https://www.scmp.com/rss/501700/feed en https://assets.i-scmp.com/static/img/icons/scmp-meta-1200x630.png https://www.scmp.com Karen Tian Karen Tian China’s central bank has set the yuan’s exchange rate at its strongest level against the US dollar in more than three years, as Beijing pushes to internationalise its currency and global confidence in US dollar assets continues to waver. The People’s Bank of China set the yuan’s midpoint rate at 6.8487 per US dollar on Thursday, the strongest level since April 2023. The fixing rate, used as a reference for daily market trading, was 6.8562 a day earlier. Analysts expect the Chinese currency to... https://www.scmp.com/economy/china-economy/article/3352735/chinas-exporters-face-test-yuan-hits-3-year-high-against-us-dollar?utm_source=rss_feed https://www.scmp.com/economy/china-economy/article/3352735/chinas-exporters-face-test-yuan-hits-3-year-high-against-us-dollar?utm_source=rss_feed Thu, 07 May 2026 08:22:07 +0000 Sylvia Ma Sylvia Ma Daniel Gros is the director of the Institute for European Policymaking at Bocconi University. Previously, he served as an adviser to the European Parliament, collaborated with the European Commission as economic adviser to the Delors Committee, which developed plans for the euro, and worked at the International Monetary Fund. In this interview, Gros examines the structural tensions shaping EU-China economic ties, draws lessons from the euro’s experience to analyse the yuan’s... https://www.scmp.com/economy/china-economy/article/3351329/daniel-gros-what-china-can-learn-euro-it-works-towards-global-yuan?utm_source=rss_feed https://www.scmp.com/economy/china-economy/article/3351329/daniel-gros-what-china-can-learn-euro-it-works-towards-global-yuan?utm_source=rss_feed Sun, 26 Apr 2026 22:00:14 +0000 Mark Magnier Mark Magnier China has crafted markets, mechanisms and incentives as the world’s largest buyer of commodities in a bid to free itself from its dependence on the US dollar, but the biggest threat to Washington’s global dollar dominance may well be Washington itself, witnesses said in testimony on Thursday before a key advisory committee to the US Congress. Economic sanctions and access to US-led global banking systems are a powerful US tool that can be used to great effect, said experts before the US-China... https://www.scmp.com/news/us/economy-trade-business/article/3350382/why-biggest-threat-us-global-dollar-dominance-may-well-be-washington-itself?utm_source=rss_feed https://www.scmp.com/news/us/economy-trade-business/article/3350382/why-biggest-threat-us-global-dollar-dominance-may-well-be-washington-itself?utm_source=rss_feed Thu, 16 Apr 2026 23:42:50 +0000 Sylvia Ma Sylvia Ma China continued to diversify its foreign exchange reserves in February, trimming its US Treasury stockpile even as overall overseas holdings of sovereign American debt rose to a record high. China’s stockpile of United States Treasuries fell to US$693.3 billion in February, down from US$694.4 billion in January, according to US Treasury Department data released on Wednesday. Although China slightly increased its US Treasury holdings in January, the uptick did little to alter a broader downward... https://www.scmp.com/economy/global-economy/article/3350275/china-trims-us-treasury-holdings-amid-rising-debt-supply-global-ownership-hits-record?utm_source=rss_feed https://www.scmp.com/economy/global-economy/article/3350275/china-trims-us-treasury-holdings-amid-rising-debt-supply-global-ownership-hits-record?utm_source=rss_feed Thu, 16 Apr 2026 07:00:13 +0000 Xinyi Wu Xinyi Wu Faltering confidence in the US dollar has handed China a “golden window of opportunity” to promote the global use of its currency, according to a former head of the Chinese central bank. “The core driving force behind the current changes in the international monetary system is the United States’ own policy choices,” Zhou Xiaochuan was quoted as saying in a report published on Sunday by the New Economist, a Chinese think tank. He cited the broad application of American tariffs, the frequent use... https://www.scmp.com/economy/global-economy/article/3349868/yuans-golden-window-open-former-pboc-governor-says-us-dollar-credibility-teeters?utm_source=rss_feed https://www.scmp.com/economy/global-economy/article/3349868/yuans-golden-window-open-former-pboc-governor-says-us-dollar-credibility-teeters?utm_source=rss_feed Mon, 13 Apr 2026 06:59:34 +0000 Sylvia Ma Sylvia Ma Mainstream metrics may understate the role of China’s currency in global payments, as a growing share of transactions is now routed through Beijing’s own cross-border payment system and not fully reflected in conventional data sets, analysts say. This could help explain the gap between Beijing’s official narrative – which describes the yuan as the world’s third-largest payment currency – and readings from tracking systems such as the Society for Worldwide Interbank Financial Telecommunication... https://www.scmp.com/economy/china-economy/article/3348907/chinas-yuan-may-be-going-global-faster-western-data-suggests-analysts-say?utm_source=rss_feed https://www.scmp.com/economy/china-economy/article/3348907/chinas-yuan-may-be-going-global-faster-western-data-suggests-analysts-say?utm_source=rss_feed Mon, 06 Apr 2026 15:00:07 +0000 Kandy Wong Kandy Wong Professor Kenneth Rogoff of Harvard