Follow the Debate - Yuan Revaluation and Internationalisation News Archive December 2010
Follow the Debate
Yuan Revaluation & Internationalisation
You can scan the Articles over time and see it evolve and change
Graeme has been using ChinesePod since 2007
"I highly recommend ChinesePod, I haven't found any Online teaching programmes that come close."
The Wall Street Journal 29/12/2010
No Easy Ride for Yuan Through Hong Kong
When is a yuan not a yuan? When it is in Hong Kong.
Bankers are giddy with excitement over the recent liberalization of trading in the Chinese currency in Hong Kong, even raising notions that a flood of yuan into the city will erode the logic behind the Hong Kong dollar's peg to the greenback.
It is unlikely the territory's vaunted peg—in place since 1983—is going anywhere soon. Hong Kong Monetary Authority Chief Executive Norman Chan has four criteria before Hong Kong will switch currency allegiances. These include an open capital account in China, a freely convertible currency, a mature ...
China Daily 28/12/2010
Stabilizing prices to be put in prominent position
BEIJING -- The People's Bank of China (PBOC), the country's central bank, reaffirmed Monday that it would give more prominence to stabilizing prices, and implementing a prudent monetary policy during the next year.
Further, China will make its monetary policies more targeted, flexible, and effective, employing multiple monetary tools to control liquidity and guide the credit growth back to a normal level, said an online statement summarizing a meeting of the PBOC's monetary policy committee.The statement came one day after the 25-basis-point interest rate hikes went into effect on Sunday.
More credit should be channeled into the real economy, especially into programs concerning agriculture, the countryside, farmers, and medium-sized and small enterprises, to help promote the strategic and economic restructuring, the statement said.
Those attending the meeting also agreed to further improve the yuan exchange rate formative mechanism, and to keep the yuan exchange rate "basically stable at a reasonable level."
An upward momentum in China's economy has been further consolidated, but the country also faces tough tasks in controlling credit and liquidity growth as well as warding off financial risks.
The Wall Street Journal 27/12/2010
New Insight On Offshore Yuan Demand
Beijing isn’t taking any chances with its new offshore yuan market and is keeping control of how much of the currency it allows to flow overseas. New data from the Bank for International Settlements may give an indication of why.
The Wall Street Journal 24/12/2010
Yuan's Role Grows in Hong Kong
NEW YORK—Six months after China pledged to increase the flexibility of the yuan exchange rate versus the dollar, there are fresh signs that it is gradually moving closer to a more international role for its currency.
On Thursday, the Hong Kong Monetary Authority said yuan deposits in the city surged to 280 billion yuan ($42.12 billion) at the end of November from 217 billion yuan in the previous month, a sign of strong demand for the Chinese currency in Hong Kong and of a convergence between the territory's open financial system and the mainland economy. HKMA Chief Executive Norman Chan ...
Caixin Online 22/12/2010
Forex Purchasing Pace Slows Down
Analysts say the November figure shows that China still faces strong pressure from hot money inflows
(Beijing) -- The People's Bank of China spent an additional 319.6 billion yuan in November purchasing foreign currency to pay Chinese exporters and foreign investors, according to an update posted on the website of the central bank.
The Wall Street Journal 17/12/2010
Don’t Expect Big Movement on Yuan
A big movement in the yuan exchange rate would have a large impact on China’s economic and financial stability next year, so maintaining the basic stability of the yuan exchange rate “is of great significance,” the Chinese central bank-run Financial News said in a commentary Thursday.
China Daily 16/12/2010
US high-tech export curbs 'cause of deficit'
BEIJING - Restrictions on high-tech exports to China, rather than the Chinese currency, are the "major source" of the US trade deficit with China, the Ministry of Commerce (MOC) said on Wednesday.
The ministry said that China will bring the issue to the negotiating table during the two-day China-US Joint Commission on Commerce and Trade to be held in Washington.
The ministry also said it would give a commitment to boost imports to help balance trade next year.
Earlier this week, two US senators said they are seeking legislation to place high duties on Chinese exporters in response to what they call China's "undervalued currency".
