Q&A: China’s yuan and a potential global currency war
9 years, 7 months ago

Q&A: China’s yuan and a potential global currency war

Al Jazeera  

After China pushed down the value of its yuan on Tuesday, the government assuaged fears of an ensuing currency war by saying that the drop was a “one-off”. Rajiv Biswas: China’s decision to devalue the yuan against the US dollar reflects concerns about the weak performance of the Chinese export sector this year… The sector has faced a perfect storm of sluggish global demand for its exports and eroding competitiveness due to rising Chinese manufacturing wages, as well as the depreciation of the euro, yen, and many other emerging markets’ currencies against the US dollar this year. Biswas: The Chinese yuan devaluations have created turmoil in currency markets, with many other emerging markets’ currencies also depreciating against the US dollar following the yuan devaluations. Biswas: The depreciation of the euro, yen and many emerging markets’ currencies against the US dollar over the last year had put pressure of China to also devalue its currency against the US dollar. Biswas: The US dollar has already appreciated significantly against many of the currencies of its key trading partners, including the euro and the yen, as well as many emerging markets’ currencies.

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History of this topic

Yuan slumps on trade-war anxiety; yen jumps
1 month, 3 weeks ago

Yuan slumps on trade-war anxiety; yen jumps

Live Mint  

* Onshore yuan falls following return from extended break * Yen rises on upbeat Japanese wage gain * Dollar on the back foot, giving respite to peers By Rae Wee SINGAPORE, Feb 5 - The yuan sank on Wednesday as a new Sino-U.S. trade war shook Chinese markets returning from an extended Lunar New Year break, while the yen jumped …

China faces harsh dilemma as yuan comes under pressure
2 months, 2 weeks ago

China faces harsh dilemma as yuan comes under pressure

Live Mint  

China is walking a tightrope on its currency. Economic fundamentals suggest a weaker yuan, but the specter of capital outflows still haunts Beijing, making it wary of any sharp moves in the currency. The yuan has made a small but symbolic move lately, with Beijing allowing it to slide past the 7.3 level where state-owned banks had often stepped in …

Is China deliberately letting the yuan tank against the US dollar? What is Beijing's strategy?
2 months, 3 weeks ago

Is China deliberately letting the yuan tank against the US dollar? What is Beijing's strategy?

Firstpost  

The value of the yuan has tanked despite the central bank’s seemingly continued efforts to support the currency. With a weaker yuan, China’s exports are bound to become cheaper, making them more appealing to buyers The yuan has breached the 7.3 per dollar mark for the first time since 2023. China’s state-owned banks, a key player in maintaining currency stability, …

‘Let yuan fall’: China’s new mantra to counter Trump tariff as Xi battles to revive economy
3 months, 2 weeks ago

‘Let yuan fall’: China’s new mantra to counter Trump tariff as Xi battles to revive economy

Firstpost  

China is considering allowing its currency yuan to weaken in 2025 as the country braces for higher US trade tariffs as Donald Trump returns to the White House on January 20, 2025 As per analysts, the yuan may fall to 7.37 per dollar by the end of 2025, though a key factor will be how much Donald Trump raises tariffs …

China’s Weaker Yuan Sends Ripples Across Emerging Market Currencies
3 months, 2 weeks ago

China’s Weaker Yuan Sends Ripples Across Emerging Market Currencies

Live Mint  

Emerging-market currencies dropped Wednesday, with an index of developing-nation currencies heading for its steepest one-day loss in a week and a half. The depreciation supports Chinese exporters but raises risks of capital outflows and financial instability, challenges that could ripple through emerging markets tied to Chinese demand, as cheaper Chinese undercut competitors in other developing economies. The correlation between China’s …

Asian Stocks Gain on China Recovery, Weaker Dollar: Markets Wrap
4 months, 2 weeks ago

Asian Stocks Gain on China Recovery, Weaker Dollar: Markets Wrap

Live Mint  

Asian equities climbed, aided by signs of a stabilization in China’s economy and a retreat in the dollar. “The strength of the dollar has obviously taken away some of the returns from emerging markets local currency bonds, but we think the more attractive opportunity at this point is in the hard currency aspect of emerging markets,” Niaz said, referring to …

Rupee slides, still better than other currencies: Is India, China growth threatening dollar?
4 months, 3 weeks ago

Rupee slides, still better than other currencies: Is India, China growth threatening dollar?

