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☆ Russia has been using the Chinese yuan to get around sweeping Western sanctions — but this side door may be closing
▼ + stars: | 2023-06-20 | by ( Huileng Tan | ) www.businessinsider.com time to read: +3 min

The bank made the move over fears of secondary sanctions from the West, per RBC. Russia has been using the Chinese yuan to get around Western sanctions. Russian clients can still make yuan transfers within the Bank of China network, Semyonov added to RBC. The Chinese yuan surpassed the US dollar as the most heavily traded currency in February and March, according to Bloomberg data. Semyonov told RBC that Russian yuan transfers to the US and EU make up just 3% of all transfers in the currency.

Persons: —, Russia's, Pavel Semyonov, Dmitry Lesnov, Semyonov, Finam Organizations: of, RBC, Service, The Bank of, European, Bank of China, EU, Novaya Gazeta, The, Swift, Bloomberg, Reuters Locations: of China, EU, Switzerland, Russia, The Bank of China, European Union, Modulbank, China, Novaya, Novaya Gazeta Europe, Ukraine

SHANGHAI/SINGAPORE, June 2 (Reuters) - China's yuan has skidded to six-month lows against the dollar and analysts say it could weaken further as investors fret over a bumpy pandemic recovery in the world's second-largest economy. "The yuan suffers as China's reopening story is less appealing than before, and there is no sign of further stimulus," said Gary Ng, senior economist for Asia Pacific at Natixis. "A weaker currency at the current juncture can help export performance, especially as global trade is shrinking this year." "A weaker yuan helps exporters when they convert the dollar receivables to yuan," said Barclays' FX strategist Lemon Zhang. A weaker yuan might also temper deflationary pressures being seen in parts of the economy due to weak domestic demand.

Persons: Gary Ng, Alvin Tan, Tan, Tommy Wu, Lemon Zhang, Serena Zhou, Winni Zhou, Brenda Goh, Tom Westbrook, Kim Coghill Organizations: Asia Pacific, Reuters, People's Bank of China, Asia FX, RBC Capital Markets, Barclays, FX, Mizuho Securities, Thomson Locations: SHANGHAI, SINGAPORE, United States, Natixis, Asia, China, Shanghai, Singapore

☆ 5 ways Russia's been sidestepping Western sanctions and keeping its economy alive, from switching to the Chinese yuan and dabbling in ghost trades
▼ + stars: | 2023-05-11 | by ( Huileng Tan | ) www.businessinsider.com time to read: +7 min

A fleet of aging oil tankers that do not turn on their tracking signals is suspected of secretly transporting sanctioned Russian oil globally. Russia has also put together a "shadow fleet" of more than 100 oil tankers to skirt the sanctions, the FT reported in December. By August, such gray market sales reached nearly $6.5 billion, said Denis Manturov, the Russian trade and industry minister, according to an Interfax report. Russian oil is still getting into Western countries, thanks to intermediaries. Western nations that banned Russian oil have collectively imported nearly $46 billion worth of Russian oil products, according to a study by the Centre for Research on Energy and Clean Air, or CREA, published in April.

☆ Pakistan will do anything to get cheap oil as its economic crisis drags on — including paying for it in the Chinese yuan
▼ + stars: | 2023-05-10 | by ( Huileng Tan | ) www.businessinsider.com time to read: +3 min

An energy official signaled the country could use the CNY to pay for Russian crude oil, per a report. Pakistan, a country mired in an economic and political crisis, has become the latest to signal using the Chinese currency to make cross-border payments for Russian oil. "Pakistan will pay the price of crude most probably in China's currency — yuan," an unnamed Pakistan energy ministry official told the media outlet. Pakistan's purchase of Russian oil comes also amid sweeping sanctions against Moscow over its invasion of Ukraine. Russia's flagship Urals crude is trading at around a $20 per barrel discount to benchmark US and Brent crude oil currently.

