Exchange Rates and Internationalization of RMB
[ News ] [
Papers ]
China Is Easing Yuan-Pay
System
(Wall Street Journal, Jan. 5, 2012) China is
developing a payment system that will make it more efficient for banks to
clear yuan funds across its borders, in another
move aimed at promoting the global use of the Chinese currency.
China Moving to More
Convertible Yuan: Zhou
(Reuters, Dec. 31, 2011) China’s central bank
governor said Beijing would keep improving the exchange rate regime to make
it more flexible, adding it is natural for the currency to fluctuate in a
bigger trading band in future.
China, ASEAN Move Closer to Yuan
(Wall Street Journal, Oct. 22, 2011) China
is working on an agreement with the Association of Southeast Asian Nations to
settle trade in yuan, the official Xinhua News
Agency reported.
China Details Yuan Use
Offshore
(Wall Street Journal, Aug. 23, 2011) China has
released draft guidelines on foreign investors' use of yuan
acquired overseas for direct investment in the country, taking another
significant step forward in further internationalizing the Chinese currency
and opening the nation's tightly controlled capital account.
China Issues 20B Yuan
Treasury Bonds in Hong Kong
(China
Daily, Aug. 17, 2011) China’s
Deputy Financial Minister said the central government would continue issuing renminbi treasury bonds in Hong Kong, which were aimed to
build Hong Kong into an offshore renminbi business center.
IMF Warns of Risk, Urges
China to Strengthen Yuan
(AP, Jul. 22, 2011) China faces risks from inflation
and a possible boom and bust in real-estate prices, and it should allow its
tightly controlled currency to rise to promote economic stability, the IMF
said.
China, Japan, Korea to Study
Local-Currency Trade Settlement
(Wall Street Journal, May 4, 2011) Finance ministers
from China, Japan and South Korea said in a joint statement they have agreed
to start studying the use of their own currencies in trade settlement, the
latest sign of Asian efforts to reduce dependence on the U.S. dollar.
China Signs 700 Mln Yuan
Currency Swap Deal with Uzbekistan
(Reuters, Apr. 19, 2011) China and Uzbekistan
have signed a 700 million yuan bilateral currency
swap deal, which came a day after China’s 25 billion yuan
currency swap deal with New Zealand.
China to Let Yuan Be Traded
Against More Currencies—PBOC
(Reuters, Apr. 7, 2011) China will allow the yuan to be traded against a wider variety of currencies
in the onshore foreign exchange market, the central bank said in a report.
China Looking at Currency
Settlement Scheme with Taiwan
(Reuters, Mar. 30, 2011) China is actively looking at setting up a
cross-Strait currency settlement scheme with Taiwan, a Chinese official said.
China to Expand Yuan
Settlement in Cross Border Trade
(Xinhua, Mar. 3, 2011) China's central bank will
continue to expand a trial program, under which cross boarder trades can be
settled in yuan this year. It's part of plans to
grow the currency's international role.
China to Open Up Yuan
Cautiously, Boost Trade
(Reuters, Jan. 27, 2011) China will carefully open up its yuan to more trading based on market needs and plans to
double its level of imports in five years, its commerce minister said.
Yuan to Spread As Bank of
China Lets US Customers Trade RMB
(Reuters, Jan. 11, 2011) State-owned Bank of
China Ltd has offered yuan trading to U.S. customers, a sign that Beijing this year may increasingly promote
the use of the Chinese currency in major financial centers.
World Bank’s First Yuan Bond
Promotes Chinese Currency’s Internationalization (Xinhua, Jan. 5, 2011) The World Bank's first yuan-denominated
bond offered investors the chance to diversify their currency holdings and
promotes the internationalization of the Chinese currency, the yuan, or RMB, economists said.
China Allows Yuan to Start
Trading against Ruble
(Bloomberg, Nov. 22, 2010) China started allowing the yuan to trade against the Russian ruble from today in the
interbank market as policy makers promote the currency’s use in global trade
and finance.
IMF Approves China as
Third-Biggest Power, Weakening Influence of Europe (Bloomberg,
Nov. 5, 2010) IMF’s executive board approved a plan that would make
China the third- strongest voice in the organization while weakening Europe’s
influence to make room for emerging economies.
Currency War Averted for Now
(San
Francisco Chronicle, Oct. 24, 2010) The world stepped back from the brink of
a currency war Saturday when the world's rich nations agreed to keep from
weakening their currencies in order to gain competitive advantage.