University has repeatedly warned that the US dollar is approaching a crisis of legitimacy. Having written extensively on the global recession in the late 2000s, Rogoff has turned his focus to the US currency’s increasingly unstable place at the top of the world’s financial hierarchy. A former chief economist at the International Monetary Fund and a chess grandmaster, he published Our Dollar, Your Problem in May last year. In this interview, Rogoff elaborates... https://www.scmp.com/plus/news/china/money-wealth/article/3347930/euro-chinese-yuan-end-us-dollar-dominance-top-economist-says?utm_source=rss_feed https://www.scmp.com/plus/news/china/money-wealth/article/3347930/euro-chinese-yuan-end-us-dollar-dominance-top-economist-says?utm_source=rss_feed Thu, 26 Mar 2026 02:31:08 +0000 Xinyi Wu Xinyi Wu Beijing has stressed that it does not intend to rely on a weaker yuan for trade gains, amid a recent rally in the currency and mounting pressure from trade partners to allow it to strengthen. “China has neither the need nor the intention to gain competitive advantages in trade through currency depreciation,” said Pan Gongsheng, governor of the central bank, at a press conference of the country’s top economic officials on Friday. The comments came ahead of a new round of trade talks between China... https://www.scmp.com/economy/china-economy/article/3345755/china-fires-back-currency-depreciation-claims-denies-using-weak-yuan-boost-exports?utm_source=rss_feed https://www.scmp.com/economy/china-economy/article/3345755/china-fires-back-currency-depreciation-claims-denies-using-weak-yuan-boost-exports?utm_source=rss_feed Fri, 06 Mar 2026 12:00:09 +0000 Xinyi Wu Xinyi Wu China’s sovereign debt is emerging as a strategic alternative to US Treasuries as global investors look for geopolitical hedges, though greater market liquidity and deeper yuan internationalisation are still needed to cement its status as a global safe haven, an economist at a Chinese government think tank has said. “[These bonds] circumvent the restrictions of the non-convertibility of the renminbi,” said Xu Qiyuan, deputy director of the American Studies Institute at the Chinese Academy of... https://www.scmp.com/economy/china-economy/article/3345378/chinas-sovereign-debt-becoming-strategic-alternative-us-treasuries-economist?utm_source=rss_feed https://www.scmp.com/economy/china-economy/article/3345378/chinas-sovereign-debt-becoming-strategic-alternative-us-treasuries-economist?utm_source=rss_feed Wed, 04 Mar 2026 08:00:09 +0000 Sylvia Ma Sylvia Ma With China’s currency having steadily strengthened in recent months, the central bank has rolled out a pair of measures to lower foreign exchange hedging costs and support cross-border yuan financing. In a notice on Thursday, the People’s Bank of China refined the framework for domestic banks to conduct cross-border yuan interbank financing, explicitly endorsing their role in providing stable yuan liquidity to offshore markets through regulated channels. The move comes as Beijing has been... https://www.scmp.com/economy/china-economy/article/3344894/yuan-sizzles-chinas-central-bank-deploys-double-barrelled-policy-tweak?utm_source=rss_feed https://www.scmp.com/economy/china-economy/article/3344894/yuan-sizzles-chinas-central-bank-deploys-double-barrelled-policy-tweak?utm_source=rss_feed Fri, 27 Feb 2026 10:36:47 +0000 Sylvia Ma Sylvia Ma China should leverage bilateral and multilateral deals to accelerate the adoption of its cross-border payment system, a prominent political adviser has urged, as concerns deepen over the potential for intensified “financial weaponisation” in a global payment system centred around the US dollar. “Given escalating geopolitical conflicts, frequent financial sanctions and a growing trend of financial weaponisation, the risk of ‘payment chain disruptions’ caused by excessive reliance on external... https://www.scmp.com/economy/china-economy/article/3344727/whats-next-chinas-yuan-payment-system-adviser-banks-close-trade-partners?utm_source=rss_feed https://www.scmp.com/economy/china-economy/article/3344727/whats-next-chinas-yuan-payment-system-adviser-banks-close-trade-partners?utm_source=rss_feed Thu, 26 Feb 2026 12:00:09 +0000 Jevans Nyabiage Jevans Nyabiage Beijing’s push to internationalise the yuan is gaining a new vehicle in Africa as another major multilateral lender is set to diversify towards the Chinese currency to slash borrowing costs and reduce the risks of dollar volatility. Multilateral lender Africa Finance Corporation (AFC) has confirmed that a debut panda bond issuance is “on the table for this year”, as it looks to deepen its ties with Chinese capital markets following last year’s successful triple-A Chinese rating. Banji Fehintola,... https://www.scmp.com/news/china/diplomacy/article/3343347/africas-yuan-pivot-why-more-top-lenders-are-eyeing-chinas-bond-market?utm_source=rss_feed https://www.scmp.com/news/china/diplomacy/article/3343347/africas-yuan-pivot-why-more-top-lenders-are-eyeing-chinas-bond-market?utm_source=rss_feed Fri, 13 Feb 2026 04:00:14 +0000 Sylvia Ma Sylvia Ma China’s central bank set the yuan’s daily fixing rate at its strongest level since mid-2023 on Wednesday, as the Chinese currency extended gains with investors increasingly rotating out of US dollar assets amid concerns over the Federal Reserve’s