Category: China Currency Yuan
The analysis published under this category are as follows.Monday, June 27, 2011
China's Move Away from the U.S. Dollar Means You Need to Invest in the Yuan / Currencies / China Currency Yuan
Kerri Shannon writes: China has started diversifying away from the U.S. dollar, yet another sign that it's time to invest in the yuan.
A report from Standard Chartered Bank last week showed China's foreign exchange reserves expanded by $196 billion in the first four months of this year. About 75% of that investment was in non-U.S. dollar assets.
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Saturday, May 21, 2011
The China Trade / Currencies / China Currency Yuan
In an Undercollateralized World concluded by quoting Michael Lewitt. Lewitt, the proprietor of Harch Capital Management in Boca Raton, Florida, wrote in the May issue of his monthly letter, The Credit Strategist:
Sunday, February 20, 2011
Chinese Renminbi Announced As New World Reserve Currency After Emergency G20 Meeting / Currencies / China Currency Yuan
Dated [xx/xx/201x]: Fill in the future date of this article/press release by using your own common sense or Ouija board.
China’s President Hu Jintao and China Central Bank Advisor Xia Bin called an emergency meeting of the G-20 Member Countries (Argentina, Australia, Brazil, Canada, China, France, Germany, India, Indonesia, Italy, Japan, Mexico, Russia, Saudi Arabia, South Africa, South Korea, Turkey, United Kingdom, United States and the European Union) this weekend.
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Sunday, February 13, 2011
China Takes Tentative Steps Towards Global Currency / Currencies / China Currency Yuan
The move of the yuan as a global currency is a very important one in the long run, as it will have potentially dramatic effects on the U.S. dollar as the sole reserve currency but for now things are going along at a snail pace. In the interim, the Chinese currency is essentially pegged to the U.S. dollar (for better or worse). Until the % of growth in China from exports is reduced, and they are far more reliant on internal consumption I don't see this loose peg changing anytime soon. Longer term, with 3 ugly ducklings (euro, dollar, yen) dominating the world's FX markets, the cart will eventually be turned over when a country (or region) coming from a position of fiscal strength rather than weakness enters the fray. Via NYT:
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Wednesday, February 02, 2011
New China Yuan Policy Presents Investors with the "Trade of the Century" / Currencies / China Currency Yuan
Keith Fitz-Gerald writes: When the state-owned Bank of China Ltd. (BOC) recently announced that it would begin allowing U.S.-based customers to trade the Chinese yuan here, it represented the biggest step yet in China's ongoing campaign to build global acceptance for its currency.
That desire to boost interest in the yuan in the global currency and trade markets is bolstered by the fact that Beijing's foreign-exchange reserves have now reached a staggering $2.8 trillion.
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Thursday, January 13, 2011
Bank of China Seeks to Create Global Currency / Currencies / China Currency Yuan
Kerri Shannon writes: State-owned Bank of China Ltd. has announced that it will allow U.S. customers to open yuan accounts to buy and sell China's currency.
According Money Morning Chief Investment Strategist Keith Fitz-Gerald this is yet another deliberate move by China, which is attempting to promote the role of its currency in global trade.
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Wednesday, January 12, 2011
The China Miracle: Forex Reserves Hit Record $2.87 Trillion / Currencies / China Currency Yuan
In the 'Japan Miracle' of the 1980-1990's it is said that Japan essentially 'monetized its real estate.' There was also a mythology of the superiority of Japanese management, with an emphasis on quality management ironically pioneered by the American W. Edwards Deming.
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Saturday, September 25, 2010
How to Put a Stronger China Yuan Currency to Work for You / Currencies / China Currency Yuan
Jeff Manera writes: China has perpetually managed its currency, the yuan, to be undervalued. Estimates range from 30 percent to 40 percent on the amount the currency would appreciate if it was allowed to freely float with market forces.
This “management” has given China’s exporters an unfair advantage over other export-driven countries, such as Japan and South Korea, and has provided much of the rocket fuel that made China’s incredible expansion and growth possible.
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Friday, September 24, 2010
China Yuan Currency Revaluation Not All Good for the U.S. / Currencies / China Currency Yuan
The Obama administration and many in congress have been aggressively calling for a revaluation of the Chinese yuan vs. the United States dollar. As of September 22, the yuan has climbed for nine straight days setting fresh records against the dollar as the Chinese central bank changed the parity rate of the yuan to the dollar. As with any change, there are winners and there are losers because of the action by the Chinese government.
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Monday, September 13, 2010
China Trade Surplus Reignites Tensions Over the Yuan Currency Manipulation / Currencies / China Currency Yuan
Don Mille writes: China in August posted its third straight trade surplus of more than $20 billion, putting friction with the United States over the nation's currency back in the spotlight.