US Administration Delays
China Currency Report
(AP,
Oct. 17, 2010) US President Barack Obama’s administration announced it will
delay a scheduled report on whether China is manipulating its currency to
gain trade advantages until after upcoming meetings with world leaders next
month.
China Central Bank’s Chief
Backs Gradual Rise in Currency
(New
York Times, Oct. 9, 2010) The head of China’s central bank said that he
favored letting the Chinese currency rise in value, but only gradually, as
exchange-rate tensions overshadowed an international meeting of finance
ministers and central bankers.
China Warns US that Bill
Could Seriously Affect Ties
(Reuters,
Oct. 1, 2010) China
warned that a US House of Representatives bill to penalize it for not letting
the yuan rise faster could seriously affect
bilateral ties.
China Has Not Done Enough on
Yuan: Obama
(Reuters,
Sep. 22, 2010) U.S. President Barack Obama said that China has not done enough to raise the value
of the yuan, keeping up tough American rhetoric on
Chinese policy as U.S.
lawmakers weigh new legislation to punish Beijing.
Geithner Says U.S. Examining
Ways to Push China on Yuan Rise
(Bloomberg,
Sep. 15, 2010) Treasury Secretary Timothy F. Geithner
said the U.S. isn’t satisfied with the pace of yuan
gains and is considering ways to urge China to let the currency rise faster.
Bank of China Said to Plan
Yuan Bonds in Hong Kong
(Bloomberg,
Sep. 3, 2010) China
is encouraging the use of its currency for the settlement of cross-border
trade, expanding the amount of yuan held in the
former British colony, whose currency is pegged to the U.S. dollar.
Heavy in Dollars, China
Warns of Depreciation
(Reuters,
Sep. 2, 2010) China offered a rare glimpse into its foreign exchange
reserves, confirming that they are overwhelmingly allocated in dollars, while
a central banker said the mountain of cash could face depreciation risks.
Japan Regulator Met Zhou in
Beijing, Dispelling Speculation He Left China (Bloomberg,
Aug. 30, 2010) Japan’s comment follows speculation on Chinese websites
earlier this week that Zhou had left the country for the U.S. over losses in
China’s holdings of U.S. Treasury securities.
China Mulls Allowing
Malaysia Ringgit to Trade Onshore – Sources
(Wall Street Journal, Jul. 16, 2010) The move is
part of China's
long-term goal of making the yuan a major global
currency. Last month, Beijing widened a pilot
project for using yuan to settle cross-border trade
to cover 20 provinces and municipalities, from four cities in Guangdong province and Shanghai previously.
China Buys Japanese Bonds at
Record Pace, Data Shows
(Bloomberg, Jul. 8, 2010) China bought a net $8.3
billion of Japanese bonds in May, doubling purchases for this year as it
heads for the biggest annual increase since at least 2005.
China Gives in to G20, Sets
Strong Yuan Rate
(AFP, Jun. 28, 2010) China set the strongest yuan exchange rate in years on Monday after Beijing came
under renewed pressure at the Group of 20 summit over the weekend to let the
currency appreciate.
China to Create More
Channels for Yuan Use, Central Bankers Say
(Bloomberg, Jun. 26, 2010) China must create more
channels for investors and companies to use the yuan
if it wants to internationalize the currency and put it on a par with the yen
and the euro, central bank officials and economists told a forum in Shanghai.
China Signals a Gradual Rise
of Currency
(New York Times, Jun. 20, 2010) China’s central bank announced that it would
allow greater flexibility in the value of the country’s currency, in the
clearest sign yet that China
will allow the renminbi to appreciate gradually
against the dollar.
China Acts on Settle More
Deals in Yuan
(Wall Street Journal, Jun. 17, 2010) China's government
will expand a trial program for settling trade deals in yuan
to most of the country, state media reported, in an effort to accelerate the
internationalization of the Chinese currency after a slow start.
Geithner Testifies; U.S. and
China Continue Negotiations on Currency Policies (Washington Post, Jun. 11, 2010) Negotiation with China has
failed to produce a clear sense of when the country might change its
controversial currency policy, Treasury Secretary Timothy F. Geithner said.