☆ China makes major push in its ambitious digital yuan project
▼ + stars: | 2023-04-24 | by ( Laura He | ) edition.cnn.com time to read: +4 min

Like cryptocurrency, the digital yuan incorporates some elements of blockchain technology: Every transaction is recorded and traceable in a digital ledger. Since last October, Changshu has been paying the transit subsidies for some government employees in digital yuan. It has also asked privately-owned apps to actively promote the digital yuan. Alipay began trialing digital yuan payments in 2021, and Tencent (TCEHY) announced last year that it would also start supporting the digital yuan in its WeChat Pay wallet. After all, industry leaders Alipay and WeChat Pay already have hundreds of millions of users who are familiar with their services.

☆ Chinese digital currency stocks surge amid new efforts to promote e-CNY
▼ + stars: | 2023-04-24 | by ( ) www.reuters.com time to read: +2 min

SHANGHAI/SINGAPORE, April 24 (Reuters) - Chinese digital currency-related stocks jumped on Monday in a weak broader market, amid the latest measures that China is taking to promote the use of its own central bank digital currency (CBDC), the digital yuan. "The development marks the latest trial China is doing to promote its e-CNY," said Dan Wang, chief economist at Hang Seng Bank China, referring to the digital yuan. Shares in Global Infotech Co (300465.SZ) soared 13% by midday, Chutian Dragon Co (003040.SZ) surged 8%, while Newland Digital Technology Co (000997.SZ) and Northking Information Technology Co (002987.SZ) also rose. However, the three people all said they don't find adequate scenarios to spend the digital yuan in their daily life. "I don't know how to use it, to be honest, no merchant around me receives digital yuan," Yang told Reuters, only giving her surname as she is not authorised to speak to the media.

☆ China keeps lending benchmarks unchanged amid signs of recovery
▼ + stars: | 2023-04-20 | by ( ) www.reuters.com time to read: +2 min

SHANGHAI/SINGAPORE, April 20 (Reuters) - China kept its benchmark lending rates unchanged for the eighth straight month on Thursday in line with expectations, as the economic recovery reduced the need for any immediate monetary support. The one-year loan prime rate (LPR) was kept at 3.65%, while the five-year LPR was unchanged at 4.30%. The medium-term lending facility (MLF) rate now serves as a guide to the LPR. Markets mostly use the medium-term policy rate as a indication of likely changes to the lending benchmarks. "There might be cuts to deposit rate and 5-year LPR, so as to lower funding costs and support long-term business loans."

☆ I plan parties for the ultrawealthy. We get multimillion-dollar budgets to source real reindeer, fire-breathing dragons, and gift bags filled with Dior jewelry.
▼ + stars: | 2022-12-20 | by ( Claire Turrell | ) www.businessinsider.com time to read: +9 min

But we're also asked to organize their holiday parties. We take our holiday parties to the next levelIt's not unusual for us to be given a multimillion-dollar budget to arrange a festive party. Our holiday parties take place all year roundAs we have offices across the globe, we organize holiday parties all year round. A private client event around Chinese New Year featuring a smoke-breathing dragon. Party guests could board the train and walk through the carriages.

☆ Morgan Stanley upgrades its 2023 growth outlook for China, expects stronger and earlier rebound
▼ + stars: | 2022-12-14 | by ( Jihye Lee | ) www.cnbc.com time to read: +4 min

Visual China Group | Getty ImagesMorgan Stanley raised its outlook for China's economy in 2023, predicting a rebound in activity will come earlier and be sharper than expected. China's government is also shifting to prioritizing economic growth, another pillar behind Morgan Stanley's revised forecast for the country's economic outlook. The onshore Chinese yuan stood at 6.9590 against the U.S. dollar on Wednesday morning – below the key 7.0 level against the greenback, which Morgan Stanley said makes it more attractive for exporters to buy more Chinese yuan with U.S. dollars. 'Number of risks'One of the risks that Morgan Stanley acknowledged is a potential withdrawal of policy support. Another area of uncertainty for Morgan Stanley's growth outlook is geopolitics.

