Banking
New yuan rate ‘fixes distortions’
Chinese 100 yuan banknotes are seen in this picture illustration taken in Beijing in this July 11, 2013 file photo. [Photo/Agencies]Reference point for RMB exchange vs US dollar cut 1.86% by central bank China’s central bank devaluated the yuan against the US dollar by 1.86 percent on Tuesday, the largest single-day drop since exchange rate reforms began in January 1994. The People’s Bank of China cut the reference rate against the US dollar to 6.2298 yuan per dollar, down from 6.1162 yuan a day earlier, the lowest level in more than two years. In a move seen as a step toward liberalizing the yuan, the People’s Bank of China said that it will base the yuan-US dollar exchange rate more on the previous day’s closing rate at the interbank foreign exchange market. The move would correct price distortions from the bank’s previous interventions, experts said. However, the bank stressed that Tuesday’s depreciation was a “one-off” move to fix the discrepancy between the reference rate and the market’s spot rate.
Chinese 100 yuan banknotes are seen in this picture illustration taken in Beijing in this July 11, 2013 file photo. [Photo/Agencies]Reference point for RMB exchange vs US dollar cut 1.86% by central bank China’s central bank devaluated the yuan against the US dollar by 1.86 percent on Tuesday, the largest single-day drop since exchange rate reforms began in January 1994. The People’s Bank of China cut the reference rate against the US dollar to 6.2298 yuan per dollar, down from 6.1162 yuan a day earlier, the lowest level in more than two years. In a move seen as a step toward liberalizing the yuan, the People’s Bank of China said that it will base the yuan-US dollar exchange rate more on the previous day’s closing rate at the interbank foreign exchange market. The move would correct price distortions from the bank’s previous interventions, experts said. However, the bank stressed that Tuesday’s depreciation was a “one-off” move to fix the discrepancy between the reference rate and the market’s spot rate.
The rest is here:
New yuan rate ‘fixes distortions’
Banking
Bow to Beijing a low move by HSBC
HSBC has put money before morality to back China’s new security law: one that’s an assault on the freedoms of Hong Kong’s people.
Luckily for HSBC, it’s headquartered in Britain: a country where you can say what you like about Boris Johnson and his shambolic handling of the pandemic.
(more…)Banking
How China’s role in global finance has changed radically
Within the space of just 15 years, China has gone from being the largest net lender to the world to now being a net borrower. The implications for the global economy, and China’s role within that economy, could be significant.
‘If you owe the bank $1 million, you have a problem. But if you owe the bank $1 trillion, then the bank has a problem’. It’s an old gag, but it underscores an important point: the size of your borrowing or lending can have profound implications for your role in the world.
(more…)Banking
Could China’s financial repression be good for growth?
China’s financial reform and development over the past four decades could be described as strong in establishing financial institutions and growing financial assets, but weak in liberalising financial markets and improving corporate governance.
When China began economic reform in 1978, it had only one financial institution — the People’s Bank of China. As a centrally planned economy, the state arranged the transfer of funds and there was little demand for financial intermediation.
(more…)- China Unveils Plan to Upgrade Industrial Equipment
- China deepens engagement with new Indonesian president as top diplomat visits Jakarta
- New Publication: A Guide for Foreign Investors on Navigating China’s New Company Law
- Lingang New Area in Shanghai Opens First Cross-Border Data Service Center to Streamline Data Export Process
- A Concise Guide to the Verification Letter of Invitation Requirement in the China Visa Process
- Uyghurs remember 1990 Baren Uprising over China’s forced abortions