China to Continue to
Steadily Advance Reform Related to RMB Exchange Rate (Xinhua, May 24, 2010) Chinese President Hu
Jintao reiterated that China will continue to
steadily advance the reform of the formation mechanism of the RMB exchange
rate under the principle of independent decision-making, controllability and
gradual progress.
EU Steps Up Pressure for
Higher Yuan on Concerns about Recovery (Bloomberg, Apr. 17, 2010) The European Union added to pressure
on China to let its
currency rise on concerns that the value of the yuan
threatens Europe’s economic recovery.
China Economy Grows 11.9%,
Pressuring Wen on Yuan Peg
(Bloomberg, Apr. 15, 2010) China’s economic
growth accelerated to the fastest pace in almost three years in the first
quarter, adding pressure on Premier Wen Jiabao to sever the yuan’s peg
to the dollar and raise interest rates.
Hu Tells Obama China Will
Follow Its Own Path on Yuan
(Bloomberg, Apr. 13, 2010) President Barack Obama
urged China to move toward a “more market-oriented exchange rate” and
President Hu Jintao told
him the country wouldn’t yield to “external pressure” in deciding when to
adjust the yuan.
U.S. To Delay Chinese
Currency Report
(New York Times, Apr. 4, 2010) The Obama
administration said that it would delay a decision on whether to declare
China a currency manipulator, but it vowed to press Chinese leaders on the
politically charged issue.
China Says It Will Not
Adjust Exchange Rate
(New York Times, Mar. 25, 2010) Despite mounting
pressure in Congress for the Obama administration to declare China a currency
manipulator, the Chinese government is giving no indication that it will
change its exchange rate policy.
Hints of Divisions in China
about Yuan Policy
(Reuters, Mar. 19, 2010) A range of Chinese
officials have spoken about the controversial currency policy over the past
few weeks. Management of the yuan is shrouded in
secrecy, but the comments have exposed the outlines of different schools of
thought in the government.
China Faces Important
Negotiation on Yuan: U.S.
(Reuters, Mar. 18, 2010) China faces important negotiations over its exchange
rate in coming weeks, the U.S.
ambassador to China said,
adding that it was not just the United States that wanted action
on the Chinese yuan.
China Stands Firm on Yuan As
U.S. Ups Pressure
(Reuters, Mar. 17, 2010) China said it
"could not be any clearer" in its repeated commitment to a stable
exchange rate after the U.S. Congress threatened to levy duties on some
Chinese exports if it fails to revalue its currency.
China Hits Back at U.S. on
Yuan, Rights
(Wall Street Journal, Mar. 13, 2010) China responded sharply to U.S. criticism of its currency
and human-rights practices, the newest indicator of testy relations between
the two powers.
Administration Declines to
Cite China on Currency
(AP, Oct. 15, 2009) The Obama administration
declined to name China
as a country that is manipulating its currency to gain unfair trade
advantages.
China, Russia Working on
Yuan-Ruble Trade Settlement
(Dow Jones, Oct. 13, 2009) China and Russia are working on ways to
eventually settle their trade with the Chinese yuan
and Russian ruble, senior government officials from the two countries said.
Geithner: US Wants Bigger
Role for China in IMF
(AP, Sep. 24, 2009) Treasury Secretary Timothy Geithner says the U.S.
supports China's
bid for greater voting rights in international organizations like the IMF and
the World Bank.
China to Issue
Yuan-Denominated Bonds in Hong Kong
(New York Times, Sep. 9, 2009) The Chinese Ministry
of Finance said that it would issue 6 billion yuan
worth of government bonds in Hong Kong, a
major step to internationalize its currency at a time of concern about the
dollar.
China Urges Responsible U.S.
Policy, Stable Dollar
(Reuters, Jul. 22, 2009) China will again press the United States at high-level talks next week to
protect Beijing's extensive U.S.
investments by pursuing sound policies and keeping the dollar stable, a
senior official said.
Russia, China to Promote
Ruble, Yuan Use in Trade
(Bloomberg, Jun. 17, 2009) The leaders of Russia and China agreed to expand use of the
ruble and yuan in bilateral trade to lessen dependence
on the U.S. dollar.
Yuan May Be Reserve Currency
by 2020—China Official
(Reuters, May 20, 2009) In the latest
advertisement of China's currency ambitions, an official suggested that the yuan could make up more than 3 percent of global foreign
exchange reserves by 2020.
