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Search resuls for: "China FX"


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China surprises with cuts to key rates to support weak economy
  + stars: | 2024-07-22 | by ( ) www.cnbc.com   time to read: +3 min
China surprised markets by lowering a key short-term policy rate and its benchmark lending rates on Monday, in efforts to boost growth in the world's second-largest economy. Minutes later, China cut benchmark lending rates by the same margin at the monthly fixing. Following the rate cuts, China's yuan dropped to a near two-week low of 7.2750 per dollar before paring some losses. He expects more rate reductions in China after the Fed enters its rate cut cycle. China's rate cuts are aimed at "strengthening counter-cyclical adjustments to better support the real economy," the PBOC said in a statement.
Persons: Larry Hu, Ju Wang, Zhang Zhiwei, Pan Gongsheng Organizations: People's Bank of, People's Bank of China, Macquarie, Greater China FX, BNP, Federal Reserve, Xinhua, Fed Locations: People's Bank of China, Beijing, China
Standard Chartered CEO Bill Winters met with the head of China's foreign exchange regulator on Monday, a month after the bank suspended new investments by its clients in the country into offshore products via a quota-based channel. "We have confidence in China's continued financial sector opening and economic transition," Winters said. "The inauguration of SCSCL will enhance Standard Chartered's ability to serve clients domestically and internationally, deepening and diversifying our capabilities in China". StanChart started hiring staff in China since 2023 as it geared up to launch the investment banking unit targeting niche bond deals, chairman of the unit said last year. Blackstone's Schwarzman held a meeting on Monday with the chief secretary of Communist Party of China, Cai Qi, a statement from China's Ministry of Foreign Affairs shows.
Persons: Bill Winters, Winters, Zhu Hexin, StanChart, Zhu, China's, StanChart's Winters, Noel Quinn, Blackstone's Schwarzman, Cai Qi, Cai Organizations: China's, Administration of Foreign Exchange, SAFE, Standard Chartered Securities China, China Development, Communist Party of China, China's Ministry of Foreign Affairs Locations: London, China, U.S, Los Angeles
China's official app for digital yuan is seen on a mobile phone next to 100-yuan banknotes in this illustration picture taken October 16, 2020. REUTERS/Florence Lo/Illustration/File photo Acquire Licensing RightsSHANGHAI, Oct 13 (Reuters) - A Chinese foreign exchange regulator official said "programmable features" of a central bank digital currency (CBDC) could help enhance the effectiveness of monetary policy tools, state media reported on Friday. China is among a host of countries developing their own CBDCs - digital tokens issued by central banks - although adoption is still in its early stages. Lu said he expected the People's Bank of China (PBOC) could explore the features to adjust rates of CBDC, which could also be used manage the macro economy. Transactions using China's CBDC, the e-CNY, hit 1.8 trillion yuan ($249.33 billion) at end-June.
Persons: Florence Lo, Lu Lei, Lu, Sam Holmes Organizations: REUTERS, Rights, State Administration of Foreign Exchange, Shanghai Securities News, People's Bank of China, Bank of International, Shanghai, Thomson Locations: China
LONDON, Aug 23 (Reuters) - The United States and China may feel some financial detente is wise at this point - even if goading one another plays well domestically. But elements of the once-feared bind of 'mutally-assured financial destruction' (MAFD) still apply. Pulling the rug out from under either - battering U.S. and Chinese demand in effect - seems to make little economic sense at least. America had new markets and investments and a seemingly durable new creditor that kept borrowing rates low and consumption up. Falling China Share of Foreign US Treasury HoldingsChina FX Reserves vs Global ReservesUS Treasury Debt Climbs as Fed Pulls Back'MAFD'But is that where the situation has landed post-pandemic?
Persons: Larry Summers, Summers, Goldman Sachs, Jim O'Neill, O'Neill, Gina Raimondo's, Stephen Jen, Eurizon SLJ, Treasuries, Deepa Babington Organizations: U.S . Treasury Securities, ., Treasury, Foreign US Treasury Holdings China FX, Global Reserves, U.S ., Commerce, U.S, Reuters Graphics Reuters, Reuters, Thomson Locations: United States, China, Washington, Ukraine, Taiwan, Hong Kong, U.S, Beijing, America
Aug 7 (Reuters) - A look at the day ahead in Asian markets from Jamie McGeever, financial markets columnist. The U.S. yield curve steepened by 20-30 basis points last week - the biggest steepening since March - and the steepening of the 2-year/30-year yield curve by 30 basis points was one of the biggest weekly moves in over a decade. U.S. fiscal worries are also growing, however, and the Bank of Japan's recent 'yield curve control' surprise has lifted Japanese bond yields. Several potential market-moving data releases and events in Asia are also due, as well U.S. consumer price inflation for July. Monday's calendar in Asia is fairly light, with Indonesian Q2 GDP and Thai inflation for July the main releases.
Persons: Jamie McGeever, JP Morgan, Diane Craft Organizations: Nasdaq, Bank of, Sony, Reuters, Reserve Bank of India, China FX, Thomson Locations: Indonesia, Philippines, Asia, Japan, U.S, China, Beijing, Thailand
China's foreign exchange regulator said on Friday it will comprehensively use policy measures to stabilize market expectations, at a time when the yuan currency faces renewed downside pressure. China's currency has lost about 4% to the dollar this year, one of the worst performing Asian currencies, pressured by widening yield differentials with the United States and signs of a faltering economic recovery. "In future, the yuan exchange rate has the conditions to maintain basically stable at reasonable and balanced levels," said Wang Chunying, spokeswoman at the State Administration of Foreign Exchange. We will adhere to comprehensive policies, focus on stabilizing expectations, and take different measures based on actual conditions to provide the market with a stable environment and expectations." She said previous rounds of external shocks had equipped regulators with the experience, tools and measures to deal with such situations.
