Exchange Rates and Internationalization of RMB
[ News ] [
Papers ]
China Mulls Allowing
Malaysia Ringgit to Trade Onshore – Sources
(Wall Street Journal, Jul. 16, 2010) The move is
part of China's
long-term goal of making the yuan a major global currency. Last month, Beijing widened a pilot project for using yuan to settle
cross-border trade to cover 20 provinces and municipalities, from four cities
in Guangdong province and Shanghai previously.
China Buys Japanese Bonds at
Record Pace, Data Shows
(Bloomberg, Jul. 8, 2010) China bought a net $8.3
billion of Japanese bonds in May, doubling purchases for this year as it
heads for the biggest annual increase since at least 2005.
China Gives in to G20, Sets
Strong Yuan Rate
(AFP, Jun. 28, 2010) China set the strongest yuan
exchange rate in years on Monday after Beijing came under renewed pressure at
the Group of 20 summit over the weekend to let the currency appreciate.
China to Create More
Channels for Yuan Use, Central Bankers Say
(Bloomberg, Jun. 26, 2010) China must create more
channels for investors and companies to use the yuan if it wants to
internationalize the currency and put it on a par with the yen and the euro,
central bank officials and economists told a forum in Shanghai.
China Signals a Gradual Rise
of Currency
(New York Times, Jun. 20, 2010) China’s central bank announced that it would
allow greater flexibility in the value of the country’s currency, in the
clearest sign yet that China
will allow the renminbi to appreciate gradually against the dollar.
China Acts on Settle More
Deals in Yuan
(Wall Street Journal, Jun. 17, 2010) China's
government will expand a trial program for settling trade deals in yuan to
most of the country, state media reported, in an effort to accelerate the
internationalization of the Chinese currency after a slow start.
Geithner Testifies; U.S. and
China Continue Negotiations on Currency Policies (Washington Post, Jun. 11, 2010) Negotiation with China has
failed to produce a clear sense of when the country might change its
controversial currency policy, Treasury Secretary Timothy F. Geithner said.
China to Continue to
Steadily Advance Reform Related to RMB Exchange Rate (Xinhua, May 24, 2010) Chinese President Hu Jintao reiterated
that China will continue to steadily advance the reform of the formation
mechanism of the RMB exchange rate under the principle of independent
decision-making, controllability and gradual progress.
EU Steps Up Pressure for
Higher Yuan on Concerns about Recovery (Bloomberg, Apr. 17, 2010) The European Union added to pressure
on China to let its
currency rise on concerns that the value of the yuan threatens Europe’s economic recovery.
China Economy Grows 11.9%,
Pressuring Wen on Yuan Peg
(Bloomberg, Apr. 15, 2010) China’s economic
growth accelerated to the fastest pace in almost three years in the first
quarter, adding pressure on Premier Wen Jiabao to sever the yuan’s peg to the
dollar and raise interest rates.
Hu Tells Obama China Will
Follow Its Own Path on Yuan
(Bloomberg, Apr. 13, 2010) President Barack Obama
urged China to move toward a “more market-oriented exchange rate” and
President Hu Jintao told him the country wouldn’t yield to “external
pressure” in deciding when to adjust the yuan.
U.S. To Delay Chinese
Currency Report
(New York Times, Apr. 4, 2010) The Obama
administration said that it would delay a decision on whether to declare
China a currency manipulator, but it vowed to press Chinese leaders on the
politically charged issue.
China Says It Will Not
Adjust Exchange Rate
(New York Times, Mar. 25, 2010) Despite mounting
pressure in Congress for the Obama administration to declare China a currency
manipulator, the Chinese government is giving no indication that it will
change its exchange rate policy.
Hints of Divisions in China
about Yuan Policy
(Reuters, Mar. 19, 2010) A range of Chinese
officials have spoken about the controversial currency policy over the past
few weeks. Management of the yuan is shrouded in secrecy, but the comments
have exposed the outlines of different schools of thought in the government.
China Faces Important
Negotiation on Yuan: U.S.
(Reuters, Mar. 18, 2010) China faces important negotiations over its
exchange rate in coming weeks, the U.S.
ambassador to China said,
adding that it was not just the United States that wanted action
on the Chinese yuan.