China to Boost IMF Funding
through SDR Bond
(Reuters, May 10, 2009) China will invest in a bond
denominated in Special Drawing Rights (SDRs) as
part of efforts to increase the resources of the International Monetary Fund,
a senior central bank official said.
Economist React: China-Japan
Currency Pact By Bob Davis
(China Real Time Report, Dec. 27, 2011) What does a more muscular yuan mean for the global economy? Here are views of three
prominent economists.
Japan, China Deepen
Financial Ties By Takashi Nakamichi and Lingling Wei (Wall Street Journal,
Dec. 25, 2011) The Chinese and Japanese governments unveiled a broad,
innovative package of financial agreements designed to tighten ties between
the world's second and third largest economies, moves that could elevate the yuan's status as an international currency.
The Future of the Yuan By Sebastian Mallaby and Olin Wethington
(Foreign Affairs, Dec. 15, 2011) The emerging
narrative about the yuan’s ascendance is mostly
wrong. The global rise of China’s
currency will be slower than commonly predicted, and the yuan
is more likely to assume a place among secondary reserve currencies than it
is to displace the dollar as the dominant one.
Dual Exchange-Rate Regime
for China? An Historical View By
Andrew Browne (China Real Time Report, Nov. 10,
2011) Among the newest generation of Chinese economic modernizers, many of
them clustered around central bank Gov. Zhou Xiaochuan,
the hope is that the internationalization of the Chinese currency will
kick-start a broader reform process.
The Renminbi: The Political
Economy of a Currency By Arthur Kroeber (Foreign Policy, Sep. 7, 2011) China's exchange-rate policy is
deeply linked to long-term development goals.
The same suspicion of market forces that
leads Beijing to pursue an export-led growth
policy also means that Beijing
is unlikely to be willing to permit the financial market opening required to
make the RMB a serious rival to the dollar as an international reserve
currency.
Why China May Let the Yuan
Rise By
Martin Feldstein
(Project Syndicate, Aug. 26,
2011) There are two fundamental reasons why Beijing might choose such a policy:
reducing its portfolio risk and containing domestic inflation.
Taiwan: Why Can’t We Be a
RMB Hub? By
Robin Kwong
(beyongbrics,
Aug. 18, 2011) China vice
premier Li Keqiang’s visit to Hong Kong has
stirred excitement not only in the city but also in Taiwan, where an increasing number of people
are asking: why can’t Taiwan
be a renminbi trading hub too.
China, with Much to Lose,
Largely Silent on Debt Talks By Keith B. Richburg (Washington Post, Jul. 23, 2011)
As the largest foreign holder of U.S. dollar debt, China has much to lose in the
event of an American default. But with the default deadline just over a week
away and negotiations in Washington
seemingly at an impasse, the Beijing
government and the state-run media have been largely silent.
RMB’s Bumpy Road Ahead By Yu Yongding
(China Daily, Jun. 13, 2011) With an undervalued exchange rate and strong
expectation for the RMB to appreciate in the future, foreign importers of
Chinese products refuse to use the RMB to settle transactions, while foreign
exporters are happy to accept RMB. As a result China ends up with more
foreign-exchange reserves.
Once Again, U.S. Finds China
Isn’t Manipulating Its Currency
By Binyamin Applebaum
(New York Times, May 28, 2011) The Obama administration said that China
was not manipulating the value of its currency, choosing once again to avoid
any escalation in the long-running trade dispute between the two countries.
China Should Use Currency to
Curb Inflation, Government Researchers Say (Bloomberg, Apr. 22, 2011) Two prominent Chinese state
researchers added to calls for the government to use the yuan
to help curb inflation that accelerated to a 32-month high in March.
Finding the Next Step for
China’s Yuan Policy By Yu Yongding
(Caixin Online, Apr.
20, 2011) China has to choose between two evils: the temporary but, possibly,
sharp pain from significant appreciation of the yuan,
or more accumulation of foreign exchange reserves, leading to much higher
public losses in the future.
Now, Will China Get It?
(Editorial, Nov. 13, 2010) Internal economic
pressure may finally force Beijing
to let the value of its currency rise. That would be good for the United States economy, the global economy and China’s
economy.
As U.S. Pushes China on
Currency, Small Manufacturers Say They’re Already Hurting By
Keith B. Richburg (Washington
Post, Oct. 31, 2010) The small-scale manufacturers and wholesalers say the
currency has already shifted too much. And their concerns are at the heart of
Beijing's
reluctance to take more dramatic action.