independence and US debt sustainability. The People’s Bank of China set the yuan’s midpoint rate – also known as the daily fixing rate – at 6.9438 to the US dollar, which marked the strongest level in 33 months. The move followed months of steady... https://www.scmp.com/economy/china-economy/article/3343174/china-lets-yuan-rise-strongest-level-years-de-dollarisation-trend-grows?utm_source=rss_feed https://www.scmp.com/economy/china-economy/article/3343174/china-lets-yuan-rise-strongest-level-years-de-dollarisation-trend-grows?utm_source=rss_feed Wed, 11 Feb 2026 08:11:12 +0000 Matteo Giovannini Matteo Giovannini As China prepares its digital yuan for wider domestic and cross-border use, the global debate has turned again to a familiar question: is Beijing trying to challenge the US dollar’s dominance? But this misses the more consequential point. The significance of China’s digital currency push lies not in substitution, but in the transformation of the infrastructure that underpins international payments. Over the past few years, the e-CNY has evolved into one of the world’s most advanced central bank... https://www.scmp.com/opinion/china-opinion/article/3341064/talk-digital-yuan-challenging-dollar-dominance-misses-real-power-shift?utm_source=rss_feed https://www.scmp.com/opinion/china-opinion/article/3341064/talk-digital-yuan-challenging-dollar-dominance-misses-real-power-shift?utm_source=rss_feed Sun, 25 Jan 2026 21:30:08 +0000 Sylvia Ma Sylvia Ma China should leverage its massive buying power to boost imports settled in yuan and shift towards a more balanced trade structure, to accelerate the currency’s global use, according to a former central bank adviser. The proposal signals a potential opportunity for the yuan’s internationalisation, years after Beijing kicked off the process in 2009 by allowing selected exporters to be paid in the Chinese currency. “China is the world’s largest goods exporter, but the yuan’s international standing... https://www.scmp.com/economy/china-economy/article/3340653/china-should-leverage-buying-power-boost-yuans-use-trade-former-pboc-adviser?utm_source=rss_feed https://www.scmp.com/economy/china-economy/article/3340653/china-should-leverage-buying-power-boost-yuans-use-trade-former-pboc-adviser?utm_source=rss_feed Wed, 21 Jan 2026 05:36:24 +0000 Sylvia Ma Sylvia Ma China’s central bank strengthened the yuan’s daily fixing for a third consecutive session to a nearly 16-month high, as the currency also held firm in offshore markets despite recent US dollar strength. On Tuesday, the People’s Bank of China set the yuan’s midpoint rate, also known as the daily fixing rate, at 7.0103 to the US dollar – the strongest showing since the end of September 2024, when the rate was set at 7.0074. That official midpoint rate, however, was still weaker than that of the... https://www.scmp.com/economy/china-economy/article/3339699/chinas-central-bank-sets-onshore-yuan-fixing-strongest-point-nearly-16-months?utm_source=rss_feed https://www.scmp.com/economy/china-economy/article/3339699/chinas-central-bank-sets-onshore-yuan-fixing-strongest-point-nearly-16-months?utm_source=rss_feed Tue, 13 Jan 2026 06:00:15 +0000 Ji Siqi,Xiaofei Xu Ji Siqi,Xiaofei Xu In an effort to further promote the internationalisation of China’s currency, Beijing has pledged to expand the use of its digital yuan, including by establishing a cross-border payment pilot with Singapore. The measures, announced by the People’s Bank of China on Wednesday, are tied to a broader financial support plan for China’s New International Land-Sea Trade Corridor – a trade and logistics network, launched in 2017, that links landlocked cities in western China with hundreds of global... https://www.scmp.com/economy/global-economy/article/3337642/china-expands-digital-yuan-push-singapore-and-asean-trade-routes?utm_source=rss_feed https://www.scmp.com/economy/global-economy/article/3337642/china-expands-digital-yuan-push-singapore-and-asean-trade-routes?utm_source=rss_feed Wed, 24 Dec 2025 11:30:09 +0000 Sylvia Ma Sylvia Ma China’s central bank has set the yuan’s daily reference rate against the US dollar at the strongest level in more than a year, with analysts expecting room for appreciation should a December rate cut by the US Federal Reserve weaken the dollar. The People’s Bank of China set the yuan’s midpoint rate, also known as the daily fixing rate, at 7.0796 to the US dollar on Wednesday – the strongest showing since October 2024. The decision followed a 0.34 per cent rally in the offshore yuan on Tuesday,... https://www.scmp.com/economy/china-economy/article/3334178/china-sets-strongest-yuan-fix-over-year-fed-cut-bets-rise?utm_source=rss_feed https://www.scmp.com/economy/china-economy/article/3334178/china-sets-strongest-yuan-fix-over-year-fed-cut-bets-rise?utm_source=rss_feed Wed, 26 Nov 2025 05:10:10 +0000 Alice Li,Sylvia Ma Alice Li,Sylvia Ma China’s central bank has adopted a more proactive tone when describing its efforts to promote the global use of the yuan – a rhetorical change that could signal increased efforts to internationalise the currency amid growing concerns over the US dollar. At a recent meeting, People’s Bank of China Governor Pan Gongsheng pledged to “promote the internationalisation of the yuan”, a noticeable shift in tone from earlier statements by central bank officials, which