China Stands Firm on Yuan As
U.S. Ups Pressure
(Reuters, Mar. 17, 2010) China said it
"could not be any clearer" in its repeated commitment to a stable
exchange rate after the U.S. Congress threatened to levy duties on some
Chinese exports if it fails to revalue its currency.
China Hits Back at U.S. on
Yuan, Rights
(Wall Street Journal, Mar. 13, 2010) China responded sharply to U.S. criticism of its currency
and human-rights practices, the newest indicator of testy relations between
the two powers.
Administration Declines to Cite
China on Currency
(AP, Oct. 15, 2009) The Obama administration
declined to name China
as a country that is manipulating its currency to gain unfair trade
advantages.
China, Russia Working on
Yuan-Ruble Trade Settlement
(Dow Jones, Oct. 13, 2009) China and Russia are working on ways to
eventually settle their trade with the Chinese yuan and Russian ruble, senior
government officials from the two countries said.
Geithner: US Wants Bigger
Role for China in IMF
(AP, Sep. 24, 2009) Treasury Secretary Timothy
Geithner says the U.S.
supports China's
bid for greater voting rights in international organizations like the IMF and
the World Bank.
China to Issue
Yuan-Denominated Bonds in Hong Kong
(New York Times, Sep. 9, 2009) The Chinese Ministry
of Finance said that it would issue 6 billion yuan worth of government bonds
in Hong Kong, a major step to
internationalize its currency at a time of concern about the dollar.
China Urges Responsible U.S.
Policy, Stable Dollar
(Reuters, Jul. 22, 2009) China will again press the United States at high-level talks next week to
protect Beijing's extensive U.S.
investments by pursuing sound policies and keeping the dollar stable, a
senior official said.
Russia, China to Promote
Ruble, Yuan Use in Trade
(Bloomberg, Jun. 17, 2009) The leaders of Russia and China agreed to expand use of the
ruble and yuan in bilateral trade to lessen dependence on the U.S. dollar.
Yuan May Be Reserve Currency
by 2020—China Official
(Reuters, May 20, 2009) In the latest
advertisement of China's currency ambitions, an official suggested that the
yuan could make up more than 3 percent of global foreign exchange reserves by
2020.
China to Boost IMF Funding
through SDR Bond
(Reuters, May 10, 2009) China will invest in a bond
denominated in Special Drawing Rights (SDRs) as part of efforts to increase
the resources of the International Monetary Fund, a senior central bank
official said.
China’s Investing Turns to
Neighbors By Aaron Back and Dinny McMahon (Wall Street
Journal, Aug. 19, 2010) Data shows China has stepped up its buying of
Japanese government bonds, and evidence has emerged that the country is also
buying more South Korean debt. And on Thursday, China added the Malaysian ringgit
to a small group of currencies it allows to be traded directly against the
yuan.
Rise in Value of Currency to
Be Slow, China Insists By Keith Bradsher (New York Times, Jun. 20, 2010) A day after announcing that it
would allow a more flexible currency, China said that any appreciation in its
value would be gradual.
Private Efforts Help Resolve
Public Tensions Between U.S. and China By
John Pomfret (Washington Post, Apr.
10, 2010) The lessons from the three months of tension with Beijing are unclear. China's reaction to the Taiwan arms sale could have scared the
administration off any subsequent plans to provide Taipei weapons, including a batch of 66 F-16 fighters. But it also might have
prompted the administration to conclude that China's reaction was not that
unusual.
China Seems Set to Loosen
Hold on Its Currency By Keith Bradsher (New York
Times, Apr. 9, 2010) The Chinese government is preparing to announce in the
coming days that it will allow its currency to strengthen slightly and vary
more from day to day, people with knowledge of the emerging consensus in Beijing said.
Geithner to Visit China, in
Sign of Warming Relations By Vikas Bajaj and Keith Bradsher (New York
Times, Apr. 8, 2010) In a sign of improving economic relations between the
United States and China, Treasury Secretary Timothy F. Geithner will meet the
Chinese vice prime minister in Beijing on his way back to the United States
from India.
