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The article discusses an April 15, 2014 report from the U.S. Treasury Department that criticized a weakening of the Chinese yuan. Treasury wants market forces rather than government intervention to determine the value of the yuan, which it believes has further to rise. Additional information is presented on signs of slowing growth in China's economy.

The article discusses the impact of efforts by the Chinese government to reduce the flow of money into China from foreign investors by weakening the yuan. Exporting companies that have entered hedges designed to gain value as the yuan appreciates are losing money on those positions. Janet Chong of DBS Bank Ltd. says individual investors are looking for investments that aren't dependent on the yuan rising.

The article reports that a decline in the Chinese yuan relative to the U.S. dollar during early 2014 has been fostered by the People's Bank of China in an effort to ready the yuan for a greater dependence on market forces for its value. Unnamed sources say the bank is preparing to allow the yuan's value to fluctuate within a wider range, which in February 2014 was limited to a maximum 1% daily move in either direction.

The article discusses financial products designed to profit from a rise in the Chinese yuan that could instead produce losses if a decline in the yuan during February 2014 continues. Geoff Kendrick of financial firm Morgan Stanley estimates that below a certain level, each 0.1 yuan decline relative to the U.S. dollar will generate losses of some $500 million each month for holders of so-called target redemption forward contracts.

The article discusses a drop in the Chinese yuan versus the U.S. dollar that has traders reconsidering positions they have taken aimed at profiting from increases in the yuan. Between the middle of January and February, 2014 the yuan had fallen 1%. It is unclear to what degree the decline reflects China's economic conditions or its central-bank policy. Commentary on whether the yuan will continue to drop is presented from portfolio manager Edmund Harriss and economist Wang Tao.

The article reports that in October 2013, 8.7% of financing agreements between importers and exporters were denominated in the Chinese yuan, making it second to the U.S. dollar, which was used 81% of the time. It is noted that most of the trade finance using the yuan involved transactions between parties in Singapore and Hong Kong, China.

The article reports that a survey released in September 2013 by the Bank for International Settlements revealed that for the first time ever the Chinese yuan ranked among the top ten most-traded international currencies. In 2013 some $120 billion worth of yuan traded daily, triple the amount from three years prior. The Mexican peso and Turkish lira were among other currencies that saw rising popularity among traders.

The article looks at the economic impact of the People's Bank of China's (PBOC) decision to cap the yuan, China's currency, against the U.S. dollar. It states that the currency experienced fast appreciation ahead of the November 2012 U.S. presidential election and many investors think the yuan should be allowed to continue its rise. Ensuring financial stability and preventing economic turmoil and social unrest are considered reasons for the decision.

The article discusses increased volatility in China's yuan. Since September of 2012, foreign-currency traders have been pushing the yuan to the upper limit of a trading range set by the People's Bank of China (PBOC's) with greater frequency. The development is consistent with the PBOC's aim of letting market forces play a greater role in establishing the yuan's value.

The article discusses expectations among investors that the Chinese yuan will decline relative to the U.S. dollar. Through August 27 the yuan had fallen nearly 1% during 2012 amid a weakening Chinese economy, and some believe that trend will continue. Trading in a certain type of derivative in Hong Kong, China reflects a belief that the yuan will drop 1.4% within a 12-month period.

The article focuses on a currency agreement between China and Japan that will give the Chinese yuan a greater role in international trade. It states that Japanese Prime Minister Yoshihiko Noda announced a series of deals that promote direct yuan-yen trade rather than converting currencies initially to U.S. dollars. It mentions that the U.S. government has encouraged China to seek an enhanced role for the yuan in hopes that China would in turn revamp its financial sector policies.

The article reports that trading activity in the Chinese yuan reflect expectations on the part of investors that the People's Bank of China (PBOC) will let the yuan depreciate if demand for Chinese exports falls. Each day the PBOC sets a range within which the yuan is allowed to fluctuate, and for several consecutive days it has traded at the bottom of that range.

The article reports that some investors are betting against widely-held expectations of an appreciating Chinese yuan by purchasing put contracts that will gain value in the event the yuan declines. Cullen Thompson of investment company Bienville Capital Management LLC says bets against the yuan are attractive because their costs are so low when compared to their potential gains.

The article discusses the rapid growth of the Chinese yuan in China's foreign trade. During the first quarter of 2011 the yuan accounted for 7% of trade, dramatically higher than the year-ago quarter. Chinese officials have also been encouraging yuan trading in New York City and London, England as part of an effort to reduce reliance on the U.S. dollar.

The article reports that beginning in April, 2011 China will permit domestic trading in foreign-exchange options based on the yuan, the latest in a series of steps by the Chinese to give businesses greater means of hedging against a rise in the yuan, and to transform it into an important global currency.

The article reports that the U.S. will continue to urge China to let its currency appreciate. Several nations are concerned that China seeks to gain an advantage in exports by keeping its yuan artificially low relative to other currencies. The Chinese defended their yuan policy at a meeting of the International Monetary Fund, which failed to reach an accord on global currencies.

The article discusses competition among nations to promote their exports by lowering the value of their currencies relative to those of other countries. Japan is among at least six nations to have intervened in currency markets. The U.S. has accused China of boosting exports by keeping its yuan at unjustifiably low levels.

The article discusses the impact on Asian currencies of China's decision to allow the yuan to gradually appreciate. Following the announcement the South Korean won, Malaysian ringgit, and Australian dollar all gained against the U.S. dollar. Some analysts think the move will dissuade nations such as Thailand and Taiwan from persisting in efforts to suppress their own currencies.

The article discusses a potential short-term affect on U.S. Treasury notes of China's decision to allow the yuan to appreciate gradually against the U.S. dollar. China buys large quantities of Treasury securities, but a stronger yuan means it might need to buy fewer for the purpose of managing the yuan's value against the dollar. Consequently, interest rates on U.S. Treasury securities could rise.

The article offers information on betting against the Yuan by hedge funds managers due to the possibility of fall in the Chinese currency over the next three years. Topics discussed include selling off the bulk of its investments in stock by Hayman Capital Management, views of Kyle Bass, founder of Hayman Capital Management, on the same, and struggle of Chinese government to stabilize economy, dealing with indebted banking system, and focus on consumer-led growth.