typically referred to “prudently and... https://www.scmp.com/economy/china-economy/article/3330605/new-phrase-new-phase-chinas-central-bank-adjusts-language-yuan-internationalisation?utm_source=rss_feed https://www.scmp.com/economy/china-economy/article/3330605/new-phrase-new-phase-chinas-central-bank-adjusts-language-yuan-internationalisation?utm_source=rss_feed Tue, 28 Oct 2025 08:08:42 +0000 Xinyi Wu Xinyi Wu China on Monday reaffirmed its hardline approach towards virtual currencies at home, warning of the risks of stablecoins, despite growing concerns that the United States might have consolidated its US dollar dominance through them. Instead, the world’s second largest economy vowed to broaden the use of its central bank digital currency known as e-CNY, according to Pan Gongsheng, governor of the People’s Bank of China. “[Stablecoins] are still in their early stages of development,” said Pan,... https://www.scmp.com/economy/global-economy/article/3330525/china-doubles-down-crypto-crackdown-central-bank-vows-expand-digital-yuan?utm_source=rss_feed https://www.scmp.com/economy/global-economy/article/3330525/china-doubles-down-crypto-crackdown-central-bank-vows-expand-digital-yuan?utm_source=rss_feed Mon, 27 Oct 2025 15:36:10 +0000 Jane Cai Jane Cai Digital currency is emerging as a powerful, disruptive tool in global geopolitics, fundamentally reshaping the financial battlefield in times of conflict, according to a commentary in a key Communist Party publication. Nations are increasingly leveraging digital assets to bypass international sanctions, mobilise vital resources and maintain economic stability during regional conflicts, according to the author of an article published on Monday in Study Times, the official newspaper of the Central... https://www.scmp.com/news/china/diplomacy/article/3330105/could-china-militarise-cryptocurrencies-sanction-proof-its-economy?utm_source=rss_feed https://www.scmp.com/news/china/diplomacy/article/3330105/could-china-militarise-cryptocurrencies-sanction-proof-its-economy?utm_source=rss_feed Sat, 25 Oct 2025 15:55:08 +0000 Sylvia Ma Sylvia Ma The Chinese yuan’s share in global foreign exchange (forex) trading climbed to 8.5 per cent this year while maintaining its position as the world’s fifth-most traded currency, according to survey findings by the so-called central bank for central banks. The proportion, unveiled by the Bank for International Settlements (BIS) in its 2025 Triennial Central Bank Survey – launched in April, with the findings released on Tuesday – showed an increase from 7 per cent in the 2022 survey, with the yuan’s... https://www.scmp.com/economy/global-economy/article/3327391/chinese-yuans-forex-market-share-grows-85-global-position-firms-bis-survey?utm_source=rss_feed https://www.scmp.com/economy/global-economy/article/3327391/chinese-yuans-forex-market-share-grows-85-global-position-firms-bis-survey?utm_source=rss_feed Tue, 30 Sep 2025 13:00:10 +0000 Laura Zhou Laura Zhou A yuan-based payment system would be crucial to building the multipolar world China has been calling for, according to a Russian billionaire and close associate of President Vladimir Putin. “A multipolar world will depend on how quickly China could develop a payment system, and it depends upon Chinese banks,” Oleg Deripaska, the founder of Russian aluminium giant Rusal, said in Beijing on Wednesday. “Chinese banks are too dependent upon dollar assets, and they are scared to death to take any... https://www.scmp.com/news/china/diplomacy/article/3324469/chinas-vision-new-multipolar-order-depends-yuan-based-system-oleg-deripaska-says?utm_source=rss_feed https://www.scmp.com/news/china/diplomacy/article/3324469/chinas-vision-new-multipolar-order-depends-yuan-based-system-oleg-deripaska-says?utm_source=rss_feed Fri, 05 Sep 2025 10:00:12 +0000 Aileen Chuang Aileen Chuang Hong Kong is poised to gain from mainland China’s expanding Belt and Road Initiative, as new projects under the effort to build a China-centred economic network increasingly focus on green development, digital transformation and trade-corridor connectivity, according to HSBC. Hong Kong, with its strengths in green finance and status as the world’s largest offshore yuan hub, was set to play a bigger role as the 12‑year‑old belt and road plan shifted towards more private sector-led projects across... https://www.scmp.com/business/china-business/article/3324330/chinas-ramp-belt-and-road-investments-plays-hong-kongs-strengths-hsbc?utm_source=rss_feed https://www.scmp.com/business/china-business/article/3324330/chinas-ramp-belt-and-road-investments-plays-hong-kongs-strengths-hsbc?utm_source=rss_feed Thu, 04 Sep 2025 08:30:27 +0000 Alice Li Alice Li The Chinese yuan is set to continue making gains against the US dollar over the coming months, as China’s central bank sets strong daily reference rates for the currency and traders bet on possible US interest rate cuts, analysts said. The People’s Bank of China set its strongest onshore yuan daily reference rate of the year on Friday, at 7.1030 per US dollar, with the yuan’s fixing rate gaining 0.65 per cent against the dollar over the month of August. On Monday, the central bank set the daily... https://www.scmp.com/economy/china-economy/article/3323909/chinas-yuan-set-more-gains-against-us-dollar-fed-sends-dovish-signals?utm_source=rss_feed