India Today  

The Indian rupee is down, but so are other major currencies against the US dollar. Despite its downward trajectory, however, the rupee is still well-placed against major currencies such as the Brazilian real, the Russian ruble, the Japanese yen, and the Canadian dollar. The Indian rupee has slid by 1.1 per cent against the dollar since January 1. In contrast, …

After war with yuan bears, China keen to avert sharp gains
7 months ago

After war with yuan bears, China keen to avert sharp gains

The Hindu  

Having spent all year putting a floor under the tumbling yuan, China’s central bank is suddenly faced with the opposite problem and is turning to subtle ways to stop the currency from appreciating sharply. “While the pressure on the yuan may ease as the Fed may finally cut interest rates, there may be sudden and significant movements in capital flows.” …

China’s Yuan Is Quietly Gaining Ground
1 year, 3 months ago

China’s Yuan Is Quietly Gaining Ground

Live Mint  

The yuan’s status as a global currency still faces a huge obstacle in the form of China’s own capital controls. Even so, rising willingness to conduct trade in yuan could help insulate China’s economy, at least to an extent, in the event sanctions were imposed in a hypothetical future conflict with the West. Sanctions would still be hugely disruptive to …

America's political dysfunction, conflict with China pushing dedollarisation: JP Morgan
1 year, 8 months ago

America's political dysfunction, conflict with China pushing dedollarisation: JP Morgan

Firstpost  

Recent years have witnessed acceleration in trend towards de-dollarization with countries looking out for alternatives to reduce their reliance on the dollar For long, the dollar has been the world’s reserve currency, but its dominance is now under threat as more countries are joining the growing list of nations that want to shun the US currency and trade in their …

US responsible for de-dollarization, says IMF
1 year, 9 months ago

US responsible for de-dollarization, says IMF

Firstpost  

Washington’s policies and actions have compelled most countries across the world to seek alternatives to US dollar, said International Monetary Fund’s executive director for Russia, Aleksei Mozhin. ‘Process of de-dollarization has begun’ “It’s clear that it will not happen at once, but the process has begun,” Mozhin said, anticipating a steady decline in the dominance of dollar. “I think our …

In dire straits, China selling dollars offshore to save tanking yuan
1 year, 9 months ago

In dire straits, China selling dollars offshore to save tanking yuan

Firstpost  

China’s major state-owned banks Tuesday got down to selling dollars in offshore foreign exchanges, said a Reuters report, ostensibly in a bid to slow the nosediving yuan. The Reuters report cited two sources who said the dollar selling appeared to have been triggered by yuan sliding below the “psychologically important” 7.25 per dollar level. The yuan’s value onshore hit a …

Is the dollar getting dethroned? Not quite
1 year, 10 months ago

Is the dollar getting dethroned? Not quite

Hindustan Times  

There are some keywords that are periodically tossed around to indicate a looming crisis. Two, the yuan as a reserve currency – or the so-called yuannabe narrative – will not save the world which is still not ready to hand over the keys to a communist dictatorship. In fact, as the US moves towards another debt ceiling hike drama in …

De-Dollarisation Trend: Why It Matters And What Investors Should Know?
1 year, 11 months ago

De-Dollarisation Trend: Why It Matters And What Investors Should Know?

News 18  

Argentina on Wednesday April 26, announced that it will pay in yuan for Chinese imports instead of the US dollar. As the world debates the merits and demerits of de-dollarisation, let us look at what the term means, and its possible impacts on the world economy. De-dollarisation basically means reducing the dependence on the US dollar as a medium of …

Dollar fast losing dominance as global reserve currency as rupee, yuan rise
1 year, 11 months ago

Dollar fast losing dominance as global reserve currency as rupee, yuan rise

Firstpost  

Dollar’s share of global reserves has declined by 11 per cent since 2016 on this adjusted basis, a report by Eurizon SLJ Asset Management said New Delhi: Dollar, which has been ruling as the global reserve currency, is gradually losing its dominance especially after the onset of the Russia-Ukraine war last year. The US currency saw a massive decline of …

Can Chinese yuan drub US dollar to become the most dominant currency?
1 year, 11 months ago

Can Chinese yuan drub US dollar to become the most dominant currency?

