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.

Yuan jumps to 6-month high against US dollar

The People's Bank of China raised the daily midpoint exchange rate for the yuan against the US dollar by 187 basis points to 6.152.

The yuan rose to a six-month high yesterday after its biggest single-day increase in the midpoint rate in four years following a record trade surplus for last month.

Wednesday, 10 September, 2014, 4:05am 7 comments

Yuan convertibility on back burner as Beijing focuses on other reforms

Timing on reforms is a key issue for officials, such as those in the People's Bank of China. Photo: Reuters

Beijing is quietly pushing back its loose timetable to make the yuan freely convertible, policy insiders say.

8 Aug 2014 - 8:31am

China’s Big Four lenders have 1.5tr yuan gap in deposits

An increase in artificial deposits in the second quarter in China pointed to strong demand for loans. Photo: Bloomberg

Tighter liquidity on the mainland may have driven a 1.5 trillion yuan gap in deposits at the country's Big Four banks between June and July, highlighting the lenders' practice of creating "artificial deposits" to skirt regulatory requirements.

6 Aug 2014 - 2:29am

France out to build on gains as yuan hub, consul general in Hong Kong says

Arnaud Barthelemy says that Paris, as a leading financial centre, is well placed to promote greater use of the yuan. Photo: Jonathan Wong

France wants to expand its yuan business on the back of a strong trade relationship with China, while its financial firms are keen to offer yuan investment products, French consul general Arnaud Barthelemy said.

31 Jul 2014 - 6:38pm

Beijing to reduce intervention in yuan when time is right, PBOC chief says

'We hope to let the exchange rate stay at an equilibrium and reasonable level,' said PBOC governor Zhou Xiaochuan. Photo: AP

China will increase the flexibility of the yuan exchange rate and reduce intervention when conditions are ready, its central bank chief said yesterday.

11 Jul 2014 - 12:47am

Delayed payments system stalls yuan’s global ambitions

The new global yuan payments system may eliminate the need for yuan clearing banks. Photo: Reuters

China's quest to turn the yuan into a full-fledged global currency has hit a roadblock, as the planned roll-out of a worldwide payments superhighway looks certain to be delayed by policy snags and technology challenges.

10 Jul 2014 - 11:43pm

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.

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