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Renminbi

All articles tagged with #renminbi

The Renminbi Gap: Why a Stronger Yuan Is a Global Priority
world1 month ago

The Renminbi Gap: Why a Stronger Yuan Is a Global Priority

Brad Setser argues that China’s large current-account surplus and the yuan’s managed undervaluation indicate a substantial undervaluation, with the PBOC’s FX interventions sustaining an export-led model that fuels global imbalances. He contends that allowing modest yuan appreciation could help rebalance growth, though some economists urge waiting for domestic-demand reforms; inaction risks larger global disruption as reliance on China’s exports persists.

via Council on Foreign Relations|
#china#currency#global-economy
China’s RMB expansion aims to loosen dollar grip, not topple it overnight
world2 months ago

China’s RMB expansion aims to loosen dollar grip, not topple it overnight

Beijing is methodically expanding offshore RMB, cross-border finance, and international market access to reduce dependence on the U.S. dollar and create alternative financial infrastructure, framed as a strategic upgrade in the 15th Five-Year Plan. While not a quick replacement of the dollar, the moves position China as a credible disruptor that could reshape global finance over time, prompting U.S. policymakers and Western markets to hedge against greater dollar diversification.

via CNBC|
#dollar#five-year-plan#global-finance
Beijing bets on RMB ascent as dollar dominance endures
economy7 months ago

Beijing bets on RMB ascent as dollar dominance endures

China aims to challenge the dollar’s supremacy, but turning that ambition into reality would require major structural changes—relaxing capital controls and building the financial infrastructure—steps Beijing has begun through cross-border banking and RMB-use in trade. Yet the dollar’s global role remains powerful due to vast U.S. Treasury issuance, market depth, and established payment networks, and limited high-quality assets outside the U.S. means the renminbi’s share in reserves is likely to rise only modestly, restrained by China’s capital controls and weaker institutions.

via Axios|
#capital-controls#cross-border-banking#dollar-dominance
China Posts Historic Trade Surplus as Exports Flood Global Markets
world7 months ago

China Posts Historic Trade Surplus as Exports Flood Global Markets

China posted a $1.19 trillion trade surplus for 2025—the largest on record and up 20% from 2024—driven by a weak renminbi and booming exports to Europe, Africa and Southeast Asia, while imports were flat; despite U.S. tariffs shaving about 22% off the U.S. surplus, shipments to other regions surged as Beijing pursues self‑reliance ahead of its 2030 plan, with the IMF urging currency normalization and a shift toward stronger domestic demand.

via The New York Times|
#china#exports#imports
finance3 years ago

Gold's Role in New Monetary Regime Questioned Amidst Market Volatility

Emerging central banks are preparing for a new monetary regime in which gold will play a vital role as a settlement mechanism, according to Goehring & Rozencwajg. Central banks have stepped up gold allocation, boosting their reserves, led by emerging economies such as China, India, Turkey, Egypt, Qatar, and Singapore. The U.S. dollar might be on the verge of losing its reserve currency status, and a change in the dollar's reserve currency status would be the most impactful market shock of the last forty years.

via Kitco NEWS|
#central-banks#finance#gold