Firstpost  

The rising influence of China’s currency yuan has prompted questions about whether it can oust the US dollar as the world’s dominant currency. Yuan topples US dollar in Russia Russia turned to China’s currency amid Western sanctions following Moscow’s invasion of Ukraine last February. However, the US dollar still commanded Brazil’s total foreign reserves last year, with 80.42 per cent …

Column: How the U.S. can turn China from a foe into a friendly competitor
2 years, 1 month ago

Column: How the U.S. can turn China from a foe into a friendly competitor

LA Times  

The House Select Committee on the Strategic Competition Between the United States and the Chinese Communist Party is scheduled to hold its first hearing Tuesday. While nearly all the players say we need to take the China threat seriously, what they mean by “the China threat” varies wildly. That’s because the “China threat” serves as a kind of all-purpose justification …

US dollar fast losing out to the Chinese yuan, says 'Doctor Doom' Nouriel Roubini
2 years, 1 month ago

US dollar fast losing out to the Chinese yuan, says 'Doctor Doom' Nouriel Roubini

Firstpost  

Nouriel Roubini said even though there is no currency yet which is capable of knocking the US dollar off its pedestal, but the greenback is rapidly losing its competitive advantage to the Chinese yuan New York: The US dollar is quickly losing its competitive edge and its status as the world’s main reserve currency is in jeopardy, said economist Nouriel …

Indranil Banerjie | Dollar’s rise sets off crisis of collapsing currencies
2 years, 4 months ago

Indranil Banerjie | Dollar’s rise sets off crisis of collapsing currencies

Deccan Chronicle  

A currency storm is wreaking havoc across the globe. Even the mighty Chinese currency has been battered, falling 15 per cent this year to 7.25 yuan per US dollar by end October, which is its lowest rate since January 2008, the time of the global financial crisis. Virtually all Asian currencies have been hit: India by 10.9 per cent, Bangladesh …

China\'s yuan hits 15-year low after Xi extends rule
2 years, 5 months ago

China\'s yuan hits 15-year low after Xi extends rule

Deccan Chronicle  

BEIJING: China's yuan hit a 15-year low against the US dollar on Tuesday, with investors spooked after President Xi Jinping gained complete dominance over the Communist Party at a key meeting last week. The offshore yuan -- which is circulated outside mainland China and is more freely traded than currency in the domestic market -- fell to 7.3735 against the …

China’s yuan sinks to record low against the dollar
2 years, 6 months ago

China’s yuan sinks to record low against the dollar

Al Jazeera  

Chinese currency’s slide comes despite central bank taking steps to prop up its value. China’s yuan has tumbled to a record low against the US dollar in offshore trading, joining a host of currencies experiencing sharp declines against the greenback. The offshore yuan, which is traded outside mainland China, fell to 7.2386 against the dollar on Wednesday, the Bloomberg news …

Dollar’s rise spells trouble for global economies
2 years, 6 months ago

Dollar’s rise spells trouble for global economies

Live Mint  

The U.S. dollar is experiencing a once-in-a-generation rally. “It’s not going to be contained.” A stronger dollar makes the debts that emerging-market governments and companies have taken out in U.S. dollars more expensive to pay back. “Whether the ECB turns more hawkish, whether there’s some improvement on the economic outlook, whatever happens, it’s generally offset by further dollar strength,” he …

China says it has no plans to replace dollar with digital yuan
3 years, 11 months ago

China says it has no plans to replace dollar with digital yuan

Al Jazeera  

China’s central bank is testing a digital version of its currency across the country, but says it is for domestic use. People’s Bank of China Deputy Governor Li Bo said the goal for internationalizing its currency is not to replace the dollar, and the efforts to create a digital yuan are aimed at domestic use. “I think our goal is …

Is US dollar’s reign as world’s reserve currency is under threat?
4 years, 7 months ago

Is US dollar’s reign as world’s reserve currency is under threat?