And a Pricier Renminbi
(Editorial, New York Times, Oct. 17, 2010) Other
developing countries with stronger economies and higher inflation, like Brazil, would be faced with the same choice as
China:
inflation or letting their currencies rise. That would be painful. But if the
United States
slips back into recession, it will be devastating for world growth, including
their own.
Once a Winner, China Sees
Globalization’s Downside—Part I
By David Dapice (YaleGlobal,
Oct. 11, 2010) China angered its trade partners: Other nations, distraught
about unemployment and eroding export markets, can no longer tolerate China’s
rising trade surplus and urge the export giant to lift currency controls.
Currency Rift with China
Express Shifting Clout By Sewell Chan
(New York Times, Oct. 11, 2010) The financial
crisis has shifted influence from the richest powers toward Asia and Latin America, whose economies have weathered the
recession well.
I.M.F. Doesn’t Press China
on Currency By Sewell Chan
(New York Times, Oct. 10, 2010) The world’s
financial leaders failed to reach agreement on how to contain an escalating
currency dispute that has threatened to undermine global cooperation on
economic recovery.
U.S. Ramps Up China Currency
Fight By Howard Schneider
(Washington Post, Oct. 7, 2010) The Obama
administration is trying to escalate international pressure on China to change how it manages its currency,
casting a global focus on what U.S. officials say has become a
major risk to the economic recovery.
More Countries Adopt China’s
Tactics on Currency By David E. Sanger and Michael Wines (New York
Times, Oct. 4, 2010) A growing number of countries are
retreating from some free-market rules that have guided international trade
in recent decades and have started playing by Chinese rules.
Beyond Brinkmanship: A
Better Economic Path for the U.S. and China By
Mohamed A. El-Erian
(Washington
Post, Oct. 1, 2010) It is in both nations' interest to resist the attraction
of brinkmanship, which serves only very short-term and narrow domestic
interests and does little to address genuine economic challenges.
A Message for China
(Editorial, New York Times, Oct. 1, 2010) A more
effective strategy would be to muster the support of the many other countries
whose manufacturing industries have been mauled. China needs to hear and see that
its currency policy is a global problem that is undermining the global
influence it so clearly desires.
Congress Likely to Urge
China to Raise Its Currency By Sewell Chan (New York Times, Sep. 29, 2010) The House is expected to give the
Obama administration another tool in its diplomatic pouch to pressure China
to let its currency rise in value.
The U.S.-China Exchange Rate
Squeeze By Sewell Chan
(New York Times, Sep. 19, 2010) Anger over China’s
exchange-rate policy nearly boiled over in Congressional hearings last week.
Treasury Secretary Timothy F. Geithner accused China
of violating international norms. President Obama plans to press the currency
issue at the Group of 20 summit meeting.
Strong Yuan: Good for Poor
Nations? By Dani Rodrik
(Project Syndicate, Sep. 14, 2010) Perhaps we
should not hold China
responsible for taking care of its own economic interests, even if it has
aggravated in the process the costs of other countries’ misguided currency
policies
U.S. Trade Decision Avoids
Clash Over China’s Currency By Howard Schneider (Washington Post, Sep. 1, 2010) The Commerce Department
sidestepped a clash with China
over that country's currency policies, ruling that the value placed on the yuan could not be considered a direct subsidy to Chinese
exporters.
China’s Investing Turns to
Neighbors By Aaron Back and Dinny McMahon (Wall
Street Journal, Aug. 19, 2010) Data shows China has stepped up its buying of
Japanese government bonds, and evidence has emerged that the country is also
buying more South Korean debt. And on Thursday, China added the Malaysian ringgit
to a small group of currencies it allows to be traded directly against the yuan.
Rise in Value of Currency to
Be Slow, China Insists By Keith Bradsher (New York Times,
Jun. 20, 2010) A day after announcing that it would allow a more flexible
currency, China said that any appreciation in its value would be gradual.
Private Efforts Help Resolve
Public Tensions Between U.S. and China By
John Pomfret (Washington
Post, Apr. 10, 2010) The lessons from the three months of tension with Beijing are unclear. China's reaction to the Taiwan arms sale could have scared the
administration off any subsequent plans to provide Taipei weapons, including a batch of 66 F-16 fighters. But it also might have
prompted the administration to conclude that China's reaction was not that
unusual.
