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China's onshore yuan has recovered its losses for the year, reaching a level unseen since December. This is due to expectations that capital will flow back into the country, as the Federal Reserve is anticipated to begin easing its policies next month. The yuan's strength is also supported by predictions of a weak dollar, as potential interest rate cuts by the Fed may prompt companies to repatriate their foreign-exchange holdings. This development is favorable for the People's Bank of China, as it allows for more flexibility in monetary policy without concerns about a declining currency and capital outflows. Additionally, the unwinding of a popular trading strategy involving borrowing the yuan cheaply and selling it against a higher-yielding exchange rate has further boosted the Chinese currency. There is potential for further appreciation if exporters begin to exhibit herd behavior, with a key level to watch being 7.10 yuan per dollar. [Extracted from the article]

China's central bank, the People's Bank of China (PBOC), has shown support for the yuan in an effort to manage its decline. The PBOC set the daily reference rate for the currency slightly weaker than the previous day, signaling its desire to control the decline. Chinese state-owned banks also increased support for the yuan by selling dollars in the onshore market. The yuan's decline is attributed to broad strength in the dollar and pessimism about the Chinese economy. The PBOC aims to maintain stability and prevent further losses, while also deterring markets from betting against the yuan. [Extracted from the article]

China's central bank, the People's Bank of China (PBOC), has been using an artificially strong reference exchange rate to support its weak currency. However, this intervention has caused unintended problems for Chinese companies. Many companies have been basing their foreign exchange accounting on the PBOC's daily yuan fixing, which has been consistently stronger than the spot rate since June. This has resulted in paper losses for these companies, prompting some to consider using the spot rate instead. While this practice has caused headaches for Chinese firms, it is unlikely to significantly impact the PBOC's management of the currency. [Extracted from the article]

China Supports Yuan Against 23 Other Currencies Based on the euro-dollar rate of 1.076 as of 9 a.m., it suggests the dollar-yuan rate used by the PBOC was 7.2415 - which is nearly 400 pips, or about 0.5%, stronger than the 7.2808 average expected from a survey of analysts and traders. The greenback's 20% weight in the CFETS RMB Index suggests the dollar-yuan reference rate alone won't be enough to support the trade-weighted basket, indicating that the PBOC may have implemented some adjustments to its fixings in non-dollar rates. [Extracted from the article]

(Bloomberg) -- A record low in the cost of borrowing yuan by at least one measure is heaping pressure on the embattled currency, which is weakening toward a 16-year nadir against the dollar. The offshore yuan hovered near its seven-month low at 7.2656 on Friday, while 12-month dollar-yuan forward points dropped to minus 2,175. [Extracted from the article]

(Bloomberg) -- Chinese regulators are stepping up scrutiny of currency trading and cross-border capital flows, according to people familiar with the matter, as the yuan slides to the weakest level in seven months. Back in May, the PBOC and SAFE said they will strengthen market guidance and act against one-way currency bets, spurring a temporary bounce in the yuan. [Extracted from the article]

The article discusses the report "Myanmar Financial Sector Reforms," published by the World Bank on July 8, 2022. Cited are the challenges and destabilization faced by the country's financial sector in the wake of the COVID-19 pandemic and the 2021 military coup, the loss of public confidence in the financial sector over the past decade, and the extent to which financial institutions have been able to meet credit needs, such as further moves towards a cash-based economy.

Thanks to adequate forex reserves, the RMB exchange rate achieved greater flexibility in 2022. An improved RMB exchange rate regime and higher flexibility of the yuan's exchange rate may help to release external pressures. Last year, China withstood severe tests from renminbi (RMB) exchange rate fluctuations and from the international foreign trade market, which have strengthened its ability to maintain steady economic growth this year. [Extracted from the article]

Dollar strength is primarily related to US economic fundamentals and different paces of tightening between the Fed and other central banks, a Treasury official said in a telephone briefing with reporters on the semiannual release. (Bloomberg) -- The US Treasury Department signaled that some recent interventions by trading partners in the foreign-exchange market can be justified, and acknowledged that a surging dollar is mainly being driven by developments in the American economy. The Treasury official also said that the US anticipates that dollar strength won't continue to persist, as Fed tightening reaches a peak and other central banks catch up. [Extracted from the article]

(Bloomberg) -- The Treasury refrained from designating any US trading partner as a manipulator of its exchange rate for commercial purposes, and signaled acceptance of market intervention in some cases, while continuing to criticize China for its lack of transparency. "China provides very limited transparency regarding key features of its exchange rate mechanism, including the policy objectives of its exchange rate management regime and its activities in the offshore RMB market", the Treasury said, referring to the renminbi, the official term for China's currency. [Extracted from the article]

(Bloomberg) -- China slashed the amount of foreign-exchange deposits banks need to set aside as reserves for the second time this year to boost the yuan after the currency hit a fresh two-year low. "The PBOC sent a strong signal to defend the yuan exchange rate", said Zhiwei Zhang, chief economist at Pinpoint Asset Management Ltd. "This action shows the PBOC is not willing to tolerate a sharp yuan depreciation against the US dollar", he said. [Extracted from the article]

