Yuan

The Chinese yuan, also known as the renminbi, is already convertible under the current account - the broadest measure of trade in goods and services. However, the capital account, which covers portfolio investment and borrowing, is still closely managed by Beijing because of worries about abrupt capital flows.

What wider trading band when yuan is frozen?

Beijing is actively manipulating the yuan's exchange rate, possibly either to create the appearance of a stable financial system or in the hopes that freezing the exchange rate will itself help make this financial system stable. Photo: Reuters

China's decision to widen the yuan's trading band marks the government's latest effort to push ahead with market reforms to increase the yuan's chances of being included in the IMF's currency basket later this year despite the backdrop of a weakening economy.

Tuesday, 28 July, 2015, 9:12am

IMF tells Beijing it’s worried about investors’ mobility in mainland Chinese markets

US Treasury Secretary Jack Lew says the yuan is not yet "freely usable". Photo: AFP

The International Monetary Fund has told Beijing about its concerns over investors’ ability to enter or leave mainland financial markets as they wish, sources said.

Those worries were raised last month when the IMF met mainland officials in China to discuss the chances of including the yuan in the fund’s Special Drawing Rights (SDR) basket.

23 Jul 2015 - 12:17pm 1 comment

More currency reform expected from Beijing, 10 years after yuan peg removed

The People’s Bank of China freed the yuan from its 8.28 peg to the US dollar on July 21, 2005. Photo: Bloomberg

Bankers and traders expect Beijing will carry out more currency reforms to boost the international status of the yuan and further liberalise capital controls, 10 years after its landmark move to break the mainland currency’s peg to the US dollar.

22 Jul 2015 - 10:01am 1 comment

Yuan falls to four-month low offshore

The People’s Bank of China set the midpoint rate at 6.1175 per US dollar. Photo: Reuters

The yuan fell to four month-lows in the offshore market on Wednesday as a deepening stock market rout prompted investors to cut their long positions in the mainland currency.

8 Jul 2015 - 6:31pm

Sydney moves ahead with yuan trading, with People's Bank of China backing

Treasurer Joe Hockey says Zhou Xiaochuan is personally backing efforts to develop a yuan trading centre in Australia. Photo: Nora Tam

People's Bank of China governor Zhou Xiaochuan is personally backing efforts to develop a yuan trading centre in Australia, Treasurer Joe Hockey told the South China Morning Post on Tuesday.

6 Jul 2015 - 11:37am

Yuan weakens as dollar climbs on better GDP data

The People’s Bank of China set the midpoint price for the yuan exchange band at a stronger level of 6.1137 on Friday. Photo: Reuters

The Chinese yuan weakened against the US dollar for the third straight day on Friday as the greenback continued to rally on fresh data that showed the US economy fared beter than expected in the first quarter.

Onshore yuan lost 0.01 per cent to 6.2097 while the offshore yuan dropped 0.11 per cent, or 66 basis points, to 6.2106 as of 10.57am.

26 Jun 2015 - 11:39am

Yuan trade volumes in London more than double

London has been keen to attract Chinese banks and encourage offshore trade in the yuan to bolster its position as the world’s main centre for foreign exchange trading. Photo: Reuters

Chinese renminbi trade volumes in London more than doubled last year, according to figures from the City of London Corporation on Friday, in a further sign of deepening financial links between Britain and China.

26 Jun 2015 - 9:38am

Bearish bets on China’s yuan may misfire

Yuan short sellers working on the assumption that monetary policy easing is around the corner may need a change of plan. Photo: Reuters

Yuan short sellers working on the assumption that monetary policy easing is around the corner may need a change of plan as Beijing could once again prove those bearish bets are misplaced.

When money mangers started to leave yuan-denominated assets because of possible depreciation risks, they might have underestimated Beijing’s determination to globalise its currency.

9 Jul 2015 - 10:50am 1 comment

China’s yuan drop most in two weeks after PBOC injection; US presses for yuan appreciation

US Treasury Secretary Jack Lew gives a toast during bilateral talks with China as he urged Beijing to move to a market-determined currency policy. Photo: Reuters

The offshore yuan dropped the most in two weeks as China’s central bank injected cash through an open market operation for the first time in two months which helped ease a liquidity crunch on the mainland.

The offshore spot yuan weakened 0.11 per cent, or 69 basis points, to 6.2085 as of 11:56 am, while the onshore spot yuan lost 0.03 per cent, or 16 basis points, to trade at 6.2088.

25 Jun 2015 - 12:36pm

Yuan trades lower as US, Chinese officials discuss adding currency to IMF basket

The dollar and the yuan sit side-by-side as US and Chinese officials discuss inclusion of the yuan in the IMF basket of currencies. Photo: Reuters

The Chinese currency weakened on Wednesday after the nation’s central bank governor said the yuan exchange rate stands at “reasonable level” during the annual strategic dialogue between the US and China in Washington.

24 Jun 2015 - 12:19pm 1 comment

ADB calls for more flexible yuan as China’s growth tipped to slow

Chinese yuan notes and coins in the capital of Beijing. Photo: EPA

The Asian Development Bank urged Beijing to make the yuan more flexible while forecasting China’s economic growth would slow only moderately to 7.2 per cent this year thanks to lower oil prices, improved external demand, and domestic structural reforms.

24 Mar 2015 - 3:00pm

China International Payment System (CIPS) said ready; may be launched September or October

Chinese yuan are counted in a bank. An internatinal payment system is said ready for launch toward the end of 2015. Photo: Bloomberg

China’s long-awaited international payment system to process cross-border yuan transactions is ready, and may be launched as early as September or October, three sources with direct knowledge of the matter told Reuters.

9 Mar 2015 - 9:26pm

Capital flight in mainland China could spark currency collateral damage

Real rates on the mainland have drifted higher, due in large part to low and falling inflation. Photo: Bloomberg

The tide of capital is going out in China and many boats, in Chinese ports or not, will settle lower in the water in consequence.

The mainland, somewhat unexpectedly, cut monetary policy yet again over the weekend, the third time in recent months it has moved to ease conditions.

4 Mar 2015 - 11:07pm

Taiwan now hottest place to raise renminbi for international issuers

Renminbi deposits in Taiwan totalled more than 310 billion yuan as of January. Photo: Reuters

Taiwan has become the hottest place for international issuers to raise renminbi this year, while yuan bond issuances in Hong Kong has slumped as costs hover at a record high.

3 Mar 2015 - 2:54pm

Beijing's 'new normal' currency policy does not imply a weaker yuan

The yuan's mild appreciation trend should remain intact in the medium term, supported by an external surplus. Photo: Bloomberg

The People's Bank of China has been intervening less in the foreign-exchange market since it moved to squash speculators making the so-called one-way bet trade on yuan appreciation early last year.

The currency has been in a "new normal" paradigm since, in which two-way trading and currency volatility have finally become a reality.

9 Feb 2015 - 8:56pm

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