Persons: Wang Chunying Organizations: State Administration of Foreign Exchange Locations: United States
May 8 (Reuters) - A look at the day ahead in Asian markets from Jamie McGeever. The regional economic data calendar on Monday is light, with the final reading of Japanese purchasing managers index and Taiwanese trade for April the main releases. Federal Reserve Chair Jerome Powell, for one, is very optimistic: "It's possible that this time is really different. Technology giant JD.com (9618.HK) and China's largest chip foundry Semiconductor Manufacturing International Corp (0981.HK) both release first-quarter earnings on Thursday. They do not reflect the views of Reuters News, which, under the Trust Principles, is committed to integrity, independence, and freedom from bias.
"(But) it feels like I should keep some dollars on hand, as the yuan will depreciate further." Others anticipating a bumpy ride ahead for the Chinese currency include China Southern Airlines (600029.SS). Such moves are perhaps not surprising given yuan volatility since Beijing suddenly unwound its zero-COVID strategy. "Overall, yuan exchange rate will remain basically stable at reasonable levels," he added at a March 3. news briefing. ($1 = 6.9009 Chinese yuan)Writing by Tom Westbrook; Editing by Vidya Ranganathan and Alexander SmithOur Standards: The Thomson Reuters Trust Principles.
The RBA is expected to deliver a fourth consecutive quarter-point interest rate hike to 3.35%, after inflation unexpectedly rose last year to a 33-year high of 7.8%. However, figures on Monday showed retail sales are falling for the first time in a year, a sign that higher rates are maybe starting to bite. chartGenerally speaking, Asian markets are feeling the heat from the sudden U.S. interest rate outlook shift following January's freakishly strong U.S. jobs report released on Friday. This may be the tightening of financial conditions Fed Chair Powell and his colleagues are seeking. The MSCI Asia ex-Japan index slumped 2.4% on Monday, its worst day since June last year, Chinese stocks had their worst day this year (blame Beijing-Washington tensions too) and Hong Kong tech stocks fell 3.6%.
China fx reserves rise $11 bln to $3.128 trillion in December
  + stars: | 2023-01-07 | by ( ) www.reuters.com   time to read: 1 min
BEIJING, Jan 7 (Reuters) - China's foreign exchange reserves rose in December, official data showed on Saturday, as the dollar fell against other major currencies. The country's foreign exchange reserves - the world's largest - rose $11 billion to $3.128 trillion last month, compared with $3.154 trillion predicted by a Reuters poll of analysts and $3.117 trillion in November. The yuan rose 2.8% against the dollar in December, while the dollar last month fell 2.3% against a basket of other major currencies . China held 64.64 million fine troy ounces of gold at the end of December, down from end-November. The value of China's gold reserves rose to $117.24 billion at the end of December from $111.65 billion at end-November.
"The FX regulator asked (us) about our market views and our positioning," said one of the sources. Two of the sources said the State Administration of Foreign Exchange (SAFE) made it clear the survey was urgent. "Foreign exchange reserves are at a critical level, and some market participants are betting that the authorities will eventually intervene." China's foreign exchange reserves now stand at just above the closely watched $3 trillion level. "China is likely to protect the reserves this time round as the Congress emphasizes that foreign exchange reserves are an indicator of comprehensive national strength," said ANZ's Xing.
"The FX regulator asked (us) about our market views and our positioning," said one of the sources. Two of the sources said the State Administration of Foreign Exchange (SAFE) made it clear the survey was urgent. "Foreign exchange reserves are at a critical level, and some market participants are betting that the authorities will eventually intervene." China's foreign exchange reserves now stand at just above the closely watched $3 trillion level. "China is likely to protect the reserves this time round as the Congress emphasizes that foreign exchange reserves are an indicator of comprehensive national strength," said ANZ's Xing.
REUTERS/Florence Lo/IllustrationSHANGHAI, Sept 27 (Reuters) - Chinese monetary authorities are asking local banks to revive a yuan fixing tool it abandoned two years ago as they seek to steer and defend the rapidly weakening currency, a source said on Tuesday. The source, who is familiar with the yuan rate-setting process, said monetary authorities were prodding banks to include the so-called counter-cyclical factor in their daily fixings for the tightly-managed exchange rate. It's an adjustment that 14 banks make to their yuan quotes that the People's Bank of China (PBOC) uses to set the daily reference rate, effectively introducing a bias to the fixing rate. It was abandoned in 2020 when the yuan rose sharply and authorities decided to let market forces dictate the rate around which the yuan is allowed to move. The move aims to restore and strengthen the two-way floating nature of the yuan, said the source.
SHANGHAI, Sept 27 (Reuters) - Chinese monetary authorities are asking local banks to revive a yuan fixing tool it abandoned two years ago as they seek to steer and defend the rapidly weakening currency, a source said on Tuesday. The source, who is familiar with the yuan rate-setting process, said monetary authorities were prodding banks to include the so-called counter-cyclical factor in their daily fixings for the tightly-managed exchange rate. It's an adjustment that 14 banks make to their yuan quotes that the People's Bank of China (PBOC) uses to set the daily reference rate, effectively introducing a bias to the fixing rate. It was abandoned in 2020 when the yuan rose sharply and authorities decided to let market forces dictate the rate around which the yuan is allowed to move. The move aims to restore and strengthen the two-way floating nature of the yuan, said the source.
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