China Seems Set to Loosen
Hold on Its Currency By Keith Bradsher (New York Times, Apr. 9, 2010) The Chinese government is
preparing to announce in the coming days that it will allow its currency to
strengthen slightly and vary more from day to day, people with knowledge of
the emerging consensus in Beijing
said.
Geithner to Visit China, in
Sign of Warming Relations By Vikas Bajaj and Keith Bradsher (New York
Times, Apr. 8, 2010) In a sign of improving economic relations between the
United States and China, Treasury Secretary Timothy F. Geithner
will meet the Chinese vice prime minister in Beijing on his way back to the
United States from India.
Coming Visit May Signal
Easing by China on Currency By Vikas Bajaj (New York Times,
Apr. 2, 2010) Eswar S. Prasad of Cornell said that
one of the most compelling reasons for China to change its currency policy
was that it limited Beijing’s ability to manage its economy.
China’s Not-So-Fair Trade By
Nouriel Roubini
(Forbes, Apr. 1, 2010) Every year the U.S. bases the decision of whether to label China
a currency manipulator more on politics than on economic facts. This year
several factors have increased the likelihood that China will be branded a currency
manipulator.
The World Needs Rebalancing,
Not China Alone By Jeffrey E. Garten (YaleGlobal,
Mar. 22, 2010) Most important is for the US and China to understand each
other’s constraints and goals – in many ways the goals of both countries
revolve around employment, even if the manner to achieve such an end is vastly
different.
Obama Urged to Act on
China’s Currency Manipulation
By Howard Schneider (Washington Post, Mar. 26, 2010) Pressure is mounting on the
Obama administration to take action against China for undervaluing its
currency.
U.S.-China Trade Is Win-Win
Game By Zhong Shan
(Wall Street Journal, Mar. 26, 2010) A sound and
stable China-U.S. economic and trade relationship is more important than
ever. China-U.S. trade and economic cooperation has generated huge and real
benefits for the United States,
while China
has been gaining a lot from it as well.
Battle Between the US and
China Over the Yuan Hotting Up
By David Uren (The Australian, Mar. 22, 2010) The battle between the US
and China
over exchange rates is getting dangerous. And there is no sign that either
side is interested in using the G20 to mediate -- the Australian government's
strong preference.
A China-U.S. Reckoning By
Nouriel Roubini, Rachel Ziemba and Adam Towle (Forbes, Mar. 18, 2010)
The fault lines in the U.S.-China relationship have been increasingly exposed
in recent weeks, with rhetorical barbs exchanged on many issues, especially
exchange rates.
Will China Listen?
(Editorial, New York Times, Mar. 17, 2010) The
drumbeat of complaints in Washington about China’s
manipulation of its currency might lead one to think that this is just an
American problem. It isn’t.
Newly Powerful China Defies
Western Nations with Remarks, Policies By
John Pomfret
(Washington Post, Mar. 15, 2010) China's government has embraced an
increasingly anti-Western tone in recent months and is adopting policies
across a wide spectrum that reflect a heightened fear of foreign influence.
China Uses Rules on Global
Trade to Its Advantage By Keith Bradsher (New York Times,
Mar. 15, 2010) With China’s exports soaring, even as other major economies
struggle to recover from the recession, evidence is mounting that Beijing is
skillfully using inconsistencies in international trade rules to spur its own
economy at the expense of others.
Taking on China By
Paul Krugman
(New York Times, Mar. 15, 2010) Tensions are
rising over Chinese economic policy, and rightly so: China’s policy of
keeping its currency, the renminbi, undervalued has
become a significant drag on global economic recovery. Something must be done.
China Signals Defiance on
U.S. Relations By Andrew Batson, Terence
Poon and Shai Oster (Wall Street Journal, Mar. 7, 2010) China
gave little hope that it would accommodate Washington on Iran and other thorny
foreign-policy issues, despite the first real sign of flexibility in years
over its exchange rate.
U.S. Officials Hopeful China
Will Make Concessions on Currency By
John Pomfret
(Washington Post, Feb. 5, 2010) Treasury Secretary Timothy F. Geithner said that he believed China would allow its currency to
appreciate vis-à-vis the dollar.
Currency Dispute Likely to
Further Fray U.S.-China Ties By Mark Landler (New York Times, Feb. 4, 2010) The Obama administration is
reviving American pressure on China
to stop artificially depressing its currency, a policy that fuels its
persistent trade gap with the United
States.
