The Chinese yuan gained on the US dollar today after China’s central bank tightened its monetary policy. The monetary tightening overshadowed the slowdown of growth of the manufacturing sector.
Chinese Yuan CNY
Central Bank: People's Bank of China
Public Debt to GDP Ratio, 2015: 16.7%
Trade Balance, 2015: $674 bln.
Inflation, 2015: 1.5%
Major industrial exporter
Factors of Weakness
Currency strengthening is opposed by the government
The Chinese yuan is the commonly used name for the currency of the People’s Republic of China. Officially, the modern Chinese currency is called the Renminbi, while the yuan is the primary unit of that currency. The currency is used in China, but not in Hong Kong and Macau. The first renminbi banknotes were introduced in December 1948. The yuan was pegged to the US dollar through the most part of its history, though since 2005 China allowed it to float in a narrow corridor and intends to widen the free-float range over time as a part of the transition from central planning to a free market economy. The usage of the yuan in international trade is limited by severe regulations that forbid the currency to be used in transactions with foreign entities. China showed willingness to ease these regulations as it strives to make the yuan new reserve currency. China made agreements with Russia, Vietnam, and Thailand that allow trade with those countries to be settled directly in renminbi.
Chinese Yuan News Archive
The Chinese yuan fell against the US dollar today after mixed economic data from China released over the trading session.
China has set a higher midpoint for the yuan in its peg to the US dollar today. Greenback has strengthened slightly against the yuan since the change, but this still marks an effort for a stronger yuan as the greenback heads a little lower.
The Chinese yuan strengthened against the US dollar today as China’s central bank allowed the currency to appreciate, though gains were rather limited.
For some time now, Chinese authorities were trying to stabilize the yuan that has been under heavy selling recently. By the looks of it, they had some success as the currency was relatively stable today despite yet another crash of the nation’s stock market.
The Chinese yuan fell against the US dollar today as China’s stock markets resumed their decline, reigniting fears about economic slowdown in the world’s second biggest economy that can hurt the global economy as well.
The Chinese yuan depreciated today, falling to the lowest level in five years, as the People’s Bank of China lowered its reference rate, prompting speculations among market participants that China is going to renew currency wars.
The Chinese yuan remained under pressure despite positive economic data from China. As most currencies, the yuan suffered from expectations of monetary tightening from the US Federal Reserve.
The Chinese yuan was little changed against the US dollar today after the International Monetary Fund decided yesterday to include the currency in its basket of currencies that make up the Special Drawing Right (SDR).
Many experts and policymakers are watching today for the announcement that the Chinese yuan (also called the renminbi) will be added to the IMF’s Special Drawing Rights basket.