Coming Visit May Signal
Easing by China on Currency By Vikas Bajaj (New York Times, Apr. 2, 2010) Eswar S. Prasad of Cornell said that
one of the most compelling reasons for China to change its currency policy
was that it limited Beijing’s ability to manage its economy.
China’s Not-So-Fair Trade By
Nouriel Roubini
(Forbes, Apr. 1, 2010) Every year the U.S. bases the decision of whether to label China
a currency manipulator more on politics than on economic facts. This year
several factors have increased the likelihood that China will be branded a currency
manipulator.
The World Needs Rebalancing,
Not China Alone By Jeffrey E. Garten (YaleGlobal, Mar. 22, 2010) Most important is for the US and
China to understand each other’s constraints and goals – in many ways the
goals of both countries revolve around employment, even if the manner to
achieve such an end is vastly different.
Obama Urged to Act on
China’s Currency Manipulation
By Howard Schneider (Washington Post, Mar. 26, 2010) Pressure is mounting on the
Obama administration to take action against China for undervaluing its currency.
U.S.-China Trade Is Win-Win
Game By Zhong Shan
(Wall Street Journal, Mar. 26, 2010) A sound and
stable China-U.S. economic and trade relationship is more important than
ever. China-U.S. trade and economic cooperation has generated huge and real
benefits for the United States,
while China
has been gaining a lot from it as well.
Battle Between the US and
China Over the Yuan Hotting Up
By David Uren (The Australian, Mar. 22, 2010) The battle between the US
and China
over exchange rates is getting dangerous. And there is no sign that either
side is interested in using the G20 to mediate -- the Australian government's
strong preference.
A China-U.S. Reckoning By
Nouriel Roubini, Rachel Ziemba and Adam Towle (Forbes, Mar. 18, 2010) The fault lines in the U.S.-China
relationship have been increasingly exposed in recent weeks, with rhetorical
barbs exchanged on many issues, especially exchange rates.
Will China Listen?
(Editorial, New York Times, Mar. 17, 2010) The
drumbeat of complaints in Washington about China’s
manipulation of its currency might lead one to think that this is just an
American problem. It isn’t.
Newly Powerful China Defies
Western Nations with Remarks, Policies By
John Pomfret (Washington Post, Mar. 15, 2010)
China's government has embraced an increasingly anti-Western tone in recent
months and is adopting policies across a wide spectrum that reflect a
heightened fear of foreign influence.
China Uses Rules on Global
Trade to Its Advantage By Keith Bradsher (New York Times, Mar. 15, 2010) With China’s exports soaring,
even as other major economies struggle to recover from the recession,
evidence is mounting that Beijing is skillfully using inconsistencies in
international trade rules to spur its own economy at the expense of others.
Taking on China By
Paul Krugman
(New York Times, Mar. 15, 2010) Tensions are
rising over Chinese economic policy, and rightly so: China’s policy of
keeping its currency, the renminbi, undervalued has become a significant drag
on global economic recovery. Something must be done.
China Signals Defiance on
U.S. Relations By Andrew Batson, Terence
Poon and Shai Oster (Wall
Street Journal, Mar. 7, 2010) China
gave little hope that it would accommodate Washington on Iran and other thorny
foreign-policy issues, despite the first real sign of flexibility in years
over its exchange rate.
U.S. Officials Hopeful China
Will Make Concessions on Currency By
John Pomfret (Washington Post, Feb. 5, 2010)
Treasury Secretary Timothy F. Geithner said that he believed China
would allow its currency to appreciate vis-à-vis the dollar.
Currency Dispute Likely to
Further Fray U.S.-China Ties By Mark Landler (New York Times, Feb. 4, 2010) The Obama administration is reviving
American pressure on China
to stop artificially depressing its currency, a policy that fuels its
persistent trade gap with the United
States.
History Smiles on Ambitious
Yuan By Barry Eichengreen
(Taipei Times, Nov. 29, 2009) Can the yuan become
a major international currency in as little as a decade? Only time will tell.
But US
history suggests that this schedule, while ambitious, is not impossible.