Live Mint  

The dollar’s rise to become the dominant currency started after World War I, but it was only definitively confirmed by the Bretton Woods accord reached in 1944. Wider use of SDRs as a reserve currency would reduce developing economies’ need for foreign exchange reserves as “self-insurance.” SDRs became a go-to reserve asset when the dollar fell 34% vs. the yen …

US lifts China's currency manipulator status as initial trade deal nears
5 years, 2 months ago

US lifts China's currency manipulator status as initial trade deal nears

ABC  

The Trump administration is dropping its designation of China as a currency manipulator in advance of the Wednesday signing of phase one of the US-China trade agreement. Key points: The US had designated China a currency manipulator in August, for the first time in a quarter of a century US Treasury secretary Steven Mnuchin says that designation is being dropped …

China is saving stimulus for trade war winter as yuan weakens
5 years, 7 months ago

China is saving stimulus for trade war winter as yuan weakens

Live Mint  

Chinese policy makers are holding back from rolling out the big guns of monetary stimulus, keeping options in reserve as the trade standoff with the U.S. risks morphing into a global currency war. Officials are sticking to a cautious monetary strategy even after tensions with the U.S. worsened, with President Donald Trump’s accusations of Beijing’s currency manipulation adding sensitivity to …

Explained: Why has the U.S. accused China of deliberately weakening the yuan?
5 years, 7 months ago

Explained: Why has the U.S. accused China of deliberately weakening the yuan?

The Hindu  

The story so far: On Monday, the United States designated China as a “currency manipulator”. The move came immediately after the People’s Bank of China, the Chinese central bank, let the yuan weaken past the psychologically significant CNY7 to the dollar mark. The present devaluation of the currency has gained significance in light of the ongoing trade war between the …

Opinion | The Yuan’s devaluation has made investors nervous
5 years, 7 months ago

Opinion | The Yuan’s devaluation has made investors nervous

Live Mint  

Earlier this week, the Chinese yuan broke the seven-to-one parity against the dollar for the first time since 2008. The People’s Bank of China, which had maintained this level consistently till now, deliberately moved to devalue the Chinese currency after the latest tariff threats issued by US President Donald Trump. The act marks a shift of focus in the current …

China is trying to weaken its currency without freaking markets
5 years, 7 months ago

China is trying to weaken its currency without freaking markets

CNN  

Hong Kong CNN Business — All eyes have been on China this week after it allowed a surprise devaluation of its currency on Monday, sending global markets into a tailspin. In fact, Thursday’s yuan rate fix shows that the country is comfortable with its “new normal,” said Ken Cheung Kin Tai, chief foreign exchange strategist for Asia at Mizuho Bank …

Trade war: China may never fire its $1.1 trillion weapon
5 years, 7 months ago

Trade war: China may never fire its $1.1 trillion weapon

CNN  

London CNN Business — In the US-China trade war, it’s been a week of rapid escalation. “It’s likely not the most effective tool available,” said Brad Setser, a senior fellow at the Council on Foreign Relations and former US Treasury economist. You can think of it as ‘resilience comes first.’ “ If China weaponizes Treasury holdings, that sends a very …

ASX recovers after China stabilises currency, but dragged down by disappointing CBA result
5 years, 7 months ago

ASX recovers after China stabilises currency, but dragged down by disappointing CBA result

ABC  

The Australian share market has recovered slightly from its heavy bleeding, which led to $90 billion being wiped off the ASX boards earlier this week. Key points: Worsening US-China trade relations triggered a global market sell-off at the start of the week Stocks have recovered slightly after China intervened late yesterday to strengthen the yuan Australia's market lost $90 billion …

Trump’s unrelenting global trade wars have sealed our financial fate
5 years, 7 months ago

Trump’s unrelenting global trade wars have sealed our financial fate

The Independent  

I keep a 1 yuan coin on my keyboard. The Chinese authorities’ response has been to allow the renminbi to drift lower – “manipulating” it, in US terms. Indeed, the yield on long-dated German government bonds has turned negative, meaning that you, the “depositor”, will actually get marginally less back in cash terms in three decades than you have lent …

