Sunday, December 17, 2017

Tag: Renminbi

China’s Xi Jinping At Davos, World’s Most Powerful Beggar

Xi Jinping will address the World Economic Forum on Tuesday in Davos, the first time a Chinese leader has done so. Chinese state media tells us he will speak strongly in favor of globalization. That message will be difficult to accept, however, as his country is closing off its market,...

IMF Officially Gives China A Seat at the Adult Table of World Economies

China has the world’s second-largest economy, but its currency, the renminbi, has long been kept out of the International Monetary Fund’s elite club of the world’s strongest national tenders. That changed this weekend. After years of liberalization reforms, the IMF announced Saturday the renminbi would join the bank’s group of...

China to lead way with landmark SDR bond offerings

HONG KONG/SINGAPORE, (IFR) - China is pushing for a landmark offering of bonds denominated in Special Drawing Rights, the International Monetary Fund's synthetic reserve currency, ahead of the renminbi's official entry into the SDR basket in October. The World Bank and China Development Bank are actively preparing to issue SDR...

It’s Time for China Analysts to Stop Talking Past One Another

What exactly is going on in the People's Republic? Even with good data, experts can't agree. On August 12, the International Monetary Fund (IMF) issued its annual report card on China's economy and gave the country mixed grades, finding that its “economic transition will continue to be complex, challenging, and...

Song Xin: Increase Gold Reserves And Join SDR

The Chairman of the China Gold Association and General Manager and Party Committee Secretary of China National Gold Group Corporation, the latter being China's largest gold mining enterprise, is Song Xin and happens to be one of my favorite commentators in China. This gentleman made waves in July 2014...

What China’s SDR Bond Issue Really Means

This is the first step toward one world currency. They promised, they delivered. The World Bank will issue a $2.8 billion SDR bond, or Special Drawing Rights bond, in China in August. Separately, the China Development Bank will also issue between $300 million and $800 million of SDR notes. China, the...

How China’s Currency Manipulation Enhances the Global Role of the U.S. Dollar

But it's not quite that simple. In fact, Beijing benefits from the dollar’s dominance. On April 16, Zhou Xiaochuan, the governor of China’s central bank, the People’s Bank of China, once again set off alarm bells during a speech at the International Monetary Fund (IMF). “Starting from this April,” he...

China Bank Bailout Calls Grow Louder as Markets Seen Vulnerable

Predictions of a Chinese banking system bailout are going mainstream. What was once the fringe view of permabears and short sellers is now increasingly being adopted by economists at some of the world’s biggest banks and brokerages. Nine of 15 respondents in a Bloomberg survey at the end of last month,...

Potential U.S. Consequences of China’s Capital Account Liberalization

In recent years, the United States has had positive net international income (e.g., stock dividends and bond coupon payments) despite being a net debtor to China. China, however, has had negative net income, despite being a lender to the United States. Recent policy changes in China could end this...

China’s exports tumble again in May as global demand stays weak

May's soggy Chinese trade data offered the latest sign that the world's second-largest economy was still a long way off from full health. Exports in dollar-denominated terms tanked 4.1 percent on-year, more than double April's 1.8 percent fall and slightly worse than estimates for a 3.6 percent decline, Reuters said...

U.S. to Press China to Curb Industrial Output

BEIJING — The Obama administration plans to use annual talks with leaders in Beijing to push for cuts in excess Chinese industrial output, which has inundated foreign markets with discounted steel, aluminum and other products, Treasury Secretary Jacob J. Lew said in Beijing on Sunday ahead of the meeting. The...

Is China on a Path to Debt Ruin?

There's still a chance to avoid the worst. It depends on how bold the government is willing to be. In the first quarter of 2016, Chinese debt rose to 237 percent of GDP — a level comparable to that of the U.S. or the Eurozone and yet much larger than...

China Quietly Prepares Golden Alternative to Dollar System

China, as current chair of the G-20 group of nations, called on France to organize a very special conference in Paris. The fact such a conference would even take place in an OECD country is a sign of how weakened the hegemony of the US-dominated Dollar System has become. On...

China’s yuan fixing by PBOC jumps most since 2005

China's central bank guided the yuan higher at the sharpest pace since 2005 on Friday in a move analysts attributed to the dollar's weakness against major currencies. The central bank, the People's Bank of China (PBOC), set the midpoint of the yuan trading band against the dollar at 6.4589, down...

China’s obsession with IMF’s accounting unit and forging new global financial order reaches new...