https://www.scmp.com/economy/china-economy/article/3323909/chinas-yuan-set-more-gains-against-us-dollar-fed-sends-dovish-signals?utm_source=rss_feed Mon, 01 Sep 2025 08:37:35 +0000 Sylvia Ma Sylvia Ma China’s central bank has set the yuan’s daily reference rate against the US dollar at the strongest level in more than nine months, as bets on rate cuts by the Federal Reserve are growing following a dovish pivot by its chair, Jerome Powell. On Monday, the People’s Bank of China set the yuan’s midpoint rate – also known as the daily fixing rate – at 7.1161 per US dollar, its strongest showing since early November. Compared with 7.1321 in the previous release, Monday’s fixing also marked the... https://www.scmp.com/economy/china-economy/article/3323017/chinas-yuan-fixing-rate-hits-9-month-high-after-dovish-pivot-us-fed-chair?utm_source=rss_feed https://www.scmp.com/economy/china-economy/article/3323017/chinas-yuan-fixing-rate-hits-9-month-high-after-dovish-pivot-us-fed-chair?utm_source=rss_feed Mon, 25 Aug 2025 04:14:28 +0000 Sylvia Ma Sylvia Ma The yuan has the potential to become a safe-haven currency, a former central bank official said while calling for capital-control flexibility and greater efforts to boost foreign participation. The argument – presented before the US Treasury chief rejected the possibility last week of the yuan gaining reserve-currency status – has underscored the ongoing debate over Beijing’s push to internationalise the yuan. And it comes at a time when confidence in the US dollar is being tested by mounting... https://www.scmp.com/economy/china-economy/article/3317643/why-chinas-yuan-can-be-safe-haven-currency-former-bank-official-flags-its-advantages?utm_source=rss_feed https://www.scmp.com/economy/china-economy/article/3317643/why-chinas-yuan-can-be-safe-haven-currency-former-bank-official-flags-its-advantages?utm_source=rss_feed Thu, 10 Jul 2025 06:00:16 +0000 Leopold Chen Leopold Chen Beijing must be proactive in “adapting to the trend of stablecoins”, and waiting is not an option as the US has a head start, warns an article on Monday in state media that simultaneously calls for leadership to consider legislation regulating stablecoins while hyping up their potential role in making the yuan a more global currency. Securities Times, a publication under party mouthpiece People’s Daily, said experts and industry insiders “generally believe that, as an emerging payment tool, the... https://www.scmp.com/economy/china-economy/article/3315469/china-needs-yuan-backed-stablecoins-sooner-rather-later-state-media-urges-beijing?utm_source=rss_feed https://www.scmp.com/economy/china-economy/article/3315469/china-needs-yuan-backed-stablecoins-sooner-rather-later-state-media-urges-beijing?utm_source=rss_feed Mon, 23 Jun 2025 09:00:09 +0000 Ji Siqi Ji Siqi China reduced its stockpile of US Treasuries to a 16-year low in April, as an escalating trade war with Washington sparked concerns about the long-standing status of American government bonds as the world’s safest asset. Beijing’s holdings dropped to US$757 billion, down US$8.2 billion from March, according to the latest data released by the US Treasury Department. The figures for April marked the second consecutive month of decline and the lowest level since March 2009, according to data... https://www.scmp.com/economy/china-economy/article/3315093/china-cuts-us-treasury-stockpiles-16-year-low-amid-trumps-trade-war?utm_source=rss_feed https://www.scmp.com/economy/china-economy/article/3315093/china-cuts-us-treasury-stockpiles-16-year-low-amid-trumps-trade-war?utm_source=rss_feed Thu, 19 Jun 2025 13:00:11 +0000 Luna Sun,Frank Chen Luna Sun,Frank Chen With major economies gearing up for the rising ubiquity of stablecoins and their impact on the global economy, former Chinese central bank chief Zhou Xiaochuan has warned that US dollar-backed stablecoins could accelerate the “dollarisation” of the international monetary system. Amid the explosive growth of cryptocurrency in the past few years, continued focus from high-level figures reflects the Chinese government’s interest in underlying technologies and their potential role in cross-border... https://www.scmp.com/economy/china-economy/article/3315090/why-us-backed-stablecoins-have-china-wary-potentially-more-dominant-dollar?utm_source=rss_feed https://www.scmp.com/economy/china-economy/article/3315090/why-us-backed-stablecoins-have-china-wary-potentially-more-dominant-dollar?utm_source=rss_feed Thu, 19 Jun 2025 10:30:49 +0000 Associated Press Associated Press The US declined to label China a currency manipulator in a new Treasury report released on Thursday, but accuses Beijing of standing out among America’s major trading partners for lacking transparency in its exchange rate policies. Treasury’s semi-annual report to Congress – called Macroeconomic and Foreign Exchange Policies of Major Trading Partners of the United States – comes as the Trump administration seeks to strike a trade deal with China, averting a trade war that has been brewing... https://www.scmp.com/news/world/united-states-canada/article/3313260/us-declines-label-china-currency-manipulator-blasts-its-transparency-policies?utm_source=rss_feed https://www.scmp.com/news/world/united-states-canada/article/3313260/us-declines-label-china-currency-manipulator-blasts-its-transparency-policies?utm_source=rss_feed