Financial Regulatory Forum

Yuan internationalization takes off in Hong Kong

By Helen H. Chan (Hong Kong)

HONG KONG, Aug. 31 (Business Law Currents) – Yuan supporters both inside and outside of China are applauding anticipated regulatory changes in Hong Kong aimed at loosening capital controls over the renminbi, China’s national currency.

During his visit to Hong Kong recently, China’s Vice Premier Li Keqiang announced the formation of a spate of regulatory changes to the existing legal framework governing yuan-denominated trade and financial transactions between the special administrative region and mainland China. The 36 regulatory measures include amendments to existing items such as dim sum bond offerings, to the establishment of new mechanisms such as the pilot renminbi foreign direct investment initiative for offshore renminbi investors.

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COLUMN-China move like history in slow-motion: James Saft

(James Saft is a Reuters columnist. The opinions expressed are his own)

By Jim Saft

HUNTSVILLE, Ala., June 22 (Reuters) – Asked about 175 years after the fact what he made of the French Revolution, Chinese Premier Zhou Enlai is said to have thought for a moment and concluded: “It is too soon to tell.”

Tell a U.S Congressman up for reelection or an unemployed auto parts worker in Ohio the same thing about China’s new policy to give the yuan more latitude in how it trades against the dollar and, once you’ve picked yourself up off the ground, you’ll have a different answer.

China on Saturday said it would end the yuan’s currency peg to the dollar, allowing it to trade more freely. It also made clear that no big move was forthcoming, preparing the way instead for “gradual” appreciation.

ANALYSIS-China FX move only a minor aid to G20 rebalancing

By Brian Love

PARIS, June 21 (Reuters) – G20 leaders are likely to remain divided over how to balance the global economy at their summit in Canada this weekend, despite China’s decision to let its currency trade more freely.

Beijing’s abolition of the yuan’s 23-month-old peg against the U.S. dollar, announced on Saturday, may partially ease tensions at the meeting by clearing the way for appreciation of the Chinese currency in the long term.

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COLUMN – China’s export dominance must force US rethink: John Kemp

– John Kemp is a Reuters columnist. The views expressed are his own –

By John Kemp

LONDON, March 23 (Reuters) – Managing the rise of China’s vast economy and healing the U.S. trade deficit will require a new willingness and capacity to boost U.S. technology exports at affordable prices. More importantly it requires a new language from policymakers and a new mindset.

In a recent survey of American businesses, the proportion who felt unwelcome operating in China had risen sharply, amid tense stand offs involving Rio Tinto and Google. But with U.S. legislators in full flag-waving cry about China as a currency manipulator, is it really surprising China is looking to become more self-reliant?

Days of “special” yuan policy numbered – China central banker

By Zhou Xin and Benjamin Kang Lim

BEIJING, March 6 (Reuters) – China flagged on Saturday it will let the yuan resume its rise at some point as it unwinds the super-loose policies it has been pursuing to prop up the world’s third-largest economy.

China is under intense pressure from the United States and Europe to abandon the exchange rate peg it instituted of around 6.83 yuan per dollar since mid-2008 to preserve the competitiveness of its exporters during the international financial crisis.

Speaking during the annual session of China’s parliament, central bank governor Zhou Xiaochuan said Beijing would eventually have to drop this “special” yuan policy, one of a range of emergency measures taken to cushion the blow to growth.

China hints at resumption of yuan appreciation

By Zhou Xin and Jason Subler
BEIJING, Nov 11 (Reuters) – China sent its clearest signal yet that it was ready to allow yuan appreciation after an 18-month hiatus, saying on Wednesday it would consider major currencies, not just the dollar, in guiding the exchange rate.
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INTERVIEW – Obama says will raise currency with China

U.S. President Barack Obama answers questions during an interview with Reuters in the Oval Office at the White House in Washington, November 9, 2009.   REUTERS/Jim Young   (UNITED STATES POLITICS) By Caren Bohan and Alister Bull
WASHINGTON, Nov 9 (Reuters) – U.S. President Barack Obama said on Monday he plans to raise the issue of the yuan currency with Chinese officials when he meets with them in Beijing next week.

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EU central banker Noyer wants more balanced currency system

European Central Bank board of governors member and Bank of France Governor Christian Noyer, June 25, 2009. (File Photo)  REUTERS/Benoit Tessier ROUEN, France, Oct 13 (Reuters) – Having a more balanced world currency system is a good idea but Special Drawing Rights are not an instrument that can replace the U.S. dollar, ECB governing council member Christian Noyer said on Tuesday.

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G7 presses for stronger yuan, breaks no new ground

By Brian Love
ISTANBUL, Oct 3 (Reuters) – The Group of Seven rich nations urged China on Saturday to strengthen the yuan, but gave no sign of how it might overcome Chinese resistance to that suggestion or resolve other tensions over global currency rates.
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ANALYSIS-Emerging currency revaluation back on global table

By Mike Dolan
LONDON, Aug 5 (Reuters) – Western governments seem set on preventing currency appreciation snuffing out nascent economic recoveries, helping reignite bets on a devaluation of major currencies against those of the emerging economic giants.

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