Currency

In onshore markets, the yuan finished the domestic trading session at 7.2458 per dollar, its weakest such close since January 2008. Photo: AP
‘Gamble’ on yuan at your peril, Beijing warns, even as it slips to 14-year low

People’s Bank of China says in a rare warning that stabilising the foreign exchange market is a top priority after the onshore yuan closed on Wednesday at its weakest level against the US dollar since January 2008.

29 Sep 2022 - 12:26AM
China’s offshore yuan fell as far as 7.2349, the lowest level since such data became available in 2011. Photo: AP
China’s offshore yuan tumbles to lowest level since 2011

China’s offshore yuan fell as far as 7.2349 early on Wednesday, the lowest level since such data became available in 2011, despite fresh policy steps to bolster the currency this week.

28 Sep 2022 - 11:54AM
China is trying to pull in foreign investors who are increasingly finding it to be a less attractive place to put their money, despite abundant opportunities. 
Illustration: Lau Ka-kuen
‘Highly investible’ China woos foreigners but withholds what they want most

Geopolitical tensions, zero-Covid restrictions and political uncertainties serve to make the world’s second-largest economy less attractive, but China is pressing on with its charm offensive.

28 Sep 2022 - 11:04AM
Chinese economists tend to attribute depreciation pressure largely to the extraordinarily high US dollar index, which has hit a 20-year record of 113.9. Photo: Reuters
China ‘hits back at the yuan bears’, but new policy steps signal disquiet

China’s latest foreign exchange market intervention indicates greater determination to defend the yuan and prevent negative sentiment spreading across forex, stock and bond markets, analysts say.

26 Sep 2022 - 8:00PM
The US dollar is up 9.5 per cent on the yuan so far this year. Photo: Bloomberg
China walks a tightrope between more easing and a weakening yuan

Depreciation pressure on the yuan may constrain China’s ability to expand monetary policy in the second half of the year to shore up slowing economic growth, economists say.

8 Sep 2022 - 8:00PM
The yuan has been falling against the US dollar since April, losing 2.7 per cent over the past month alone. Photo: Shutterstock
Capital outflow risk grows as China’s yuan slides against US dollar

Analysts expect China’s yuan to fall further against the US dollar, which could accelerate capital outflows without benefiting exports significantly.

7 Sep 2022 - 11:38AM
Beijing has high hopes for the e-CNY, which has been piloted across the country and been used by tens of millions of Chinese. Photo: Shutterstock Images
China’s e-CNY offers chance to ‘reshape’ global payments, experts say

China should take a lead role in creating international rules for digital currencies, which will increase global settlements using the yuan and loosen US dollar dominance, experts say.

5 Sep 2022 - 9:30PM
China’s yuan has reached a more-than-two-year low against the US dollar. Photo: Reuters
China cuts banks’ forex reserve ratio as yuan hits 2-year low against US dollar

People’s Bank of China warns the market not to bet against the yuan, as it gets closer to the psychologically significant point of 7 per US dollar and market watchers speculate.

6 Sep 2022 - 9:30AM
The yuan’s depreciation is mild compared to other major currencies in the Asia-Pacific. Photo: Reuters
Why China’s weak yuan may not give it an export edge

The yuan breached 6.9 per US dollar for the first since August 2020 on Monday, but other Asian currencies have shown a sharper decline, ramping up risks for the region, analysts say.

31 Aug 2022 - 6:00AM
China has pioneered development of the central bank digital currency and has trialled its digital yuan across the country. Photo: Kyodo
China dismisses ‘false’ privacy fears amid calls for wider use of e-CNY

Mu Changchun, head of the central bank’s digital currency research institute, says any scrutiny of digital yuan transactions will be ‘strictly in line with laws and regulations’.

25 Jul 2022 - 7:30PM
After the European Central Bank’s interest rate hike on Thursday, China has become the only major economy maintaining a loose monetary stance. Photo: Reuters
EU, US central bank interest rate hikes ramp up pressure on China’s economy

China is now the only major economy maintaining a loose monetary stance, as soaring inflation forces the European institute to push up its benchmark rate for the first time in more than a decade.

22 Jul 2022 - 8:00PM
Cross-border yuan settlement could get a boost through the recently launched RCEP trade deal. Photo: Shutterstock
Hong Kong can play ‘super connector’ role for international use of the yuan

Under the Regional Comprehensive Economic Partnership, Hong Kong can play a crucial role for yuan-related financial activities and boost the currency’s international use in the process, a top banker says.

19 Jul 2022 - 9:12AM
China is setting up a yuan liquidity reserve pool with the Bank for International Settlements. Photo: AP
China’s yuan reserve pool reflects threat from US ‘weaponisation of finance’

China’s plan to establish a yuan liquidity reserve pool with the Bank for International Settlements (BIS) could help boost international use of the currency, while highlighting attempts to loosen US dollar hegemony.

28 Jun 2022 - 1:18PM
Regulators led by the People’s Bank of China (PBOC) have told some banks to prepare for an extension of onshore yuan trading hours, according to people familiar with the matter. Photo: Bloomberg
China to extend yuan trading hours as part of internationalisation push

Regulators led by the People’s Bank of China have told some banks to prepare for an extension of onshore yuan trading hours, according to sources, a move analysts say will help meet increasing demand for yuan transactions.

27 Jun 2022 - 7:17PM
Some 261 million digital yuan had been opened by the end of last year, with total transactions reaching 87.6 billion yuan (US$13.1 billion). Photo: Xinhua
China e-CNY makes strides, but ‘a way to go’ to challenge US dollar hegemony

China’s digital currency has been piloted in cities across the country and used by tens of millions of Chinese. But analysts say its adoption overseas will ultimately depend on trust in the country’s institutions and markets.

9 Jun 2022 - 5:53PM
China’s foreign exchange reserves – the world’s largest – rose to US$3.13 trillion last month from US$3.12 trillion in April. Photo: Reuters
China touts strong economic fundamentals as forex reserves rise in May

China’s foreign exchange reserves – the world’s largest – rose to US$3.13 trillion last month from US$3.12 trillion in April, the first increase this year, despite a ‘complex and severe’ external environment, regulators say.

7 Jul 2022 - 7:07PM
Chinese regulators say the yuan has been relatively stable compared to other major currencies when measured against the US dollar. Photo: AP
After months of volatility, is the worst over for China’s yuan?

China’s central bank says the yuan exchange rate is ‘basically stable’ and the economy is better positioned to deal with currency volatility and cross-border capital flows than at the start of the year.

2 Jun 2022 - 11:46PM
China is increasingly looking to diversify its foreign exchange assets to reduce exposure to the US dollar. Illustration: Lau Ka-kuen
China’s push to loosen US dollar dominance takes on new urgency

Western sanctions on Russia over its invasion of Ukraine have renewed debate in China about overhauling the exchange rate regime and loosening dependence on the US dollar.

24 May 2022 - 9:26AM