US-China trade war intensifies: Donald Trump administration designates Beijing a currency manipulator
5 years, 7 months ago

US-China trade war intensifies: Donald Trump administration designates Beijing a currency manipulator

Firstpost  

The Trump administration’s dramatic move against China hastened the risk aversion seen in global markets this week Tokyo: Global stocks extended their already substantial losses and the offshore yuan hit an all-time low on Tuesday after Washington designated Beijing a currency manipulator in a rapid escalation of the US-China trade war. “Following the latest development in the US-China trade war, …

China isn’t the economic manipulator in this trade war. Trump is
5 years, 7 months ago

China isn’t the economic manipulator in this trade war. Trump is

CNN  

Editor’s Note: Jeffrey Sachs is a professor and director of the Center for Sustainable Development at Columbia University. There was nothing magicalabout the 7.0 threshold except for the fact that China had implicitly resisted its currency weakening beyond 7.0 in the interest of closing a trade deal with the United States. On the second test, China’s current account surplus is …

Trump declares China a currency manipulator, what does it mean for Australia and the world?
5 years, 7 months ago

Trump declares China a currency manipulator, what does it mean for Australia and the world?

ABC  

Well, that escalated quickly. Key points: Global markets are being smashed after a rapid escalation in hostilities between the US and China over trade The US declared China a 'currency manipulator' after the yuan suddenly fell in response to a new round of US tariffs The immediate impact has seen $90b wiped off the ASX's value in two days and …

Australian stock market slumps after US-China trade war prompts Wall Street plunge
5 years, 7 months ago

Australian stock market slumps after US-China trade war prompts Wall Street plunge

ABC  

Australian shares have lost around $90 billion in value over two days after a sharp escalation in the US-China trade war saw Wall Street suffer its worst day this year. Key points: The All Ordinaries index shed around $57 billion in value during early trade, while the ASX 200 lost as much as 2.9pc The US has declared China a …

Yuan fall: The United States and China may be headed for a currency war
5 years, 7 months ago

Yuan fall: The United States and China may be headed for a currency war

CNN  

London CNN Business — China may have just fired the opening shot of a currency war with the United States. The Chinese central bank said the move mostly reflected market concern about “trade protectionism and new tariffs on China.” President Donald Trump escalated the trade war last week by announcing that the United States would tax just about every Chinese …

Trump labels China a currency manipulator as trade war escalates
5 years, 7 months ago

Trump labels China a currency manipulator as trade war escalates

CNN  

Washington CNN — President Donald Trump’s trade war with China amplified one step further on Monday after his Treasury Department formally labeled the country’s second largest trading partner a “currency manipulator,” marking a tense standoff that risks weakening the entire global economy. The escalating rift boiled over on Monday as Trump fulfilled his threat to fight back against China’s decision …

Forget the trade war, China’s economy has other big problems
6 years, 4 months ago

Forget the trade war, China’s economy has other big problems

CNN  

Hong Kong CNN Business — China is riding out the trade war so far but its economic troubles run deep and could escalate rapidly if US tariffs really start to bite. “China’s growth has been highly credit intensive,” said Gerard Burg, Sydney-based senior economist at National Australia Bank. Beijing appears to have again started dipping into its massive war chest …

Chinese yuan sinks to its lowest level in a decade. What’s next?
6 years, 5 months ago

Chinese yuan sinks to its lowest level in a decade. What’s next?

CNN  

Hong Kong CNN Business — China’s battered currency is trading at its lowest point since the global financial crisis, leaving investors asking how much farther it might fall. In 2015 and 2016, huge sums of money flooded out of China as investors bet the yuan would keep falling, forcing Beijing to spend hundreds of billions of dollars to prop up …

China currency: Beijing says it will fight to defend yuan
6 years, 5 months ago

China currency: Beijing says it will fight to defend yuan

CNN  

Hong Kong CNN Business — China is warning speculators betting against its currency to prepare for a fight. The currency has now slumped more than 9% against the dollar since January, coming under pressure from the US Federal Reserve’s moves to hike interest rates and fears about China’s slowing economy. It will be reluctant to let its currency slip much …

