China will establish a renminbi clearing bank in the U.S. in the future, said Yi Gang, deputy governor of the People's Bank of China (PBOC) Tuesday.
Our attitude turns from being cautious to being optimistic since the mid-and-late May. Faced with adjustment in foreign market, decreasing central parity of RMB and plunge in domestic futures market, A-share market is relatively “persistent”.
The Chinese yuan is facing renewed devaluation pressure over expectations of a Fed rate hike, but a large renminbi devaluation is unlikely as China continues its market-oriented foreign exchange (FX) reform in a steady and stable manner.
St. Louis Federal Reserve President James Bullard said on Monday that global markets seemed to be well-prepared for possible rate hike in the United States amid growing expectations for the Federal Reserve's rate increase as early as in June.
The central parity rate of the Chinese currency renminbi, or the yuan, weakened 294 basis points on Monday to 6.5784 against the U.S. dollar, the lowest level since February 2011, according to the China Foreign Exchange Trading System.
Over the past week, discussion on whether a Fed rates hike in June is possible or not continued to heat up. At the same time, the Brexit vote also kicks in the nerves of the market. Foreign exchange traders are on the alert to the two possible black swarm events likely to happen in June. To the concern of market, the RMB continues to lose its strength as the U.S. dollar rallies.
A sharp rebound in the strength of Chinese currency the yuan has mitigated worries of further depreciation and shored up the credibility of an exchange rate system that is becoming more market-based.
More than 10 provincial-level regions have unveiled their social security cut programs, andlocal governments said lowering the percentage will not affect employee's welfare andbenefits, chinanews.com reported on its website.
The government will launch the sixth batch of inflation-linked iBonds, worth HK$10 billion, at the end of the month despite signs of subdued inflation for Hong Kong this year.
A U.S. Federal Reserve policymaker said on Tuesday that he will push for an interest rate hike in June or July and two others still see up to three rate increases this year, leaving the door open to a change in monetary policy relatively soon.
The U.S. Federal Reserve on Wednesday kept its benchmark short-term interest rate unchanged for a third meeting in a row while offering little clue on the timing of its next rate hike.
China has more wiggle room to maneuver macroeconomic policy and manage exchange rates as U.S. Federal Reserve signaled slower pace of interest rate hikes this year, U.S. experts say.
The U.S. Federal Reserve sent markets spinning on a new round of rate hike speculations Wednesday after the central bank left rates unchanged. Many analysts believe volatility could rise in financial markets hereafter.
South Korea's central bank on Thursday froze its benchmark interest rate at a record low of 1.5 percent, keeping a wait-and-see stance for 9 months in a row.
"London's RMB trading business is helping build stronger trade and business partnerships between the UK and China, which helps create jobs and growth in both countries, " said Michael Bloomberg, Founder of Bloomberg L.P.
China will keep the RMB exchange rate generally stable while continuing with reforms of exchange rate liberalization, according to a government work report to the national legislature annual session.
This is the second and final installment of a two-part series.The impact of the Bank of Japan’s recent decision to introduce a negative interest rate policy will likely extend to people with housing loans, with already-low interest rates nudged down even further.
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