☆ Factbox: Big banks see global economy slowing more in 2023, with likely U.S. recession
▼ + stars: | 2022-11-28 | by ( ) www.reuters.com time to read: +1 min

The U.S. Federal Reserve has increased interest rates by 375 basis points this year since rolling out its first hike in March. This has sparked worries about a recession, even as the central bank is expected to temper its pace of hikes. Barclays sees the rate between 4.25% and 4.50% by the end of next year, while Deutsche Bank sees it at 4.625% after a rate cut. UBS expects U.S. inflation to be "close enough" to the Fed's 2% target by the end of 2023 for the central bank to consider rate cuts. BofA sees the rate between 2.75% and 3.00% by the end of 2024.

☆ China's key money rate hits near 2-year low, but softening seen fleeting
▼ + stars: | 2022-11-22 | by ( ) www.reuters.com time to read: +3 min

SHANGHAI, Nov 22 (Reuters) - Liquidity conditions in China's interbank money markets eased further on Tuesday, as cash supply far outpaced demand, despite a huge withdrawal of funds by the central bank. Traders said declines in interbank rates were largely due to looser cash conditions after financial institutions cut leverage this month. While most other major economies are raising interest rates to tame inflation, Beijing is focusing more on propping up a slowing economy by keeping money rates low. And many market participants had taken advantage of the low repo rates to fund leveraged trades in bonds, traders said. However, markets are divided whether the falls in the money rates would be sustainable.

☆ Factbox: World banks see global economy slowing more in 2023, with likely U.S. recession
▼ + stars: | 2022-11-21 | by ( ) www.reuters.com time to read: +1 min

Nov 21 (Reuters) - The world's largest investment banks expect global economic growth to slow further in 2023 following a year roiled by a war and soaring inflation that triggered one of the fastest monetary policy tightening cycles in recent times. The U.S. Federal Reserve has increased interest rates by 375 basis points this year since rolling out its first hike in March. This has sparked worries about a recession, even as the central bank is expected to temper its pace of hikes. Barclays sees the rate between 4.25% and 4.5% by the end of next year, following a rate cut. UBS expects U.S. inflation to be "close enough" to the Fed's 2% target by the end of 2023 for the central bank to consider rate cuts.

☆ Dollar catches footing ahead of U.S. midterms
▼ + stars: | 2022-11-08 | by ( Tom Westbrook | ) www.reuters.com time to read: +3 min

[1/3] U.S. Dollar banknotes are seen in this illustration taken July 17, 2022. REUTERS/Dado Ruvic/IllustrationSINGAPORE, Nov 8 (Reuters) - The dollar steadied during Asia trade on Tuesday after some of the momentum ebbed out of bets on China's reopening, and as traders looked ahead to U.S. midterm elections. Some analysts say that outcome could be positive for bonds and negative for the dollar if it leads to less fiscal stimulus. Sterling , which surged on Monday, was 0.2% weaker at $1.1490, with focus there on fiscal update expected on Nov. 17. The Japanese yen hit a one-week high of 146.35 per dollar.

☆ China reopening hopes keep dollar on guard
▼ + stars: | 2022-11-08 | by ( Tom Westbrook | Tetsushi Kajimoto | ) www.reuters.com time to read: +3 min

[1/2] Banknotes of Chinese yuan and U.S. dollar are seen in this illustration picture taken September 29, 2022. It was firm at 7.2200 per dollar in offshore trade on Tuesday . The euro , linked via German exports to China's economy, regained parity on the dollar overnight and hovered at $1.0026. The New Zealand dollar climbed 0.2% to touch a seven-week high of $0.5951 in early Asia trade. But incremental adjustments have been enough to keep traders' hopes alive.