US Treasury chief warns China against currency devaluations
6 years, 5 months ago

US Treasury chief warns China against currency devaluations

India TV News  

US Treasury Secretary Steven Mnuchin has warned China against its currency devaluation. "Several factors are responsible for the recent fall in the Chinese Yuan, or renminbi, including economic issues in China", Mnuchin told Financial Times ahead of meetings in Bali, Indonesia of the IMF, World Bank and G20. "As we look at trade issues there is no question that we …

Watch these markets as Trump’s $200 billion trade salvo nears
6 years, 6 months ago

Watch these markets as Trump’s $200 billion trade salvo nears

Live Mint  

New York: The elephant in the room for markets this week is the trade war with China, and investors are waiting to see which way it might step. President Donald Trump is said to be ready to push ahead with tariffs on $200 billion of Chinese imports after the deadline for public input ends Thursday, a move that could rattle …

Global markets nervous ahead of US-China tariff showdown
6 years, 6 months ago

Global markets nervous ahead of US-China tariff showdown

Live Mint  

Tokyo: Stock markets in Asia tracked their global peers lower while the safe-haven dollar hovered near a two-week high on Wednesday as heightened worries over international trade conflicts curbed investor appetite for riskier assets. “Then there is the U.S.-China trade issue, in addition to turbulence in the emerging market currencies that the markets have to worry about,” Ichikawa at Sumitomo …

Markets yet to be swamped by trade fears despite ripples becoming waves
6 years, 8 months ago

Markets yet to be swamped by trade fears despite ripples becoming waves

ABC  

No sooner had the US and China put in place identical hostile tariff measures than the buy orders on global markets flooded in. This week in finance: NAB business survey and Westpac consumer survey New home loans Chinese inflation and trade balance China's Shanghai composite put on 3 per cent on Friday, Wall Street's S&P500 rose nearly 1 per cent. …

China might look at relaxing capital curbs... but slowly, gently
7 years, 1 month ago

China might look at relaxing capital curbs... but slowly, gently

Live Mint  

Beijing: In the fraught history of Chinese currency policy, a new chapter could be looming this year as authorities consider the consequences of a yuan that’s testing its strongest levels since mid-2015. After successfully shutting off potentially destabilizing capital outflows and putting a floor under the yuan, policy makers may now have the luxury of looking at relaxing some of …

China has no intention of devaluing yuan, regulator says
7 years, 8 months ago

China has no intention of devaluing yuan, regulator says

Live Mint  

Beijing: China has no intention of devaluing its currency, the yuan, to boost its competitiveness, said the head of the country’s foreign exchange regulator. There is also no necessity for China to devalue its currency, Pan Gongsheng, head of the State Administration of Foreign Exchange, wrote in state magazine Qiu Shi. Despite the yuan’s strength, China’s trade balance has stayed …

Dropping currency spat produces mutual gains for China, US
7 years, 11 months ago

Dropping currency spat produces mutual gains for China, US

China Daily  

A worker counts Chinese currency Renminbi at a bank in Linyi, East China's Shandong province, Aug 11, 2015. While it is a sharp reversal from the rhetoric of US President Donald Trump's campaign trail, nearly three months into his presidency, this different tone chimes with a more realistic view of China's currency. Over the last decade, China's effective exchange rate …

Dropping currency spat produces mutual gains for China, US
7 years, 11 months ago

Dropping currency spat produces mutual gains for China, US

China Daily  

A worker counts Chinese currency Renminbi at a bank in Linyi, East China's Shandong province, Aug 11, 2015. While it is a sharp reversal from the rhetoric of US President Donald Trump's campaign trail, nearly three months into his presidency, this different tone chimes with a more realistic view of China's currency. Over the last decade, China's effective exchange rate …

China welcomes Trump's change of heart on currency
7 years, 11 months ago

China welcomes Trump's change of heart on currency

China Daily  

China is willing to develop more balanced economic and trade ties with the United States, a Foreign Ministry spokesman said on Thursday in response to US President Donald Trump's saying he no longer regards China as a currency manipulator. Lu said that during the first meeting between President Xi Jinping and Trump in Florida last week, the two leaders had …

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