Tag: yuan

Foreign Investors Dumping the Yuan and Fleeing China

Commentary China’s COVID-19 lockdowns and rate cuts are driving down the yuan and exacerbating foreign capital outflow. “Uncertainty is really the keyword, because there’s no view, no outlook about how long this could last, and what will be next after Shanghai,” Massimo Bagnasco, vice president of the European Union Chamber of Commerce in China, told…


China’s Foreign Capital Data Questioned as Depreciation of Yuan Accelerates

China’s Ministry of Commerce recently claimed that from January to April, the country’s actual use of foreign capital surged by 20.5 percent compared to the same period last year, amid a rapid depreciation of its yuan. But experts believe that the data is false as they say foreign capital has been accelerating its withdrawal from…


China’s State Media Claims De-Dollarization Improves RMB’s International Status

The U.S. dollar has long been recognized as the leading global reserve/fiat currency. But recent hardships posed by the pandemic, war, economic sanctions, dwindling food reserves, and energy shortages have motivated some countries to accelerate the diversification of their currencies. This emerging trend is referred to as de-dollarization. Official media of the Chinese Communist Party…


PBOC Intervention Fails to Halt RMB Decline

The onshore exchange rate of RMB against the U.S. dollar stopped falling briefly on April 26 under the policy adjustment of the People’s Bank of China (PBOC), but continued falling to close at 6.6115 on April 28, down 546 basis points from the previous trading day. An expert believes that the RMB exchange rate is…


Israel Is Mistaken About China

News Analysis Israel is America’s longtime friend and ally. We have been through a lot together. And Israel is a rare democracy in the Middle East. So when Israel’s central bank recently made plans to downgrade the U.S. dollar in its reserves and introduce China’s yuan, it really hurt. Friends should not do this to…


Russia Wants to Pay Debts in Chinese Yuan, Dollar Still Dominant

News Analysis The West has rejected Russian President Vladimir Putin’s demand that gas payments be made in rubles. China is offering the yuan, but prospects are dim. On March 23, Moscow listed 48 countries as “unfriendly” and said it would require these countries to pay for commodity purchases in rubles. Those countries— including European Union…


Bitcoin Won’t Replace the Dollar—but China’s Digital Currency Might

Commentary In 2009, bitcoin, the world’s first decentralized digital currency was created. Designed to replace the U.S. dollar, the global reserve currency, bitcoin has become a sort of Rorschach test for humanity. Some have compared it to rat poison; meanwhile, other people, like Eric Adams, the crypto-friendly mayor of New York City, are firm believers….


Beijing Wants to Make the Yuan International, Without Releasing Capital Controls

News Analysis Beijing wants the yuan to be truly global, but this will be impossible unless the Chinese Communist Party (CCP) releases its capital controls and allows the currency value to be set by the markets. Even then, the dollar will most likely continue to be the world’s currency. Over the past two months, the…


Could China Use Ukraine War to Challenge US Dollar Hegemony?

Commentary Russia’s war in Ukraine, and the West’s response so far, has been a gift to China. The West’s strict sanctions on Russia have isolated the country from much of the world. It needs a financial lifeline. The war in Ukraine, and the West’s sanctions against Russia, is providing a unique opportunity for China to…


China Eases Control to Let Ruble Fall Faster Against Yuan

BEIJING—The Chinese regime is easing exchange rate controls to let the Russian ruble fall faster in value against the Chinese yuan to help insulate Beijing from economic sanctions on Moscow. The margin by which the ruble is allowed to fluctuate against the yuan in state-controlled daily trading will be doubled in size to 10 percent…