☆ China reopening hopes keep U.S. dollar on guard
▼ + stars: | 2022-11-08 | by ( ) www.cnbc.com time to read: +2 min

It was firm at 7.2200 per dollar in offshore trade on Tuesday. The euro , linked via German exports to China's economy, regained parity on the dollar overnight and hovered at $1.0026. The New Zealand dollar climbed 0.2% to touch a seven-week high of $0.5951 in early Asia trade. But incremental adjustments have been enough to keep traders' hopes alive. "This idea that maybe in 2023, we'll see a gradual reopening in China means that growth prospects in China should improve significantly, against a backdrop where most expect the U.S. economy to start slowing down."

[1/2] U.S. Dollar and Euro banknotes are seen in this illustration taken July 17, 2022. The Australian and Canadian central banks both raised rates by less than expected at their October meetings, and markets read a dovish tone in last week's European Central Bank 75 basis point hike. The euro barely reacted after data released on Monday that showed eurozone inflation came in hotter than expected at 10.7%, a fresh record high. Elsewhere, the Chinese yuan slumped after data released on Monday showed China's factory activity unexpectedly fell in October, weighed down by softening global demand and strict domestic COVID-19 curbs. The U.S. dollar climbed 2% on Brazil's Real after former president Luiz Inacio Lula da Silva narrowly defeated President Jair Bolsonaro in a run-off election.

[1/2] U.S. Dollar and Euro banknotes are seen in this illustration taken July 17, 2022. However, late last week this narrative ran out of steam, and it continued to struggle on Monday. The Fed is expected to deliver another 75 basis point (bp) rate hike after the conclusion of the FOMC meeting on Wednesday. ECB governing council member Klaas Knot said on Sunday the central bank's next move in December is likely to be between 50 and 75 bps. The dollar was last 0.68% higher against the yuan traded offshore at 7.31.

☆ Dollar steadies as Fed looms; yen fragile
▼ + stars: | 2022-10-31 | by ( Rae Wee | ) www.reuters.com time to read: +4 min

The greenback moved broadly higher in Asia trade, particularly against the Japanese yen , rising more than 0.5% and pushing above the 148 yen level. Data on Friday showed that U.S. consumer spending rose more than expected in September, while underlying inflation pressures continued to bubble. The Fed is expected to deliver another 75 basis point (bp) rate hike after the conclusion of the FOMC meeting on Wednesday. Ahead of another central bank decision this week, the Australian dollar rose 0.1% to $0.6418. The offshore yuan was last down 0.4% at 7.2990 per dollar.

[1/2] People buy food at stalls promoting China's digital yuan, or e-CNY, during the 2022 China International Fair for Trade in Services (CIFTIS) in Beijing, China September 1, 2022. REUTERS/Tingshu WangHONG KONG/SHANGHAI, Oct 27 (Reuters) - China's digital yuan took the centre stage in the world's largest cross-border central bank digital currency (CBDC) trial to date, a report showed, pointing to how Beijing is speeding up yuan globalization efforts amid rising geopolitical tensions. China's digital currency, or e-CNY, was the most issued, and actively transacted token in the $22 million pilot that used CBDCs to settle cross-border trades, a Bank of International Settlement (BIS) report showed. The PBOC's participation in m-Bridge represents its ambition to eventually promote global, wholesale use of the e-CNY. But China's yuan internationalisation, digital or not, faces challenges amid a slowing economy ravaged by COVID flare-ups, and a property debt crisis.

☆ Yuan falls to lowest since 2008 global crisis, despite state bank support
▼ + stars: | 2022-10-21 | by ( ) www.reuters.com time to read: +2 min

SHANGHAI, Oct 21 (Reuters) - China's yuan fell on Friday to its weakest level against the dollar since the global financial crisis of 2008, despite attempts by major state-owned banks to stabilise the market. Sources told Reuters that state banks sold dollars in the onshore foreign exchange market to prevent the spot price from weakening past the 7.25 per dollar level. State banks usually trade on behalf of the central bank in China's foreign exchange market, but they can also trade for their own purposes or execute orders for corporate clients. Register now for FREE unlimited access to Reuters.com RegisterStill, the onshore yuan finished the domestic trading session down 0.46% on the day at 7.2494 per dollar, the weakest such close since Jan. 14, 2008. The offshore yuan , which trades more freely to reflect market expectations, was trading at 7.2721 per dollar around 0830 GMT.