Is China Ready to Challenge the Dollar? By
Melissa Murphy and Wen Jin Yuan
(PacNet #72, Pacific Forum, CSIS, Nov. 5, 2009) It would be a mistake to
conclude that China
is ready to ditch the dollar anytime soon, let alone supplant the dollar’s
reserve role with the reminbi.
Q+A-What Do China and the
IMF Want from Each Other? By Simon Rabinovitch (Reuters, Oct. 7, 2009) Efforts to repair strained ties between China and the International Monetary Fund made
headway at the IMF's semiannual meetings this week in Turkey.
China’s Push for Power Is
Irresistible By David Prosser
(Independent, Oct. 7, 2009) The scene is set. China – and others – have wanted to wrest
power from the US.
Soon they'll have the economic clout to achieve their goal. Robert Fisk: A Financial
Revolution with Profound Political Implications
China Calls Time on Dollar
Hegemony By Ambrose
Evans-Pritchard
(Telegraph, Oct. 6, 2009) You can date the end of
dollar hegemony from China's
decision last month to sell its first batch of sovereign bonds in Chinese
yuan to foreigners.
China Thinks the Washington Consensus Is Dead! By
Laurence Brahm (PacNet #65, Pacific Forum,
CSIS, Sep. 29, 2009) China
has given the developing world a new response profile. Rather than argue with
the IMF policy, make the IMF your debtor.
How China’s Yuan Can Become
a Global Currency By Friedrich Wu
(BusinessWeek, Sep. 15, 2009) While chances are
good that the yuan will evolve into a regional currency in the next few
years, China is in no position to challenge the preeminent role of the U.S.
dollar in the near future, despite some worries in the U.S.
Replacing the Dollar:
China’s Big Plans for Its Currency By
Michael Schuman (Time, Jul. 20, 2009) China's
motivations to boost the global standing of the yuan stem from the same
concerns as its calls for a new reserve currency. Greater use of the yuan in
trade would improve the competitiveness of Chinese exporters by reducing
transaction costs and currency risks.
Yuan Deposes Dollar on China
Border in Sign of Future
(Bloomberg, Jul. 8, 2009) China expanded yuan settlement agreements last
week from border zones to its largest financial centers, including Shanghai, Guangzhou and Hong Kong. The program is being rolled out across Malaysia, Indonesia,
Brazil and Russia,
all nations seeking to reduce the dollar’s role as the linchpin of world
finance and trade.
China Reassures on Dollar
Debate Before G8 By Silvia Aloisi and Anna Willard (Reuters, Jul.
5, 2009) France and Russia urged a debate about the world's reserve
currencies, but China said the dollar would keep its pre-eminence for
"many years to come."
China Has ‘Grand Scheme’ for
Yuan’s Role, Prasad Says
(Bloomberg, Jul. 3, 2009) China’s call for a new
world reserve currency is part of a “grand scheme” to reduce the dollar’s
dominance and increase the yuan’s role, said a former senior International
Monetary Fund official.
The Yuan Lies in Waiting By
Francesco Sisci
(Asia Times, Jun. 18, 2009) Pundits in China
are scratching their heads over the future of their currency, the yuan, which
has been brought to the fore by the present financial crisis.
China Willing to Buy As Much
As $50 Billion in IMF Bonds By Andrew Batson (Wall Street Journal, Jun. 6, 2009) China said it is willing to
buy as much as $50 billion in bonds issued by the International Monetary
Fund, part of a deal made by the world's major economies earlier this year to
boost the resources the global agency has to combat financial crises.
International Monetary
Reform and the Future of the Renminbi By
Pieter Bottelier (China Brief, Jamestown
Foundation, May 27, 2009) It seems likely that the financial crisis will lead
to more hedging by Beijing of the U.S. dollar through increased international
use of the RMB and accelerated movement toward full RMB convertibility.
Beijing’s Would-Be Houdinis By
Sebastian Mallaby
(Washington
Post, May 26, 2009) It is easy to appreciate China's sudden appetite for bold
new ideas about international finance. But Beijing's leaders look less like the
architects of a new Bretton Woods than like aspiring Houdinis.
Brazil, China Plan to Trade
without Dollars Is ‘Pure Idle Talk’ By
Febiola Moura (Bloomberg, May 21, 2009) China
and Brazil’s proposal to abandon the dollar for bilateral trade and use yuan
and reais instead is “pure idle talk,” former Brazilian central bank
President Gustavo Franco said.