The US also said it will raise the currency issue during the China-US meeting on Wednesday.
"The US politicians' frequent arguments of proposing legislation is based on inaccurate analysis and non-objective evaluation," said ministry spokesman Yao Jian.
The major reason behind the trade imbalance is "US export control", Yao said.
It is estimated that only 7 percent of China's high-tech imports, in terms of value, are from the US.
Many economists also echoed the ministry's view.
Kaixin OpEd - This is a key issue in the Yuan Debate.
See Kaixin's - YUAN REVALUATION & INTERNATIONALISATION
VIDEO - Interview with US think tank
The United States and China are at a point to establish a new collaborative relationship to deal with the possible conflicts emerging between the two big economies which happen to be two big militaries in the world, said US think tank analysts during interview by China Daily.
The New York Times 15/12/2010
Russian Exchange to Swap Rubles and Renminbi
MOSCOW — Russia and China are poised to take a small but symbolic step in their expanding economic relationship, a move that in the long term could make the dollar less relevant to business between the two nations.
On Wednesday, a Moscow securities exchange is scheduled to open direct trading between the Chinese currency, the renminbi, and the Russian ruble.
Kaixin OpEd – It’s interesting that Russia and China are back together again.
In Kaixin’s opinion, the reason America established relations with China in the 1970’s was to stop the USSR and Communist China forming an alliance.
China has used access to America’s markets to build it wealth base.
America defeated the USSR – the reasons are various.
Russia embraced capitalism, but has found it not quite what anyone expected.
Russia and China are natural allies.
A touch ironic, really, isn’t it ….
The Wall Street Journal 15/12/2010
China Experiments Offshore
How do you take a currency from a developing economy and, without making it freely convertible, turn it into a global reserve currency? No one really knows, but China is currently writing the handbook.
Kaixin OpEd – Kaixin has been saying this for some time now. In effect, China will do it China’s way.
America is like a big naïve friendly teenager (with a temper) giving advice to a patient old man on this issue and many others.
America is so sure it has found the right way that it cannot conceive that there may be any other way. Sounds like a teenager, doesn’t it.
China Daily 14/12/2010
Eximbank to push internationalization of Renminbi
BEIJING - The Export-Import Bank of China (China Eximbank) said Monday it would push for a more internationalized Renminbi over the next five years and enhance the role of the Chinese currency in cross-border trade settlement.
Since 2007, China Eximbank has begun selling yuan-denominated bonds in Hong Kong to boost the pricing of Chinese goods and services in international trade.
Overseas demands for Renminbi-related products have been increasing in recent years after China took measures, such as signing currency-swap agreements with foreign countries and allowing yuan-denominated bond sales overseas.
To date, Chinese lenders, including China Eximbank, have sold more than 50 billion yuan (about $7.5 billion) worth of yuan-denominated bonds in the Hong Kong market.
Earlier this month, China's central bank expanded its trial program for cross-border yuan trade settlement to 67,359 exporters from the previous 365 firms, beginning on December 3 this year.
The Wall Street Journal 13/12/2010
Walking Fine Line on Hong Kong's Yuan Trade
These days, few subjects excite bankers in Hong Kong more than the importance of the budding new offshore trade in China's currency here.
The Wall Street Journal 11/12/2010
HKMA: Yuan Quota Talks Moving in 'Right Direction'
HONG KONG—Negotiations with authorities in China are "moving in the right direction" to set a key yuan quota for next year, said Hong Kong's top central banker.
In an interview Friday, the Hong Kong Monetary Authority's chief executive Norman Chan also said that China's biggest policy bank would be issuing billions more in Hong Kong yuan-denominated debt, or "dim sum bonds."
Hong Kong has become the center for a flourishing trade in China's currency since key limits were lifted on the tightly controlled yuan this summer, the first time Beijing has ...
China Daily 11/12/2010
Rise in imports helps shrink trade surplus
BEIJING - China's trade surplus in November shrank compared to the previous month but was still around $23 billion, with imports and exports both hitting record highs.
Economists said the nation's surplus is likely to go on shrinking in the long term, even though it may remain above $20 billion for a while, suggesting China should resist pressure from some countries to allow its currency to rise sharply.
