• Thu
  • Dec 25, 2014
  • Updated: 9:03am


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.

Bank of China plans to launch yuan bonds in Luxembourg

BOC has sold yuan bonds in London and Singapore. Photo: Reuters

Bank of China has returned to the market to raise funds and is marketing its first euro-zone-listed, yuan-denominated bond to be traded in Luxembourg.

Friday, 9 May, 2014, 12:20am

Is the market reform a true 'win-win' for Shanghai and Hong Kong?

The scheme may be more about the relationship between the yuan as the mainland's official currency and the Hong Kong dollar.

On the mainland, the term "win-win" has been popular for quite some time, replacing the term "zero-sum" game we often heard during the Cold War era.

14 Apr 2014 - 7:51am 1 comment

Yuan decades away from being global reserve currency

To boost the yuan's standing still requires "lots of homework", says People's Bank of China governor Zhou Xiaochuan. Photo: Bloomberg

Despite the significant progress Beijing has made in broadening global use of the yuan, observers say the mainland currency has more often been chased by speculators than serving as a US dollar-type "safe haven".

12 Apr 2014 - 1:42am 11 comments

Central banks' investment in yuan puts currency nearer reserve status

Twenty-three countries have publicly declared their holdings in yuan.

At least 40 central banks have invested in the yuan and several others are preparing to do so, putting the mainland currency on the path to reserve status even before full convertibility, Standard Chartered said.

17 Apr 2014 - 3:11pm

Does the yuan matter?

There's too much fuss about the yuan, when other economic reforms are more urgent.

The mainland's currency policy is not worth the attention it is getting. It is not at all important compared with other market distortions in the Chinese economy, and it is not even very important in how China affects the world economy.

25 Mar 2014 - 2:13am 6 comments

Yuan still rising based on real effective exchange rate, ministry says

On Monday, the People's Bank of China doubled the yuan's daily trading band, allowing the exchange rate to rise or fall by up to 2 per cent from a daily midpoint.

Despite the yuan's depreciation against the US dollar in recent weeks, its real effective exchange rate - more closely linked to the trade situation - remained on the rise, Commerce Ministry spokesman Shen Danyang said.

19 Mar 2014 - 5:10am 1 comment

Shanghai official's vow on imminent freeing up of yuan a bone of contention

Liberalising the capital account would be the last step to officially making the currency fully convertible, but it is unlikely to happen soon. Photo: Reuters

When will China fully liberalise the red-hot yuan? Even the central bank of the world’s second-biggest economy may not really have a clue, with senior officials locked in a debate over when foreign exchange controls should be lifted.

19 Mar 2014 - 5:19pm 9 comments

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.

11 Mar 2014 - 5:09am 5 comments

Investors warned of more fluctuations in yuan

The mainland's foreign exchange chief says the yuan's current price moves of about 1 per cent are not large. Photo: Bloomberg

The mainland's foreign exchange chief has warned investors to expect more fluctuations in the value of the yuan as the currency moves towards a more market-based trading system and said current price moves were not large.

4 Mar 2014 - 6:53am

The yuan is falling, but only because Beijing wants it to

The yuan is falling, but only because Beijing wants it to

It is hard to fathom quite why so many people have been surprised by the recent fall in the value of the yuan. Over the past couple of weeks, the mainland currency has fallen 1.3 per cent against the US dollar.

3 Mar 2014 - 7:15am 1 comment

Fall in yuan can have upside, too as credit risk can be properly priced

The yuan policy over most of the last decade has reached its use-by date. Photo: Bloomberg

Beijing has served notice that speculation in the Chinese currency is no longer a one-way bet. The market is coming to terms with the fact that a sharp depreciation of the yuan in recent days, including the biggest intra-day fall since 2007 yesterday, is policy-driven ahead of an anticipated widening of the unit's daily trading range.

1 Mar 2014 - 5:55am

BOC Hong Kong fends off new competition in yuan trading

The Bank of China is recruiting more participating banks to boost its yuan business. Photo: Sam Tsang

Bank of China (Hong Kong), which is 66.06 per cent owned by Bank of China, is considering extending its operating hours to cater to demand from overseas customers, especially from the United States.

17 Feb 2014 - 5:43am

Canada steps up push to create yuan trading hub

Jim Flaherty

Canadian Finance Minister Jim Flaherty received a personal briefing on the matter last year from government officials before a meeting with HSBC executives, documents obtained under Canada's Access to Information Act showed.

8 Feb 2014 - 5:12am

Yuan overtakes euro to become second-most used finance currency

Yuan usage in trade finance grew to 8.66 per cent in October from 1.89 per cent in January last year.

Yuan usage in trade finance grew to 8.66 per cent in October from 1.89 per cent in January last year, according to the Society for Worldwide Interbank Financial Telecommunication (Swift).

4 Dec 2013 - 6:23am

Taiwan favoured centre for yuan bonds

Yuan deposits in Taiwan totalled 123.2 billion yuan in October. Photo: Reuters

More mainland firms, especially banks, are expected to pick Taiwan as their top destination for issuing offshore yuan bonds, with the island opening the door for the first time to mainland issuers last week.

2 Dec 2013 - 6:08am