China Tries to Wriggle Out
of the US Dollar Trap By Wenran Jiang
(YaleGlobal, Apr. 29, 2009) China is employing a
multi-pronged approach to reduce its US dollar exposure by seeking to foster
greater use of its domestic currency, the RMB, in trade agreements and by
making purchases or direct investments in natural resources and hard assets.
China Steps Up to World
Stage, Cautiously By Francois Godement
(YaleGlobal, Apr. 24, 2009) China acted in a manner which has
become hallmark of its behavior: guarded, pragmatic, and ambiguous. Expecting
anything different was a miscalculation. And expecting a major change in China’s
stance in the near term is likely to be wrong too.
China Uses Global Crisis to
Assert Its Influence By Ariana Eunjung Cha (Washington Post, Apr. 23, 2009) Overseas aid and loans are just
one way China is asserting itself in its new role as a world financial
leader. While polishing China's
own image, Premier Wen Jiabao and other top leaders have blamed the West for
the global economic crisis.
China’s Rise is America’s
Decline By Martin Jacques
(Guardian, Apr. 23, 2009) Beijing
is becoming increasingly assertive on global finance and economics — and the US
will be the loser.
China Takes a Small Step
Away from the Dollar By Neel Chowdhury
(Time, Apr. 6, 2009) "A lot of this is
symbolic." "China
wants to be a player." And one sure way to be a player, as everyone
knows, is to threaten to quit the game.
China’s Yuan Ambitions By
Ben Simpfendorfer
(Wall Street Journal Asia, Apr. 5, 2009) Beijing has signed
currency swap agreements with six central banks. China has long wanted its
currency to play a more important role in the global financial system, and
these swap arrangements come in the context of that broader policy aim.
China’s Dollar Trap By
Paul Krugman
(New York Times, Apr. 3, 2009) Mr. Zhou’s speech
was actually an admission of weakness. In effect, he was saying that China
had driven itself into a dollar trap, and that it can neither get itself out
nor change the policies that put it in that trap in the first place.
China Takes Stage as Global
Economic Power By Michael Wines and Edward Wong (New York
Times, Apr. 2, 2009) As Presidents Hu Jintao and Obama had their first
meeting on the sidelines of the summit proceedings, the Chinese appeared torn
between seizing their moment in the geopolitical spotlight and shying from
it.
Asia Split Over China’s “War
of Nerves” with U.S. By Tetsushi Kajimoto and Yoo Choonsik (Reuters, Mar.
31, 2009) Asian policymakers are preoccupied with China's "war of
nerves" over the U.S. dollar's global status rather than the impact of
the Fed's debt buying on their vast dollar-linked savings, officials told
Reuters.
China Challenges US Global
Financial Leadership By Elaine Kurtenbach (AP, Mar. 28, 2009) The only major economy still growing at a
fast clip, China
is being unusually forthright in challenging the U.S.-led global order ahead
of an April 2 summit on the financial crisis.
China Rises Again—Part I By
Wang Gungwu
(YaleGlobal, Mar. 25, 2009) Wang predicts that
modern Chinese leaders will rely on ancient principles to achieve timeless
goals: the economic global can serve as a means in establishing a prosperous
and powerful state that wields global influence.
Meltdown 101: Will China
Global Currency Idea Fly? By Christopher S. Rugaber (AP, Mar. 24, 2009) China's central bank has called
for the creation of a new global currency as an alternative to the dollar, in
the latest sign of that country's growing assertiveness on the international
stage. But would the idea even work?
China Urges New Money
Reserve to Replace Dollar By David Barboza (New York Times, Mar. 24, 2009) In another indication that China
is growing increasingly concerned about holding huge dollar reserves, the
head of its central bank has called for the eventual creation of a new
international currency reserve to replace the dollar.
China Losing Taste for Debt
from the U.S. By Keith Bradsher
(New York Times, Jan. 8, 2009) The declining
Chinese appetite for United
States debt, apparent in a series of hints
from Chinese policy makers over the last two weeks, comes at an inconvenient
time.
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