The latest figures were in line with policymakers' efforts to ensure the country's economic growth is balanced and were released as the three-day Central Economic Work Conference kicked off on Friday. The session will set the tone for next year's economic policymaking.
The nation has decided to make its foreign trade more balanced with more measures taken to increase imports. Top commerce officials expect the trade surplus to fall next year, which analysts said will help alleviate outside pressure for yuan appreciation.
The Wall Street Journal 10/12/2010
Bringing Balance To Cross-Border Yuan Settlement
The yuan has been gushing offshore in recent months as trade settlement using the currency has taken off, but the net outflow may be poised to start moderating.
Allowing more importers than exporters to settle in yuan makes a lot of sense up to a point.
The Sydney Morning Herald 9/12/2010
China to markets: don't bet on the yuan - yet
If earlier doubts about China's commitment to make the yuan a global currency were misplaced, the current excitement is more than a little bit overdone.
Beijing's strategy for the next few years can be summed up quite simply: Dear foreigners, please use our currency, but not as a way to profit from our country's growth.
Kaixin OpEd - A good infored article.
China Daily 7/12/2010
China expands int'l yuan trade settlement trial firms
BEIJING - China's central bank said late Monday that it had expanded a pilot program for cross-border yuan trade settlement to 67,359 exporters from the original 365 firms.
The Wall Street Journal 7/12/2010
Yuan-Ruble Trades to Start in Moscow Next Week
MOSCOW—Preliminary trade for the yuan-ruble pair will begin on Moscow's Micex exchange next week, with China looking to use rubles to pay for Russian timber, seafood and coking coal as the two countries seek to strengthen currency ties while sidestepping the dollar.
The Micex will trade three million yuan ($450,000) daily starting Dec. 15, officials at the country's largest market by volume said Monday at a Moscow conference dedicated to ruble-yuan trade. Trading ...
Caixin Online 7/12/2010
Of Two Evils, Choose the Lesser
Decision-makers must think twice before deciding to replace inflation with appreciating yuan or vice versa
Barrons, a Caixin blogger, always speaks with numbers. In the first of two recent entries, he wrote thatM1,M2 and oil prices affected 55 percent of consumer price index changes over the past decade. He went on to say in a second post that the rise of China's foreign exchange reserves over the past decade can justify 98 percent of M2 changes, while a U.S. dollar exchange shift can rationalize 78 percent of oil price fluctuations.
Caixin Online 3/12/2010
Hot Money Blamed for Surging Yuan Settlements
Currency speculators apparently hijacked a pilot program in Hong Kong designed to promote yuan-based trade settlements
Central bank officials were surprised to hear October 27 that the yuan trade settlement quota for the entire year had already been reached.
Asia Times Online 2/12/2010
Currency clash has two sides
By Kieran Osborne
Complaints out of the United States that China is manipulating its currency tend too often to be little more than political posturing. Yet the issue, just as with every coin, has two sides - and the lack of balance has implications for investors.
Caixin Online 2/12/2010
8 Billion Yuan Bond to Be Issued in Hong Kong
The finance ministry will issue another batch of yuan-denominated bonds
(Beijing) - China's Ministry of Finance will issue 8 billion yuan of yuan-denominated bond in Hong Kong, the second yuan bond issuance outside of the mainland by the ministry.
The Wall Street Journal 2/12/2010
Yuan Deposits on a Roll
For even more indication that there’s no stopping the demand for yuan in Hong Kong, Hong Kong Monetary Authority data show that yuan deposits here grew 45.4% in October from the month before to 217.1 billionyuan ($32.59 billion).
The Wall Street Journal 1/12/2010
Inflation Adds to Pressure for Stronger Yuan
Official Worries About Rising Prices Will Push Policy Makers to Allow Chinese Currency to Rise, Some Economists Say
BEIJING—In the complicated cocktail of policies China has pursued in recent weeks to tackle an unwanted burst of inflation, one ingredient has been missing: a stronger yuan. But economists think that is likely to change.