☆ Hong Kong leader John Lee delivers his maiden policy address
▼ + stars: | 2022-10-19 | by ( ) www.reuters.com time to read: +5 min

HONG KONG, Oct 19 (Reuters) - Hong Kong's new leader John Lee delivered his maiden policy address annual policy address on Wednesday, mapping out his priorities for the former British colony which returned to Chinese rule in 1997. - To set aside HK$30 billion from the Future Fund to establish the Co-Investment Fund for attracting enterprises to set up operations in Hong Kong and investing in their business. ECONOMY- To set up a new Hong Kong Investment Corporation Limited (HKIC) to further optimise the use of fiscal reserves for promoting the development of industries and the economy, and to attract and support more enterprises to develop their business in Hong Kong. - To develop Hong Kong into an international carbon market. - The Hong Kong Monetary Authority (HKMA) has begun the preparatory work for issuing "e-HKD" (e-Hong Kong dollar) and is collaborating with the Mainland institutions to expand the testing of "e-CNY" (e-Chinese yuan) as a cross-boundary payment facility in Hong Kong.

☆ China's digital currency passes 100 bln yuan in spending - PBOC
▼ + stars: | 2022-10-13 | by ( ) www.reuters.com time to read: +2 min

SHANGHAI, Oct 13 (Reuters) - Transactions using China's digital yuan surpassed 100 billion yuan ($13.9 billion) as of Aug. 31, China's central bank said on Wednesday, as the country continues its roll-out of a central bank digital currency. The spending involved 360 million transactions in pilot areas in 15 provinces and municipalities, the People's Bank of China (PBOC) said, adding that more than 5.6 million merchants could now accept payments with the digital currency. China is at the fore of a global race to develop central bank digital currencies, although adoption is still in the early stages. Transactions using e-CNY rose from 87.6 billion yuan by the end of 2021, the PBOC said. The central bank also took part in the cross-border multiple Central Bank Digital Currency (mCBDC) Bridge trial developed by the Bank of International Settlements and conducted tests to connect with Hong Kong's local digital payment system, it said.

☆ China's yuan ends at 28-month low despite fresh policy step, nears daily lower limit
▼ + stars: | 2022-09-26 | by ( Reuters Staff | ) www.reuters.com time to read: +2 min

SHANGHAI (Reuters) -China’s yuan finished domestic trading session at a new 28-month low against the dollar on Monday, near its downside trading limit, despite the central bank taking steps to rein in the currency’s weakness. FILE PHOTO: Chinese yuan banknotes are seen in this illustration picture taken April 25, 2022. However, the midpoint continued to come in much stronger than market projections for the 23rd straight trading session, traders and analysts said. The official daily midpoint fixing limits the onshore yuan to trade in a narrow range of 2% above or below, and Monday’s guidance kept the range to between 6.8892 and 7.1704. The onshore yuan hit an intraday low of 7.1690, 14 pips away from the lower end of the trading band.

☆ China's yuan hits 28-month low despite fresh policy step, nears daily down-limit
▼ + stars: | 2022-09-26 | by ( ) www.reuters.com time to read: +3 min

It was changing hands at 7.1662 at midday, 364 pips weaker than the previous late session close. read moreBy midday, the global dollar index hovered around its two-decade high of 113.996 at midday, while the offshore yuan was trading at 7.1704 per dollar. The yuan market at 0401 GMT:ONSHORE SPOT:Key indexes:*Divergence of the dollar/yuan exchange rate. Negative number indicates that spot yuan is trading stronger than the midpoint. The People's Bank of China (PBOC) allows the exchange rate to rise or fall 2 percent from official midpoint rate it sets each morning.

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