oil exporters to bypass U.S.-dollar denominated benchmarks by trading in yuan, Nikkei Asian Review reports. The crude oil futures will be the first commodity contract in China open to foreign investment funds, trading houses, and oil firms. The circumvention of U.S. dollar...