Beijing will give London-based institutions the right to invest directly into China using the yuan, George Osborne has announced, giving the City an edge over other financial centres fighting for business.
Showing posts with label Chinese currency. Show all posts
Showing posts with label Chinese currency. Show all posts
Thursday, October 17, 2013
Thursday, July 18, 2013
I.M.F. Tells China of Urgent Need for Economic Change
WASHINGTON — China’s growth has slowed significantly in recent months. But even its current pace of expansion may not be sustainable, the International Monetary Fund warned on Wednesday, unless China starts making significant and systemic economic changes — and soon.
Thursday, March 15, 2012
China's Wen Jiabao says 'reforms urgent'
China's Premier Wen Jiabao has delivered a strong warning about the ''urgent'' need for reforms, without which, he said, tragedies such as the Cultural Revolution could still happen.
Friday, January 13, 2012
China's foreign currency reserves decline
China's official foreign currency reserves fell in the last three months of 2011, marking their first quarterly decline since 1998.
Monday, May 30, 2011
Yuan at record high versus dollar after Treasury report
China's yuan has hit a record high against the US dollar after the US Treasury department said the Chinese currency was undervalued but not manipulated.
The People's Bank of China (PBOC) fixed the yuan's mid-point at 6.4856 against the US dollar on Monday.
China has been accused by the US and other developed economies of keeping the value of its currency artificially low to boost its exports.
The People's Bank of China (PBOC) fixed the yuan's mid-point at 6.4856 against the US dollar on Monday.
China has been accused by the US and other developed economies of keeping the value of its currency artificially low to boost its exports.
Saturday, October 23, 2010
Geithner calls for cap on trade surpluses
Gyeongju, South Korea (FT) -- Washington has taken a fresh line of attack in attempts to get Beijing to allow its currency to appreciate, calling for the G20 group of leading economies to agree a cap on current account surpluses.
The U.S. has long sought faster and sustained appreciation of the renminbi but Beijing has consistently resisted specific targets.
In order to break this impasse, Timothy Geithner, U.S. Treasury secretary, said G20 finance ministers, meeting in the South Korean city of Gyeongju on Friday, should commit to limit trade deficits and surpluses that create imbalances in the global economy.
"G20 countries with persistent surpluses should undertake structural, fiscal and exchange rate policies to boost domestic sources of growth and support global demand," Mr Geithner wrote in a letter to G20 ministers that was circulated among reporters.
Still, much of Mr Geithner's language was tailored to the challenge posed by the renminbi. By building up domestic demand and increasing imports, China would be inclined to allow a faster strengthening of its currency.
"Emerging market countries with significantly undervalued currencies and adequate precautionary reserves need to allow their exchange rates to adjust fully over time to levels consistent with economic fundamentals," he added.
G20 officials on Friday said the U.S. initially proposed that trade surpluses should be capped at 4 per cent of gross domestic product.
One senior G20 official said the letter, drafted after a proposal from South Korea, would not come as a shock to the Chinese because financial officials had been sounding out Beijing in earlier meetings.
The G20 official said the Chinese had cautiously welcomed the suggestion of shifting the debate away from the narrow focus on currency and could even be open to the 4 per cent target because it chimed with their own forecasts.
"I do not know whether the Chinese fully agreed in advance or not, but if the Americans decided to circulate the letter, it should be a sign they have already agreed something. The bigger worry is opposition from Germany and Japan."
China gave no immediate reaction. Cui Tiankai, Beijing's representative to the G20, last week said any U.S.-led offensive on Chinese currency would be "wrong" but said he was "cautiously optimistic" a final deal could be done if it took broad macroeconomic factors into account.
He said asking China to set targets on currency was tantamount to asking it to manipulate the renminbi. He repeated Beijing's assertions that it was already doing enough to stimulate domestic demand and that it was unfair to expect a sudden change in consumers' habits.
Jim Flaherty, Canada's finance minister, said Mr Geithner's proposal was helpful and added that it could be regarded as part of an action plan to be agreed by a summit of G20 leaders in Seoul on November 11. A French official told reporters that Paris was also sympathetic to the suggestion, which echoed its complaints about Germany's surpluses.