Exports rose 34.4% in August and imports climbed a greater-than-expected 35.2%, leaving the country with a $20.03 billion surplus, a customs bureau report showed Friday.
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Thursday, August 12, 2010
China Reports Huge Trade Surplus With U.S. Signaling More Currency Tensions / Currencies / China Currency Yuan
Despite forecasts of a cooling demand for Chinese products in the USA and EU, Beijing has reported a huge trade surplus figure after exports soared to 145.5 billion USD in July, a year-on-year increase of 38.1%. In the pipeline: tensions between Washington and Beijing over the valuation of the Renmimbi?
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Tuesday, July 13, 2010
The Case for the Yuan: Why China’s Currency Isn’t the Problem Policymakers Make it Out to Be / Currencies / China Currency Yuan
Jason Simpkins writes: By allowing the yuan to appreciate, China at least temporarily placated foreign trade partners that had expressed concern about the currency's value. However, the decision has done little to quell criticism from many U.S. policymakers and trade groups who are angry that the Obama administration refuses to brand China a "currency manipulator."
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Wednesday, July 07, 2010
Stronger Chinese Yuan Investor Profit Opportunities / Currencies / China Currency Yuan
You probably had some Fourth of July celebrations on your mind last Friday, but there were some important developments for anybody invested in or thinking about getting into the Chinese stock market.
The Chinese yuan rose to a modern-era high against the U.S. dollar last week after the People’s Bank of China set the dollar-yuan exchange rate at 6.7720 yuan per dollar, a record low since China permitted its currency to trade against other foreign currencies in 1980.
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Tuesday, June 22, 2010
What if the Chinese Let the Renminbi Float and Nothing Much Happened? / Currencies / China Currency Yuan
The People's Bank of China (PBOC) announced Saturday night that it would gradually relax the peg between the renminbi and a basket of currencies (primarily the U.S. dollar). This is the resumption of a policy the PBOC had initiated in mid 2005 and suspended in mid 2008. Although there are political motivations for the resumption of a controlled renminbi float - to deflect scapegoating at the upcoming Toronto G-20 confab and to get Senator Schumer off the backs of Chinese officials - there is a domestic economic motivation as well.
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Monday, June 21, 2010
Implications of Chinese Yuan Appreciation / Currencies / China Currency Yuan
Axel Merk and Kieran Osborne write: Recently, there has been a lot of news and evidence supporting the likelihood of the Chinese authorities allowing the Chinese currency, the yuan or renminbi (CNY), to trade within a wider trading band.
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Monday, June 21, 2010
Why New China Flexibility of the Yuan Will Not Mean its Appreciation, Nor Gold's Fall / Currencies / China Currency Yuan
With China dropping the 'peg' to the U.S. $, the financial world is expecting it to appreciate up to 30% over time. But we don't expect this at all. China has interests and will do no-one favors unless they are in China's interests. There are some who say it is in China's interests as they may well need to cap rising inflation or cheapen imports. More expensive Chinese exports can still effectively penetrate world markets? But China is a very different economy to any in the West and economic rules that apply to the West have to be modified in the East. So, what will happen to the Yuan now?"
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Monday, June 21, 2010
China Yuan Currency Climbs Most in 20 Months / Currencies / China Currency Yuan
Stock and commodities futures are up headed into Monday's trading on news that China has "unpegged" the Yuan. Please consider Yuan Climbs Most in 20 Months After China Signals End to Peg.
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Monday, June 21, 2010
Chinese Yuan Bent But Not Bowed, Trade War Still On / Currencies / China Currency Yuan
The currency issue has been a constant tension in relations between the United States and China. Many analysts had expected the Chinese central bank to announce a one-off revaluation in the yuan to appease critics of the exchange rate policy.
However, on Sunday, the People's Bank of China (PBOC) has ruled out the one-off revaluation that US politicians had sought. This was seen as a largely political move to deflect criticism of its fixed exchange rate ahead of the G20 meeting next week.
Sunday, June 20, 2010
China Announces Yuan Exchange Rate Flexibility / Currencies / China Currency Yuan
So China has just announced that it will "Further Reform the RMB Exchange Rate Regime and Enhance the RMB Exchange Rate Flexibility". See the full statement here.
Saturday, June 19, 2010
China Plays Obama like Violin on Yuan Currency Exchange Rate / Politics / China Currency Yuan
You have to hand it to China for the way it played Obama like a violin. On Thursday and Friday China Warned Against Finger-Pointing while announcing the "yuan exchange rate of no concern to others" setting a confrontational tone for the G-20.
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