US spares China from yuan-manipulator label amid trade war

WASHINGTON (Oct 18): The Treasury Department stopped short of declaring China a currency manipulator in its semi-annual report on foreign-exchange rates, averting an escalation of a trade war while serving notice that the US will closely watch the yuan after its recent slide.

“Of particular concern are China’s lack of currency transparency and the recent weakness in its currency,” Treasury Secretary Steven Mnuchin said in a statement. “We will continue to monitor and review China’s currency practices, including through ongoing discussions with the People’s Bank of China.”

JPMorgan sees all-out US-China tariffs, lowers yuan call

(Oct 1): With little prospect of a restart for US-China trade talks, JPMorgan Chase & Co. now expects an escalation in tensions that will see higher American tariffs on all Chinese imports, sending the yuan sliding to its weakest against the dollar in more than a decade.

China won't devalue yuan to boost exports, Premier Li says

(Sept 19): China won’t devalue its currency in order to make its exports more competitive amid the trade war with the US, Premier Li Keqiang said, hours after his country retaliated against the latest increase in tariffs by the Trump administration.

“Recent fluctuations in the renminbi exchange rate have been seen as an intentional measure, but that isn’t true,” Li said in a keynote speech at the World Economic Forum in Tianjin on Wednesday. “One-way devaluation will do more harm than good to China’s economy. China will by no means stimulate exports by devaluing the yuan.”

China's yuan plunges most since aftermath of devaluation in 2015

(Feb 8): China’s yuan sank the most since the aftermath of the shock devaluation of the currency in August 2015 after trade surplus figures missed estimates and amid speculation policy makers will step up efforts to rein in gains.

The yuan is Hong Kong's new darling as investors chase higher yields

HONG KONG/BEIJING (Aug 17): The big ball of money in Hong Kong is rolling to the yuan, and the local dollar is suffering.

After years of underperforming, the offshore yuan is near its highest level versus the city’s currency in more than 12 months. Yuan deposits in the former British colony have stabilized after halving in the past two years, while buying mainland bonds is more lucrative: benchmark 10-year China government debt yields more than twice as much as its counterpart in Hong Kong.

China moves to make $13 tril domestic bond market more global

HONG KONG (March 13): Citigroup said Tuesday it will include onshore Chinese debt in some of its gauges, while the central bank pledged to create a "more convenient and friendly environment" for foreign investors.

This follows a recent measure to allow currency hedging for bonds, a move seen as one of many efforts needed to lower barriers.

The world's third-largest debt market needs the money, with investors still smarting from the biggest slump in six years in January.

Pimco says China needs to get tougher in cat-and-mouse debt game

BEIJING (Feb 24): Beijing’s “cautious tightening signals” are largely being ignored by banks and at the local level, where attention is focused on maintaining steady economic growth, especially with key Communist Party meetings looming this year, according to Gene Frieda, executive vice president and global strategist for emerging markets at Pacific Investment Management Co.

A free-floating yuan is looking a bit more likely


HONG KONG (Jan 12): As China’s yuan swings back into the global spotlight, it might seem like an odd time for authorities in Beijing to loosen their grip on the tightly-managed currency.

Yet for a growing number of analysts and investors, the prospect of a freely floating yuan -- a Chinese exchange rate wholly determined by market forces -- is no longer a distant possibility. Advocates include a government-backed researcher and a former central bank adviser, while bond-market powerhouse Pacific Investment Management Co. says the chances of a free float are rising.

China's yuan down, state banks step in to temper fall

SHANGHAI (Dec 9): Chinese state banks jumped in to stem yuan weakness on Friday morning after the US dollar rose broadly, but the currency remained vulnerable in the face of a relentlessly rising greenback amid expectations of higher US interest rates.

The yuan touched 6.9000 per US dollar in early trade after the People's Bank of China lowered its midpoint the most in seven weeks to reflect a stronger US dollar.

A flood of US dollar liquidity stopped it in its tracks, however.

Yuan weakness is metals’ strength: Bloomberg Gadfly

SINGAPORE (Nov 17): Most commodities are denominated in, and therefore pegged to, the US dollar but these days the Chinese yuan is starting to have as much influence on prices.

While there were fundamental triggers behind the recent spike and drop in raw materials, it's becoming clear that Chinese trading was among the main drivers. Investors in the northeastern city of Dalian have been piling back into commodities in a replay of what happened earlier this year. That's partly because they're seeking to protect their global purchasing power as the Chinese currency loses value.

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