However, Yoshihiko Noda, Japan's finance minister, told reporters that numerical targets would be difficult to implement. A senior German official also reacted negatively, telling Deutsche Presse-Agentur that Germany's surplus could not be likened to that of China. He argued that Berlin's surpluses were unrelated to the euro and were simply a sign of trading strength.
Mr Flaherty held out hopes that an initial compromise could be reached by the end of the Gyeongju meeting on Saturday.
"No one wants to walk out from here without an agreement on an action plan," he told reporters.
It was unclear whether a demand for action on current accounts would be any more acceptable to Beijing as it argues it is already taking sufficient steps to stimulate domestic demand. "We are not just an exporter," Mr Cui told a conference in Seoul. "We are making our best efforts to diversify our economy to base economic growth on domestic consumption and we are going to import more."
Despite the growing divisions, Lee Myung-bak, South Korea's president, joked he would not let any of the ministers leave until a deal was done.
"If you do not reach an agreement, when you come to leave, we may not operate buses, trains or planes," he said.
By Christian Oliver and Song Jung-a,
www.FT.com
The U.S. has long sought faster and sustained appreciation of the renminbi but Beijing has consistently resisted specific targets.
In order to break this impasse, Timothy Geithner, U.S. Treasury secretary, said G20 finance ministers, meeting in the South Korean city of Gyeongju on Friday, should commit to limit trade deficits and surpluses that create imbalances in the global economy.
"G20 countries with persistent surpluses should undertake structural, fiscal and exchange rate policies to boost domestic sources of growth and support global demand," Mr Geithner wrote in a letter to G20 ministers that was circulated among reporters.
Still, much of Mr Geithner's language was tailored to the challenge posed by the renminbi. By building up domestic demand and increasing imports, China would be inclined to allow a faster strengthening of its currency.
"Emerging market countries with significantly undervalued currencies and adequate precautionary reserves need to allow their exchange rates to adjust fully over time to levels consistent with economic fundamentals," he added.
G20 officials on Friday said the U.S. initially proposed that trade surpluses should be capped at 4 per cent of gross domestic product.
One senior G20 official said the letter, drafted after a proposal from South Korea, would not come as a shock to the Chinese because financial officials had been sounding out Beijing in earlier meetings.
The G20 official said the Chinese had cautiously welcomed the suggestion of shifting the debate away from the narrow focus on currency and could even be open to the 4 per cent target because it chimed with their own forecasts.
"I do not know whether the Chinese fully agreed in advance or not, but if the Americans decided to circulate the letter, it should be a sign they have already agreed something. The bigger worry is opposition from Germany and Japan."
China gave no immediate reaction. Cui Tiankai, Beijing's representative to the G20, last week said any U.S.-led offensive on Chinese currency would be "wrong" but said he was "cautiously optimistic" a final deal could be done if it took broad macroeconomic factors into account.
He said asking China to set targets on currency was tantamount to asking it to manipulate the renminbi. He repeated Beijing's assertions that it was already doing enough to stimulate domestic demand and that it was unfair to expect a sudden change in consumers' habits.
Jim Flaherty, Canada's finance minister, said Mr Geithner's proposal was helpful and added that it could be regarded as part of an action plan to be agreed by a summit of G20 leaders in Seoul on November 11. A French official told reporters that Paris was also sympathetic to the suggestion, which echoed its complaints about Germany's surpluses.
However, Yoshihiko Noda, Japan's finance minister, told reporters that numerical targets would be difficult to implement. A senior German official also reacted negatively, telling Deutsche Presse-Agentur that Germany's surplus could not be likened to that of China. He argued that Berlin's surpluses were unrelated to the euro and were simply a sign of trading strength.
Mr Flaherty held out hopes that an initial compromise could be reached by the end of the Gyeongju meeting on Saturday.
"No one wants to walk out from here without an agreement on an action plan," he told reporters.
It was unclear whether a demand for action on current accounts would be any more acceptable to Beijing as it argues it is already taking sufficient steps to stimulate domestic demand. "We are not just an exporter," Mr Cui told a conference in Seoul. "We are making our best efforts to diversify our economy to base economic growth on domestic consumption and we are going to import more."
Despite the growing divisions, Lee Myung-bak, South Korea's president, joked he would not let any of the ministers leave until a deal was done.
"If you do not reach an agreement, when you come to leave, we may not operate buses, trains or planes," he said.
By Christian Oliver and Song Jung-a,
www.FT.com
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