History Smiles on Ambitious
Yuan By Barry Eichengreen
(Taipei Times, Nov. 29, 2009) Can the yuan become a major international currency in as little
as a decade? Only time will tell. But US history suggests that this
schedule, while ambitious, is not impossible.
Is China Ready to Challenge the Dollar? By
Melissa Murphy and Wen Jin Yuan (PacNet #72, Pacific Forum, CSIS, Nov.
5, 2009) It would be a mistake to conclude that China is ready to ditch the
dollar anytime soon, let alone supplant the dollar’s reserve role with the reminbi.
Q+A-What Do China and the
IMF Want from Each Other? By Simon Rabinovitch (Reuters, Oct. 7,
2009) Efforts to repair strained ties between China
and the International Monetary Fund made headway at the IMF's semiannual
meetings this week in Turkey.
China’s Push for Power Is
Irresistible By David Prosser
(Independent, Oct. 7, 2009) The scene is set. China – and others – have
wanted to wrest power from the US. Soon they'll have the
economic clout to achieve their goal. Robert Fisk: A Financial Revolution
with Profound Political Implications
China Calls Time on Dollar
Hegemony By Ambrose Evans-Pritchard
(Telegraph, Oct. 6, 2009) You can date the end of
dollar hegemony from China's
decision last month to sell its first batch of sovereign bonds in Chinese yuan to foreigners.
China Thinks the Washington Consensus Is Dead! By
Laurence Brahm (PacNet #65, Pacific Forum, CSIS, Sep. 29, 2009) China
has given the developing world a new response profile. Rather than argue with
the IMF policy, make the IMF your debtor.
How China’s Yuan Can Become
a Global Currency By Friedrich Wu
(BusinessWeek, Sep. 15,
2009) While chances are good that the yuan will
evolve into a regional currency in the next few years, China is in no
position to challenge the preeminent role of the U.S. dollar in the near
future, despite some worries in the U.S.
Replacing the Dollar:
China’s Big Plans for Its Currency By
Michael Schuman (Time, Jul. 20, 2009) China's
motivations to boost the global standing of the yuan
stem from the same concerns as its calls for a new reserve currency. Greater
use of the yuan in trade would improve the
competitiveness of Chinese exporters by reducing transaction costs and
currency risks.
Yuan Deposes Dollar on China
Border in Sign of Future
(Bloomberg, Jul. 8, 2009) China expanded yuan
settlement agreements last week from border zones to its largest financial
centers, including Shanghai, Guangzhou
and Hong Kong. The program is being rolled
out across Malaysia, Indonesia, Brazil
and Russia,
all nations seeking to reduce the dollar’s role as the linchpin of world
finance and trade.
China Reassures on Dollar
Debate Before G8 By Silvia Aloisi and Anna Willard (Reuters, Jul. 5, 2009) France and Russia urged a debate about
the world's reserve currencies, but China said the dollar would keep its
pre-eminence for "many years to come."
China Has ‘Grand Scheme’ for
Yuan’s Role, Prasad Says
(Bloomberg, Jul. 3, 2009) China’s call for a new
world reserve currency is part of a “grand scheme” to reduce the dollar’s
dominance and increase the yuan’s role, said a
former senior International Monetary Fund official.
The Yuan Lies in Waiting By
Francesco Sisci
(Asia Times, Jun. 18, 2009) Pundits in China
are scratching their heads over the future of their currency, the yuan, which has been brought to the fore by the present
financial crisis.
China Willing to Buy As Much
As $50 Billion in IMF Bonds By Andrew Batson (Wall Street Journal, Jun. 6, 2009) China said it is willing to buy
as much as $50 billion in bonds issued by the International Monetary Fund,
part of a deal made by the world's major economies earlier this year to boost
the resources the global agency has to combat financial crises.
International Monetary
Reform and the Future of the Renminbi By
Pieter Bottelier
(China Brief, Jamestown Foundation, May 27, 2009) It seems likely that the
financial crisis will lead to more hedging by Beijing of the U.S. dollar
through increased international use of the RMB and accelerated movement
toward full RMB convertibility.
Beijing’s Would-Be Houdinis By
Sebastian Mallaby
(Washington
Post, May 26, 2009) It is easy to appreciate China's sudden appetite for bold
new ideas about international finance. But Beijing's leaders look less like the
architects of a new Bretton Woods than like
aspiring Houdinis.
