Exchange Rate

What exchange rate policy?

The yuan's exchange rate is far from being the result of a carefully considered policy.

Analysts have built entire careers analysing and re-analysing the mainland and its economy. They make predictions, get proven wrong and move on to the next topic.

Tuesday, 11 March, 2014, 5:09am 5 comments

Yuan's drop a mixed blessing for Chinese exporters

Zhou Xiaochuan says the recent volatility in the yuan was normal.

While the recent drop in the value of the yuan might seem good news for mainland exporters, few welcomed it.

More volatility is expected to come, as Beijing gives the currency more latitude to fluctuate.

6 Mar 2014 - 1:02am

Britain urged to probe currency rate rigging

Pressure is growing in London for officials to undertake tighter oversight of the foreign exchange market. Photo: Bloomberg

Britain should investigate the manipulation of currency rates, European Union officials said, after Bloomberg reported that traders have been rigging foreign exchange benchmarks for more than a decade.

14 Jun 2013 - 3:49am

Why plunging yen is bad news for Japan Inc's health

Kazuo Hirai. Photo: Bloomberg

The smile on Kazuo Hirai's face shows why the yen's drop below 100 to the US dollar is as much a curse for Japan as a blessing. Sony's 43 billion yen (HK$3.26 billion) profit for the fiscal year ended March 31 largely grew out of one thing: the yen's more than 20 per cent plunge against the US dollar since November.

17 May 2013 - 4:06am

Big rally in Asian currencies signals 'sell'

South Korean won's 4.6 per cent rise outpaced all currencies in the period from September 2011 to January 2013. Photo: Bloomberg

The biggest rally in Asian currencies since September is a sell signal to two of the world's largest foreign-exchange trading firms, as the region's economic growth increasingly falls short of forecasts.

9 May 2013 - 4:39am

Widening the yuan's trading band won't solve anything

Widening the yuan's trading band won't solve anything

The latest in a series of recent highs, yesterday's gain prompted fresh market speculation that the authorities in Beijing are preparing to widen the yuan's permitted trading band, a move widely regarded as the logical next step towards currency liberalisation.

3 May 2013 - 4:22am

'Made in America' means added pain for Hong Kong

'Made in America' means added pain for Hong Kong

For the past 10 years, Hong Kong's economy has been boosted by twin external superchargers. Now, both are in danger of breaking down.

2 May 2013 - 3:47am 13 comments

Scottish independence gets boost from Hong Kong's money markets

A currency rate board displays an exchange rate for the Scottish pound (SCP) at the Sheraton Hotel in Tsim Sha Tsui. Photo: Edward Wong

In a week that has seen Britain discuss the very future of the pound sterling and the possible break-up of the United Kingdom, Hong Kong's money changers have provided an unwitting boost to the Scottish independence movement by offering a separate - and more favourable - rate for Scottish pound notes.

28 Apr 2013 - 5:50am

Yuan's rise traps authorities between rock and hard place

The yuan climbed to a record post-revaluation high against the US dollar yesterday. After its recent gains, the Chinese currency has now appreciated by 1 per cent against the US dollar so far this year.

26 Apr 2013 - 4:13am

London home prices rise as weak pound fuels foreign buying interest

Asking prices in London have surged over £41,000 in the past year, led by a 6.2 per cent rise in Kensington and Chelsea. Photo: Bloomberg

London home sellers raised asking prices this month as the weakness of the pound fuelled interest from overseas buyers during the spring selling season, according to Rightmove, a property-website operator.

20 Mar 2013 - 5:22am

Danger signs for the global economy

Japanese Prime Minister Shinzo Abe. Photo: Xinhua

While people fret about a potential shooting war between three of the world's largest economies in the East China Sea, the real danger may be a currency war in which all three countries will be key players.

25 Feb 2013 - 2:52am

China's yuan outs yen as Asia's currency of choice

Yuan dethrones yen on  rise of China. Photo: Bloomberg

Asian central banks are tolerating gains in their currencies against the yen as China's economic recovery diminishes concern that stronger exchange rates may dampen their export advantages.

29 Dec 2012 - 4:58am

China plans greater yuan flexibility

The yuan has appreciated 1 per cent this year and touched a 19-year high of 6.2223 per US dollar on November 27. Photo: Xinhua

China will increase the movement of the yuan's exchange rate "appropriately" to handle the latest rounds of quantitative easing by the world's central banks, Xinhua said in an editorial.

8 May 2015 - 9:46am

Vying for a spot in the new monetary order

The world might drift towards a multiple reserve-currency system shared among the dollar, the euro and - sometime in the future - the renminbi. Photo: AFP

The international monetary system needs some serious rethinking. On paper, it has to guarantee the orderly functioning of exchange-rate regimes and transnational financial flows. Over the past few years, however, most currencies' exchange rates have fluctuated at an unprecedented pace, hampering commerce and capital transfers.

22 Nov 2012 - 3:18am

More convertible yuan next goal, China's central bank chief says

Zhou Xiaochuan

The People's Bank of China's next step in the overhaul of the exchange-rate system would focus on convertibility, governor Zhou Xiaochuan said yesterday, as his omission from a top Communist Party committee fuelled speculation he may retire.

8 May 2015 - 9:46am