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SHANGHAI China’s government bond yields fell sharply on Thursday after the State Council, the country’s cabinet, said authorities would use timely cuts in banks’ reserve requirement ratios (RRR) to support the economy.
While the cabinet said China would keep monetary policy stable, investors took talk of cuts in RRR – the mandatory reserves that banks have to set aside – as a strong easing signal.
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China’s yuan currency reacted bearishly, weakening by as much as 0.17% to a near one-week low against the dollar.
China Pivots on Central Bank Easing as Fed Heads for Taper
Bloomberg 16 hrs ago Bloomberg News
(Bloomberg) China made a surprise shift Wednesday by signaling the economy needs additional central bank support, a warning for the rest of the world about how circuitous the exit route from the Covid-19 pandemic is proving to be.
The State Council, China’s equivalent of a cabinet, hinted the People’s Bank of China could make more liquidity available to banks to boost lending. It’s a move that puts the PBOC at odds with the U.S. Federal Reserve’s discussions around tapering its bond-buying program, suggesting that monetary policy in the world’s two biggest economies could be headed in opposite directions again.
Central banks up reserves of RMB to a high By CHEN JIA | China Daily | Updated: 2021-07-02 08:12 Share CLOSE
5-year record shows Chinese yuan s internationalization progressing well
Central banks around the world are holding record levels of reserves in Chinese yuan, according to IMF data.
Analysts said the current five-year high marks another step forward for the Chinese currency s internationalization, a process that began a few years back.
In the first quarter this year, various central banks held $287.46 billion worth of Chinese RMB in official foreign exchange reserves, the highest level since the fourth quarter of 2016 and representing 2.45 percent of the total, the International Monetary Fund reported on Wednesday.
Private gauge confirms factories strong in June
1 2021-07-02 08:57:27Xinhua
Editor : Mo Hong e
ECNS App Download An employee works on the production line of excavators at a machinery manufacturing plant in Tai an, Shandong province. (Photo/Xinhua)
A private-sector gauge of manufacturing confirmed China s production activities sustained their solid expansion in June as domestic demand kept rising despite the evolving COVID-19 situation.
And with steady supply matching demand and the job market ever improving, strong drivers of economic recovery in the post COVID-19 era can be anticipated, experts said on Thursday.
The Caixin China General Manufacturing Purchasing Managers Index came in at 51.3 in June, down from 52 in May, yet firmly above 50, the mark that separates expansion from contraction.
Central banks up reserves of RMB to a high
1 2021-07-02 08:56:22China Daily
Editor : Mo Hong e
ECNS App Download
A cashier at a bank in Taiyuan, Shanxi province counts renminbi notes. （Photo/China News Service）
5-year record shows Chinese yuan s internationalization progressing well
Central banks around the world are holding record levels of reserves in Chinese yuan, according to IMF data.
Analysts said the current five-year high marks another step forward for the Chinese currency s internationalization, a process that began a few years back.
In the first quarter this year, various central banks held $287.46 billion worth of Chinese RMB in official foreign exchange reserves, the highest level since the fourth quarter of 2016 and representing 2.45 percent of the total, the International Monetary Fund reported on Wednesday.