Brazil, China Plan to Trade
without Dollars Is ‘Pure Idle Talk’ By
Febiola Moura (Bloomberg, May 21, 2009) China and Brazil’s proposal to abandon
the dollar for bilateral trade and use yuan and reais instead is “pure idle talk,” former Brazilian
central bank President Gustavo Franco said.
China Tries to Wriggle Out
of the US Dollar Trap By Wenran Jiang
(YaleGlobal, Apr. 29,
2009) China is employing a multi-pronged approach to reduce its US dollar
exposure by seeking to foster greater use of its domestic currency, the RMB,
in trade agreements and by making purchases or direct investments in natural
resources and hard assets.
China Steps Up to World
Stage, Cautiously By Francois Godement
(YaleGlobal, Apr. 24,
2009) China
acted in a manner which has become hallmark of its behavior: guarded,
pragmatic, and ambiguous. Expecting anything different was a miscalculation.
And expecting a major change in China’s stance in the near term
is likely to be wrong too.
China Uses Global Crisis to
Assert Its Influence By Ariana Eunjung Cha (Washington Post, Apr. 23, 2009) Overseas aid and loans are just
one way China is asserting itself in its new role as a world financial
leader. While polishing China's
own image, Premier Wen Jiabao
and other top leaders have blamed the West for the global economic crisis.
China’s Rise is America’s
Decline By Martin Jacques
(Guardian, Apr. 23, 2009) Beijing
is becoming increasingly assertive on global finance and economics — and the US
will be the loser.
China Takes a Small Step
Away from the Dollar By Neel Chowdhury
(Time, Apr. 6, 2009) "A lot of this is
symbolic." "China
wants to be a player." And one sure way to be a player, as everyone
knows, is to threaten to quit the game.
China’s Yuan Ambitions By
Ben Simpfendorfer
(Wall Street Journal Asia, Apr. 5, 2009) Beijing has signed
currency swap agreements with six central banks. China has long wanted its
currency to play a more important role in the global financial system, and
these swap arrangements come in the context of that broader policy aim.
China’s Dollar Trap By
Paul Krugman
(New York Times, Apr. 3, 2009) Mr. Zhou’s speech
was actually an admission of weakness. In effect, he was saying that China
had driven itself into a dollar trap, and that it can neither get itself out
nor change the policies that put it in that trap in the first place.
China Takes Stage as Global
Economic Power By Michael Wines and Edward Wong (New York Times,
Apr. 2, 2009) As Presidents Hu Jintao
and Obama had their first meeting on the sidelines of the summit proceedings,
the Chinese appeared torn between seizing their moment in the geopolitical
spotlight and shying from it.
Asia Split Over China’s “War
of Nerves” with U.S. By Tetsushi Kajimoto and Yoo Choonsik (Reuters, Mar. 31, 2009) Asian policymakers are preoccupied with
China's "war of nerves" over the U.S. dollar's global status rather
than the impact of the Fed's debt buying on their vast dollar-linked savings,
officials told Reuters.
China Challenges US Global
Financial Leadership By Elaine Kurtenbach (AP, Mar. 28,
2009) The only major economy still growing at a fast clip, China is being unusually
forthright in challenging the U.S.-led global order ahead of an April 2
summit on the financial crisis.
China Rises Again—Part I By
Wang Gungwu
(YaleGlobal, Mar. 25,
2009) Wang predicts that modern Chinese leaders will rely on ancient
principles to achieve timeless goals: the economic global can serve as a
means in establishing a prosperous and powerful state that wields global
influence.
Meltdown 101: Will China
Global Currency Idea Fly? By Christopher S. Rugaber (AP, Mar. 24, 2009) China's
central bank has called for the creation of a new global currency as an
alternative to the dollar, in the latest sign of that country's growing
assertiveness on the international stage. But would the idea even work?
China Urges New Money
Reserve to Replace Dollar By David Barboza (New York Times, Mar.
24, 2009) In another indication that China is growing increasingly
concerned about holding huge dollar reserves, the head of its central bank
has called for the eventual creation of a new international currency reserve
to replace the dollar.
China Losing Taste for Debt
from the U.S. By Keith Bradsher
(New York Times, Jan. 8, 2009) The declining
Chinese appetite for United
States debt, apparent in a series of hints
from Chinese policy makers over the last two weeks, comes at an inconvenient
time.
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