Thu, 05 Jun 2025 22:42:57 +0000 Ji Siqi Ji Siqi Welcome to Open Dialogue, a new series from the Post that brings together leading voices to discuss the stories and subjects occupying international headlines. Our first edition features prominent economists from China and the US, talking about the US dollar’s lost status in international markets and whether the yuan can begin to replace it as the global reserve currency. Dr Yu Yongding, a former adviser to China’s central bank, is an advocate for a free-floating yuan and broad fiscal stimulus... https://www.scmp.com/plus/article/3313152/yu-yongding-and-kenneth-rogoff-yuans-future-international-currency?utm_source=rss_feed https://www.scmp.com/plus/article/3313152/yu-yongding-and-kenneth-rogoff-yuans-future-international-currency?utm_source=rss_feed Thu, 05 Jun 2025 06:24:12 +0000 Xiaofei Xu Xiaofei Xu At last week’s Bitcoin 2025 conference in Las Vegas, there was one phrase on everyone’s lips: the Genius Act. Vice-President J.D. Vance used his speech at the event to urge lawmakers to pass the bill – also known as the Guiding and Establishing National Innovation for US Stablecoins Act – which is currently the subject of heated debate on Capitol Hill. “Dollar-pegged stablecoins, particularly once Genius is enacted, are only going to help the American economy and it’s only going to help the... https://www.scmp.com/economy/global-economy/article/3312901/what-genius-act-and-can-it-really-cement-us-dollar-supremacy?utm_source=rss_feed https://www.scmp.com/economy/global-economy/article/3312901/what-genius-act-and-can-it-really-cement-us-dollar-supremacy?utm_source=rss_feed Tue, 03 Jun 2025 14:00:09 +0000 Sylvia Ma,Ji Siqi Sylvia Ma,Ji Siqi As the United States faces renewed concern over unsustainable debts and its deficit outlook, ignited by the “One Big Beautiful Bill Act” and new tariff threats from US President Donald Trump, China’s yuan is being hailed by analysts for its resiliency during the ongoing trade war, with some pointing to a “renaissance of the renminbi”. Concerns over the sustainability of US debt levels intensified after the US House of Representatives last week passed a sweeping tax and spending bill, which is... https://www.scmp.com/economy/china-economy/article/3312008/how-us-dollar-doubts-risk-triple-whammy-could-give-rise-yuans-renaissance?utm_source=rss_feed https://www.scmp.com/economy/china-economy/article/3312008/how-us-dollar-doubts-risk-triple-whammy-could-give-rise-yuans-renaissance?utm_source=rss_feed Tue, 27 May 2025 15:00:08 +0000 Kandy Wong Kandy Wong Gold prices have surged this year as investors seek safe investments amid a spike in economic uncertainty unleashed by US President Donald Trump’s tariff policies. But economists say that there is another important factor driving the rally: purchases by central banks. In this explainer, we explore why central banks are increasingly turning to gold assets, how that is driving a long-term structural shift in demand for the metal, and what that means for gold prices going forward. Why are central... https://www.scmp.com/economy/china-economy/article/3311909/why-central-banks-are-playing-big-role-pushing-gold-prices?utm_source=rss_feed https://www.scmp.com/economy/china-economy/article/3311909/why-central-banks-are-playing-big-role-pushing-gold-prices?utm_source=rss_feed Tue, 27 May 2025 03:40:07 +0000 Zhou Xin Zhou Xin In the aftermath of the 2008 global financial crisis, Chinese authorities kick-started a process to make the yuan an international currency. Yet, as measured by its use in global trade and investment, as well as central bank reserves, Beijing has achieved only limited success in boosting the currency, also known as the renminbi. According to data compiled by Swift, the Belgium-based operator of the international payments messaging network for financial institutions, the yuan’s share in global... https://www.scmp.com/opinion/china-opinion/article/3311816/beijing-should-seize-rattled-faith-us-dollar-accelerate-yuans-global-influence?utm_source=rss_feed https://www.scmp.com/opinion/china-opinion/article/3311816/beijing-should-seize-rattled-faith-us-dollar-accelerate-yuans-global-influence?utm_source=rss_feed Mon, 26 May 2025 23:00:15 +0000 Aileen Chuang Aileen Chuang The third and final part of the decoupling series looks at how Hong Kong’s financial system is crucial for China to advance the internationalisation of the yuan amid geopolitical tensions and discussions on de-dollarisation. Read part one and part two. Anyone seeking evidence that international businesses are actively looking to diversify from the US dollar can find it in Qatar, according to Mary Huen Wai-yi, chairwoman of the Hong Kong Association of Banks. Businesses in the affluent Middle... https://www.scmp.com/business/banking-finance/article/3311570/why-chinas-yuan-needs-hong-kong-reach-new-international-heights?utm_source=rss_feed https://www.scmp.com/business/banking-finance/article/3311570/why-chinas-yuan-needs-hong-kong-reach-new-international-heights?utm_source=rss_feed Sat, 24 May 2025 04:00:09 +0000 Bloomberg Bloomberg US dollar-based assets have “enduring advantages” and remain virtually irreplaceable in the global financial system despite the United States losing its top triple-A credit rating, according to Singapore’s central