The foreign exchange market will likely remain stable due to China's resilient economic fundamentals, sustaining trade surplus and foreign direct investment inflows, low foreign debt risks and the increasing flexibility of the yuan, she said. (Bloomberg) -- China is able to accommodate the impact of the Federal Reserve's rate hikes, a senior foreign exchange official said, downplaying concerns about the yuan's weakness and capital outflows. [Extracted from the article]

(Bloomberg) -- The People's Bank of China's policy divergence from the Federal Reserve won't constrain its ability to lower interest rates again if the economy needs it. It's an outlook that runs contrary to many market economists, who see a narrow window for the PBOC to ease, perhaps only as long as this quarter, as the Fed begins to raise interest rates. [Extracted from the article]

(Bloomberg) -- The People's Bank of China's policy divergence from the Federal Reserve won't constrain its ability to lower interest rates again if the economy needs it. It's an outlook that runs contrary to many market economists, who see a narrow window for the PBOC to ease, perhaps only as long as this quarter, as the Fed begins to raise interest rates. [Extracted from the article]

Read More: China Seen Cutting Rates Once More BeforeJuly, Analysts Say Some say the PBOC could cut deposit rates, increaseforeign exchange purchases or turn to its relendingprograms. Deposit Rate The PBOC hasn't changed the benchmark deposit rate, at1.5% currently, since 2015, when it started to liberalizebank deposit rates. [Extracted from the article]

Read More: China Seen Cutting Rates Once More BeforeJuly, Analysts Say Some say the PBOC could cut deposit rates, increaseforeign exchange purchases or turn to its relendingprograms. Deposit Rate The PBOC hasn't changed the benchmark deposit rate, at1.5% currently, since 2015, when it started to liberalizebank deposit rates. [Extracted from the article]

Read More: China Seen Cutting Rates Once More BeforeJuly, Analysts Say Some say the PBOC could cut deposit rates, increaseforeign exchange purchases or turn to its relendingprograms. Deposit Rate The PBOC hasn't changed the benchmark deposit rate, at1.5% currently, since 2015, when it started to liberalizebank deposit rates. [Extracted from the article]

(Bloomberg) -- An organization formed by key participants in China's currency market urged banks to limit speculative foreign-exchange trading after the yuan climbed to a six-year high versus peers. China should deepen market-oriented exchange-rate reform, which includes making the yuan rate more flexible, the PBOC reiterated in its third-quarter policy implementation report released late Friday. [Extracted from the article]

"We need to admit that under the condition of yuan internationalization, we won't be able to control the exchange rate, and China's central bank has to let go of exchange-rate goals in the end", said Zhou. (Bloomberg) -- China has to give up its control over the currency's exchange rate eventually if it wants to achieve greater global use of the yuan, according to a central bank official. [Extracted from the article]

The elevatedrate is due to the stronger nominal yuan and a faster pace of increasein China's cost of living compared with other countries, according toDariusz Kowalczyk, chief China economist at Credit Agricole CIB. (Bloomberg) -- China's yuan is overvalued, and that could end up stoking globalinflation. [Extracted from the article]

(Bloomberg) -- China sought to allay fears it wants to topple the dollar as the world's main reserve currency as Beijing makes bigger strides in creating its own digital yuan. 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. [Extracted from the article]

The article argues that China will not revalue its exchange rate. In the wake of the Asian financial meltdown, experts predicted that China would devalue the renminbi. The title of my September 6, 1999 column, "Why China Won't Devalue," indicated my contrary call. And the right call it was. Led by the U.S., a chorus of countries is loudly demanding that China ratchet up the value of its currency against the dollar. Such a revaluation is intended to make Chinese exports more expensive and less competitive. The Chinese authorities refuse to alter the long-standing renminbi/dollar rate. In their eyes a fixed exchange rate, economic growth and stability are all tightly linked together. According to Nobelist Robert Mundell, a renminbi appreciation would cut foreign direct investment, cut China's growth rate, delay convertibility, increase bad loans, increase unemployment, cause deflation distress in rural areas, destabilize Southeast Asia, reward speculators, set in motion more revaluation pressures, weaken the external role of the renminbi and undermine China's compliance with World Trade Organization rules. On October 28, 2004 Beijing announced the establishment of the Mundell International University of Entrepreneurship.

The article discusses about shifts in policy toward the stock market and the renminbi exchange rate by China. It states the sudden shifts in policy has have sowed doubts rather than confidence in Beijing's management of the economy. It also presents views of Patrick Chovanec, chief strategist at Silvercrest Asset Management, related to the China's policy towards stock market.

Authorities may order state-owned firms to sell dollars Capital outflows from China accelerated in recent months as the yuan suffered its worst year of losses against the U.S. dollar since 1994, declining 6.5 percent. [Extracted from the article]

Focuses on the characteristics of the new renminbi regime, which came into effect after People's Bank of China (PBOC) announced a revaluation of the renminbi and a reform of the exchange rate regime. Reaction of the exchange rate to the renminbi announcement; Movements in trade-weighted reference indexes since 2001; Clarification of the new exchange rate regime and the components of China's "reference basket" by the Governor of the PBOC.