The Chinese yuan fell today as the World Bank reduced its projections for global growth. The previous data from China did not help the currency either.
Chinese Yuan CNY
Central Bank: People's Bank of China
Interest Rate: 6.00%
Public Debt to GDP Ratio, 2011: 43.5%
Trade Balance, 2011: $161 bln.
Inflation, 2011: 5.5%
Major industrial exporter
Factors of Weakness
Currency valuation is opposed
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
June 13th, 2013 at 9:55
June 03rd, 2013 at 14:09
The Chinese yuan fell today as China’s manufacturing contracted last month, adding to concerns that the nation’s economy is going to experience slower growth.
May 13th, 2013 at 13:45
The Chinese yuan weakened today as the People’s Bank of China lowered its reference rate, forcing the exchange rate down. Analysts remain bullish on the currency in the long term.
May 08th, 2013 at 14:13
The Chinese yuan strengthened today as China’s trade balance improved, beating analysts’ forecasts, and the central bank increased its daily fixing to the record high.
May 07th, 2013 at 14:20
The Chinese yuan gained today on signs that the government is planning to ease control over the currency and allow capital to move more freely in and out of the country.
May 03rd, 2013 at 10:52
The Chinese yuan was strong today together with other Asian countries on hopes that monetary stimulus in developed nations will result in higher capital inflows into the region. Domestic fundamentals were less supportive for the currency though.
April 25th, 2013 at 9:43
The Chinese yuan advanced today, trading near the record level, as the People Bank of China increased its reference rate and demand for the currency among traders increased.
April 17th, 2013 at 9:16
The Chinese yuan posted the biggest gain in four months and reached the record high today as the central bank raised the daily fixing and policy makers suggested that the currency will be allowed to trade in broader range.
April 11th, 2013 at 10:41
The Chinese yuan retreated from yesterday’s record level as the People’s Bank of China lowered the daily fixing, but rose from today’s opening, signaling that the market has confidence in the currency.
April 01st, 2013 at 14:14
The Chinese yuan fell today even as the nation’s manufacturing expanded with faster pace last month. The data still missed projections and perhaps it is a reason for the currency’s weakness.