bank chief. “They are the dominant, safe assets for use in the financial system, deeply embedded,” Monetary Authority of Singapore Managing Director Chia Der Jiun said at the Qatar Economic Forum on Tuesday. “The US$28-trillion Treasury market is fundamental and systemic to the global... https://www.scmp.com/news/asia/southeast-asia/article/3311149/singapores-central-bank-chief-sees-no-alternative-us-dollar-assets-despite-downgrade?utm_source=rss_feed https://www.scmp.com/news/asia/southeast-asia/article/3311149/singapores-central-bank-chief-sees-no-alternative-us-dollar-assets-despite-downgrade?utm_source=rss_feed Wed, 21 May 2025 02:16:30 +0000 Ralph Jennings Ralph Jennings China’s yuan has the potential to rival a weakening US dollar as a global currency if Beijing liberalises convertibility and access for foreigners, according to a senior Asian economist. China wants more international use of its centrally controlled yuan, and the currency already works fluidly in cross-border purchase settlements, said Hoe Ee Khor, chief economist with the Singapore-based Asean+3 Macroeconomic Research Office. “The US exceptionalism is over – the beginning of the end,” Khor told... https://www.scmp.com/economy/global-economy/article/3310638/chinas-yuan-fit-rival-us-dollar-global-currency-if-more-accessible-economist?utm_source=rss_feed https://www.scmp.com/economy/global-economy/article/3310638/chinas-yuan-fit-rival-us-dollar-global-currency-if-more-accessible-economist?utm_source=rss_feed Mon, 19 May 2025 00:00:14 +0000 Andrew Sheng Andrew Sheng After finance ministers and central bankers met at the World Bank/IMF spring meetings in Washington last month, the buzz is on the future of the dollar-anchored international monetary system. US Treasury Secretary Scott Bessent told the gathering that, while the purpose of the Bretton Woods institutions was stability, “everywhere we look across the international economic system today, we see imbalance”. He blamed US deficits on “an unfair trading system”. He blamed the “intentional policy... https://www.scmp.com/opinion/world-opinion/article/3309622/trump-trying-pull-dollar-carpet-under-monetary-system?utm_source=rss_feed https://www.scmp.com/opinion/world-opinion/article/3309622/trump-trying-pull-dollar-carpet-under-monetary-system?utm_source=rss_feed Fri, 09 May 2025 08:30:09 +0000 Alice Li Alice Li Asia’s largest economies made a decision that could signal a shift away from the US dollar on Sunday, as they approved a new rapid financing mechanism that will for the first time use regional currencies including the Chinese yuan. The new scheme has been rapidly approved as countries across East and Southeast Asia look to shield themselves from the financial volatility unleashed by US President Donald Trump’s global tariff war, which has triggered turbulence in the US Treasuries market and an... https://www.scmp.com/economy/china-economy/article/3309279/has-asia-just-taken-step-away-us-dollar?utm_source=rss_feed https://www.scmp.com/economy/china-economy/article/3309279/has-asia-just-taken-step-away-us-dollar?utm_source=rss_feed Tue, 06 May 2025 23:00:15 +0000 Luna Sun Luna Sun The offshore yuan strengthened and broke past the 7.2 level against the US dollar for the first time since November, signalling an optimistic shift in market sentiment as hopes of a trade war thaw and fresh demand grows for Chinese assets. The recent renminbi gain was largely driven by expectations that the US and China will soon begin negotiating, said Xu Tianchen, senior China economist at the Economist Intelligence Unit, adding that a working-level engagement may have already started, or was... https://www.scmp.com/economy/china-economy/article/3309093/chinas-offshore-yuan-jumps-6-month-high-rollback-egregious-tariffs-seen-likely?utm_source=rss_feed https://www.scmp.com/economy/china-economy/article/3309093/chinas-offshore-yuan-jumps-6-month-high-rollback-egregious-tariffs-seen-likely?utm_source=rss_feed Mon, 05 May 2025 08:00:11 +0000 China has released an action plan to promote the use of the yuan and its own payment system in international trade, as it seeks to reduce its dependence on the dollar amid an escalating trade war with the United States. The plan – jointly released by the Shanghai municipal government, the People’s Bank of China and the country’s financial regulators on Monday – aims to leverage Shanghai’s role as a global financial hub to promote the use of the Chinese currency, especially in trade involving... https://www.scmp.com/economy/china-economy/article/3307472/china-rolls-out-plan-promote-its-own-payment-system-us-trade-war-simmers?utm_source=rss_feed https://www.scmp.com/economy/china-economy/article/3307472/china-rolls-out-plan-promote-its-own-payment-system-us-trade-war-simmers?utm_source=rss_feed Tue, 22 Apr 2025 14:00:12 +0000 Enterprises are growing more keen on using the yuan in the settlement of international payments – a trend emerging as the safety and credibility of US assets are questioned, according to survey results released by Renmin University’s International Monetary Institute on Sunday. And a weakening of the US dollar’s dominance, particularly exacerbated by a series of policies from the new US administration, has created a favourable opportunity for the yuan’s internationalisation, according