Latest news with #LujiazuiForum
Business Recorder
an hour ago
- Business
- Business Recorder
China's yuan rises on stronger fixing, weaker dollar outlook
HONG KONG: China's yuan firmed against the US dollar on Friday as the central bank set the daily fixing stronger and as expectations of dollar weakness supported the currency. Prior to the market opening, the People's Bank of China set the midpoint rate at 7.1695 per dollar - its strongest since March 17 and 106 pips firmer than a Reuters' estimate. The PBOC has guided the yuan's daily fixings firmer in recent sessions — a move viewed as an effort to boost confidence in the currency amid an uneven Chinese economy and uncertainty over Sino-US trade talks. Meanwhile, China kept benchmark lending rates unchanged as expected on Friday, after Beijing rolled out sweeping monetary easing measures a month earlier to support the economy. By 0400 GMT, the yuan was 0.08% higher at 7.1811 to the dollar after trading in a range of 7.1756 to 7.1822. Its offshore counterpart traded at 7.1819 yuan per dollar, up about 0.06% in Asian trade. The sluggish dollar performance in June amid concerns over the ballooning US fiscal deficit and the durability of US assets due to the trade war, also helped the yuan. 'Emerging market currencies are marginally stronger versus the dollar month-to-date and have held onto their May gains', Goldman Sachs analysts said in a note. China's yuan hits one-week low on worries over Middle East conflict The bank expects some low yielding Asian currencies, including Chinese yuan, to continue to perform well versus the dollar. The yuan is up 0.3% against the dollar this month, and 1.7% this year. The PBOC governor vowed to promote further yuan internationalisation at the 2025 Lujiazui Forum earlier this week, also lifting sentiment. Separately, the Hong Kong dollar hit 7.85 per US dollar on Friday, touching the weak end of its trading band against the dollar for the first time since May 2023, according to LSEG data.
South China Morning Post
17 hours ago
- Business
- South China Morning Post
US dollar uncertainty propels use of e-CNY
The geopolitical world is becoming multipolar. Inevitably, the international monetary system is also evolving towards one where several sovereign currencies coexist and compete with each other. Advertisement As the second-largest economy, China must broaden the international role and appeal of the yuan. To this end, it makes sense to set up a new operations centre in Shanghai, the key mainland financial hub, to boost the yuan's global reach. As announced at the just-concluded Lujiazui Forum in the city, the international operations centre will pilot a range of monetary policy tools to complement the rolling out of the digital renminbi. The strategy underscores Beijing's determination to promote the use of the e-CNY, a central bank digital currency (CBDC), on a worldwide scale. At a time when most countries are still grappling with the concept of a CBDC, China is moving full steam ahead. Successful trials in the retail use of e-CNY have been carried out across a dozen Chinese cities since 2023, and in Hong Kong since last year. Advertisement A promising cross-border payments and banking system called 'mBridge' is linking the CBDCs from the central banks of China, Hong Kong, the UAE, Saudi Arabia and Thailand.
Business Standard
21 hours ago
- Business
- Business Standard
China's benchmark drop 0.79%
Asian stocks ended mostly lower on Thursday after a hawkish commentary from the U.S. Federal Reserve and amid an ongoing geopolitical unrest in Middle East. The Federal Reserve Open Markets Committee's economic projections showed unemployment and inflation rising higher than officials previously thought due to tariff-related uncertainties. Elsewhere, the Trump administration offered few clues about whether the U.S. will join Israel's offensive aimed at destroying Tehran's nuclear program. The dollar was firm in Asian trade, sending gold prices down below $3,360 per ounce. Oil prices rose about 1 percent on fears that a wider regional conflict could disrupt Middle East oil exports. China's Shanghai Composite index fell 0.79 percent to 3,362.11 as the latest stimulus announcements made at Shanghai's Lujiazui Forum fell short of expectations.
South China Morning Post
a day ago
- Business
- South China Morning Post
Why US-backed stablecoins have China wary of a potentially more dominant dollar
With major economies gearing up for the rising ubiquity of stablecoins and their impact on the global economy, former Chinese central bank chief Zhou Xiaochuan has warned that US dollar-backed stablecoins could accelerate the 'dollarisation' of the international monetary system. Amid the explosive growth of cryptocurrency in the past few years, continued focus from high-level figures reflects the Chinese government's interest in underlying technologies and their potential role in cross-border finance, despite cryptocurrency trading being banned on the mainland. 'Although other countries are considering issuing their own local-currency stablecoins, their potential global impact remains uncertain, whereas USD-backed stablecoins could have worldwide influence,' said Zhou, the architect of many of China's early financial reforms, at the Lujiazui Forum in Shanghai on Wednesday. 'USD-backed stablecoins may facilitate US dollarisation, and the effects of this remain highly debated. 'Unless facing extreme, dire circumstances – such as [fighting] high inflation or heavy debt burdens – pursuing dollarisation could bring many adverse side effects.' The US Senate this week passed landmark stablecoin legislation that, for the first time, established federal guardrails for US dollar-pegged stablecoins, creating a regulated pathway for private companies to issue digital dollars with the blessing of the federal government. Zhou Xiaochuan, former governor of the People's Bank of China, attends a plenary session during the 2025 Lujiazui Forum on Wednesday in Shanghai. Unlike volatile cryptocurrencies such as bitcoin or ethereum, whose prices experience drastic fluctuations, stablecoins aim to combine the efficiency of digital assets with the reliability of traditional money. By pegging their value to fiat currencies such as the US dollar or Hong Kong dollar, or to other reserve assets, stablecoin prices are meant to live up to their name – as long as the currency behind them remains strong.
South China Morning Post
a day ago
- Business
- South China Morning Post
Hong Kong to study Beijing's monetary policy, weigh risks before issuing yuan stablecoins
Hong Kong will assess the risks and study Beijing's monetary policies before launching yuan-pegged stablecoins to bolster the internationalisation of the Chinese currency, according to a local senior official. Christopher Hui Ching-yu, Secretary for Financial Services and the Treasury, said during a panel on Wednesday at the Lujiazui Forum in Shanghai that while Hong Kong was technically ready to proceed, more time was needed to evaluate the advantages and disadvantages of issuing such a cryptocurrency. 'The risks and monetary policy directions must be studied, as there will be both benefits and drawbacks to issuing a linked stablecoin,' he said. 'We need to align our considerations with national policymaking and [Beijing's] road map [for yuan internationalisation].' Last month, Hong Kong passed new legislation requiring issuers of stablecoins – digital tokens pegged to a reference asset like a fiat currency – to be licensed by the Hong Kong Monetary Authority (HKMA). The law is set to take effect on August 1. People's Bank of China Governor Pan Gongsheng speaks at the opening ceremony of the Lujiazui Forum in Shanghai on Wednesday. Photo: AFP