Beijing is reviving efforts to broaden use of Special Drawing Rights to achieve longstanding strategic aim of dethroning US dollar in international monetary system. It is just one line in a foreign exchange document, but it signals a renewed seriousness. Last week, China's central bank started publishing the nation’s foreign exchange...
video

Special Drawing Right (SDR)

The SDR is an international reserve asset, created by the IMF in 1969 to supplement its member countries’ official reserves. As of March 2016, 204.1 billion SDRs (equivalent to about $285 billion) had been created and allocated to members. SDRs can be exchanged for freely usable currencies. The value...

James Rickards: You Are Going to See World Money

Why a reform of the financial system is inevitable, with or without crisis. An introduction to lawyer, portfolio manager, government adviser, lecturer, and author James Rickards could easily be five pages long. Sifting through his CV, it’s easier to pick the things he doesn’t do rather than listing all the...

Too Big to Sanction

How the internationalization of China’s currency hurts Washington’s ability to punish human rights violators. In November 2015, when the International Monetary Fund announced it was adding China’s currency, the renminbi (RMB), to its basket of four reserve currencies known as Special Drawing Rights (SDR), the fund’s managing director, Christine Lagarde,...

China assures U.S. no devaluation, pushing reforms forward

BEIJING - China’s premier told visiting U.S. Treasury Secretary Jacob Lew on Monday his government is pressing ahead with painful reforms to shrink bloated coal and steel industries that are a drag on its slowing economy and ruled out devaluing its currency as a short-cut to boosting exports. Premier Li...

Is China Being Wooed by Fantasies of Western Acceptance?

In the area of finance and creation of new financial institutions much hope of many nations has been placed on China. Last year China played a catalytic role in helping establish a new BRICS Infrastructure Development Bank to finance infrastructure projects in select emerging economies. Soon after Beijing announced...

Betting against China’s currency

The Chinese economy has experienced a bumpy start in 2016. Trading on the country's stock market had been suspended twice to prevent markets from panicking, and the value of the national currency, the yuan (also called renminbi), dropped to a five-year low against the US dollar. Earlier this week,...

Russia is now China’s biggest oil partner – and it’s a huge problem for...

Saudi Arabia has long trumped Russia in the Chinese oil market. The Saudi share of Chinese crude imports at the beginning of the decade was about 20%, while Russia's was below 7%, according to data cited by RBC Capital Markets. But now the Russians are creeping in — and the Saudis...

An American hedge fund investor Kyle Bass declares to bet against the China RMB

Recently, the well-known American hedge-fund investor Kyle Bass has disclosed to The Wall Street Journal that the Hayman Capital Management under him will bet 85% assets on the devaluation transactions of the RMB and Hong Kong dollars in the next three years, it involving billions of dollars in funding...

The Chinese RMB trading and clearing negotiation in America was suddenly blocked, the truth...

The negotiation of Yuan trading and clearing in America which starting from last November was suddenly blocked, This negotiations was about allowing the Renminbi “landed” in the US. On January 26th, The Wall Street Journal reported the news, judging from the report contents, the possibility of the Chinese resistance was...

China shares end at 14-month lows after late selling frenzy

Chinese shares plunged more than 6 percent to 14-month lows on Tuesday after oil prices dropped again, reviving concerns about global growth and prompting a sell-off in the world's equity markets. Battered by a late selling frenzy, the benchmark Shanghai Composite Index .SSEC ended down 6.4 percent at 2749.79 points,...

A recession worse than 2008 is coming

The S&P 500 has begun 2016 with its worst performance ever. This has prompted Wall Street apologists to come out in full force and try to explain why the chaos in global currencies and equities will not be a repeat of 2008. Nor do they want investors to believe...

The China Syndrome: The Coming Global Financial Meltdown

All the phantom wealth piled up in China's boost phase is now melting down, and the China Syndrome will trigger a meltdown in global phantom assets. The 1979 film The China Syndrome took its name from the darkly humorous notion that a nuclear reactor meltdown in the U.S. would burn...

Has China lost control of its currency?

Markets have taken fright at the prospect a new round of currency wars. But the Chinese say they want a "stable" exchange rate. So what's really going on? What's happened to the renminbi? Since the summer, investors have been keeping an uneasy eye on the value of the Chinese currency. In August,...

Wall Street Slides After Chinese Stocks Plunge

On the first trading day of the new year, investors’ old worries flooded back. Global stock markets tumbled on Monday, as further fears about a slowdown in China’s economy reignited concerns about global growth. The selling on Monday started after China released a weak manufacturing report, and continued after the United...

China Carefully Moving to Displace Dollar

While Washington seems obsessed with trying to humiliate China’s President Xi Jinping and make him lose face, sending warships into Chinese territorial waters in the South China Sea just days after Obama’s White House meeting with President XI, and other provocative acts, Britain’s government is taking advantage of the...

Article Filter Options