to... https://www.scmp.com/economy/global-economy/article/3307335/chinas-yuan-sees-payment-popularity-rise-amid-soaring-volatility-us-treasury-market?utm_source=rss_feed https://www.scmp.com/economy/global-economy/article/3307335/chinas-yuan-sees-payment-popularity-rise-amid-soaring-volatility-us-treasury-market?utm_source=rss_feed Mon, 21 Apr 2025 15:00:08 +0000 Igor Patrick Igor Patrick A top adviser to US President Donald Trump said that Washington’s support for Argentina’s ongoing negotiations with the International Monetary Fund hinges on President Javier Milei distancing himself from China, specifically by ending a currency swap agreement with Beijing. Speaking at Miami Dade College on Thursday, Mauricio Claver Carone, Trump’s special envoy for Latin America, described Milei as “an ally” but stressed that Washington’s priority is to ensure any new IMF deal does not... https://www.scmp.com/news/china/diplomacy/article/3305306/us-pressures-argentinas-milei-scrap-currency-swap-accord-china?utm_source=rss_feed https://www.scmp.com/news/china/diplomacy/article/3305306/us-pressures-argentinas-milei-scrap-currency-swap-accord-china?utm_source=rss_feed Fri, 04 Apr 2025 20:42:51 +0000 There has been a frenzy of speculation among investors and policymakers in recent months that the administration of US President Donald Trump is working on a sweeping international agreement to reshape America’s role in the global economy. Some say the Trump team views such a deal – which has been dubbed a “Mar-a-Lago Accord”, in a nod to the Plaza Accord of the 1980s – as integral to their push to revitalise American manufacturing and reduce the US’ gaping trade deficit. Though the White House... https://www.scmp.com/economy/china-economy/article/3304925/what-mar-lago-accord-and-will-it-really-crash-chinas-economy?utm_source=rss_feed https://www.scmp.com/economy/china-economy/article/3304925/what-mar-lago-accord-and-will-it-really-crash-chinas-economy?utm_source=rss_feed Wed, 02 Apr 2025 12:00:13 +0000 India has “absolutely no interest” in undermining the US dollar, and its fellow members of the Brics grouping of emerging economies have not formed a unified position on a proposed alternative payment system, according to New Delhi’s foreign minister. Speaking at the London-based think tank Chatham House last week during a six-day visit to Britain and Ireland, Subrahmanyam Jaishankar described the dollar as a “source of international economic stability”. His comments followed repeated warnings... https://www.scmp.com/news/china/diplomacy/article/3301924/brics-nations-divide-us-dollar-replacement-india-declaring-no-interest?utm_source=rss_feed https://www.scmp.com/news/china/diplomacy/article/3301924/brics-nations-divide-us-dollar-replacement-india-declaring-no-interest?utm_source=rss_feed Tue, 11 Mar 2025 13:30:08 +0000 US President Donald Trump’s latest accusation of China’s trade advantage via yuan depreciation suggests his sights are set on reducing the US trade deficit, according to analysts who also noted that a priority of China’s central bank is stabilising the currency against the backdrop of a strong dollar and mounting tariff risks. They contended that Trump’s warning on Monday – that China and Japan “can’t continue to reduce” their currencies because it is “unfair” to the US – clashes with Beijing’s... https://www.scmp.com/economy/global-economy/article/3301039/economists-rebuke-trumps-currency-claims-explain-why-beijing-wants-yuan-stable?utm_source=rss_feed https://www.scmp.com/economy/global-economy/article/3301039/economists-rebuke-trumps-currency-claims-explain-why-beijing-wants-yuan-stable?utm_source=rss_feed Tue, 04 Mar 2025 13:30:08 +0000 US President Donald Trump’s threats towards countries seeking to reduce their reliance on the US dollar may simply accelerate their move away from the American currency, economists told the World Economic Forum in Davos, Switzerland, on Tuesday. “You want to persuade people to use your currency because it fulfills some of the things ... [like] providing stability and means of payment,” said Kenneth Rogoff, professor of economics at Harvard University, during a panel discussion at the event. “And... https://www.scmp.com/economy/global-economy/article/3295754/trumps-threats-will-only-drive-countries-away-us-dollar-economists-warn-davos?utm_source=rss_feed https://www.scmp.com/economy/global-economy/article/3295754/trumps-threats-will-only-drive-countries-away-us-dollar-economists-warn-davos?utm_source=rss_feed Wed, 22 Jan 2025 04:36:38 +0000 China’s central bank has mounted a stronger defence for the yuan and the domestic foreign exchange market, as the country braces for the return of Donald Trump who is expected to bring greater headwinds to trade and the exchange rate. The People’s Bank of China and the State Administration of Foreign Exchange announced jointly on Monday an increase in the macroprudential adjustment parameter for the cross-border financing of enterprises and financial institutions, from 1.5 to 1.75 – a move... https://www.scmp.com/economy/china-economy/article/3294504/boost-chinas-yuan-central-bank-makes-it-easier-firms-borrow-more-foreign-debt?utm_source=rss_feed https://www.scmp.com/economy/china-economy/article/3294504/boost-chinas-yuan-central-bank-makes-it-easier-firms-borrow-more-foreign-debt?utm_source=rss_feed Mon, 13 Jan 2025 06:20:43 +0000