China Themes
Yuan Revaluation & Internationalisation
Graeme has been using ChinesePod since 2007
"I highly recommend ChinesePod, I haven't found any Online teaching programmes that come close."
Set in Zanzibar in 1910, it is the story of two people from different worlds falling in love. Susan immerses herself in Zanzibar. Asim falls in love with this woman from the nation that killed his wife. Susan is a spy. Asim is the chief advisor to the Sultan of Zanzibar. Germany and France are holding secret negotiations to form a Pan European alliance, which would isolate Britain and destroy her power. Susan and Asim are caught up in all this and their love is finally dashed on the cold, hard reality of international high politics.
Available on Amazon's Kindle $4.99 - Over 400 Pages
Chapter One
Zanzibar
'A maharaja’s ruby cast on a Persian carpet by the blackest of hands'
Their souls danced, honouring his promise.
The ancient dhow stirred in the soft morning breeze. Like a sleepy lion, it began to move through the water, snuffling about the other boats on the harbour; some scurrying, some at anchor, some darting before a brief gust of wind. The lateen sails a bustling panorama of blood-red and sun-bleached white.
Aft, the woman's eyes searched the skyline, drinking in the architecture of Stone Town, the heart of Zanzibar; its jagged, cluttered silhouette so familiar, so much a part of her soul.
Abruptly, her eyes ceased their restless searching, jagged by an invisible hook, transfixed by the grand buildings on the northern shore, Beit-al-Ajaib, the House of Wonders, Palace to the great Sultan of Zanzibar. The distinctive architecture captured in the tropical light: coconut white outlined by contrasting shadow plays of pepper black.
A smile, ever so slight, started to play on the edge of her mouth then disappeared. A memory that should have been fond instantly turned to sharp unbearable pain. Her eyes hardened and moved on.
Without warning the captain threw the rudder over. Stumbling, the woman barked her shin on a wooden box, a rough-hewn coffin. She recoiled, knocking over an untidy stack of cane baskets. Imprisoned in the baskets, rusty cockerels, their scruffy heads straining through the latticework, snapped at her, cried out to her; their raucous din overwhelming her, drowning her.
Dimly, through the fog of noise, the strident swearing of the sailors in Kiswahili seeped into her conscious. Understanding, she smiled mirthlessly.
The coffin had been carelessly stowed, a chore, rather than a labour of respect or love.
London 1910
“Hello, who are you? I am Oliver, is Edward at home?”
The words were spoken by a tall, impeccably dressed young man as he rushed into Edward’s flat shaking off surplus water and calling for whisky while shoving his umbrella into a stand. It was a blustery, grey, bitterly cold February afternoon in the heart of London. He brushed a curl of soft auburn hair from his forehead and smiled charmingly.
Susan laughed, her hazel eyes dancing with the exhilaration of the new. “Yes, he is having a bath. I think he is trying to get warm. I’m Susan, Susan Carey, his sister.”
“Ahhh yes, from Australia. How do you do?” said Sir Oliver, smiling broadly and offering his hand. He noticed the laughter in her eyes, and the depth, particularly the depth, intensified by jade flecks that made them striking and alluring. “So, you have arrived, good trip I trust.”
“I am very well thank you, and yes, it was a good trip,” replied Susan.
He laughed and glanced at the sitting room, “whisky?”
“Oh, I’m sorry, please come in…….. that was silly of me, after all, it is your flat.”
Oliver smiled and gestured for Susan to lead the way. He followed her into the room, and after helping himself to a generous portion of whisky, walked over to the fire.
Shortly after, Edward, wrapped in a huge ruby-coloured dressing gown and wiping soap from his ear strode into the room. He was of similar age to Oliver, late twenties, well built, if slightly podgy, with dark auburn hair and a full moustache. Susan looked up and smiled to herself, she could see now where he had picked up some of his new mannerisms.
“Thought I could hear voices. I see you two have met, no need for introductions then.”
As he was speaking, Edward walked to the side table and grabbed a whisky decanter by the neck. He glanced at Oliver who nodded. A long finger snaked into one of the tumblers followed by the distinctive clink of crystal. He swept the decanter off the table and carried it to where Oliver was sitting. After pouring the whisky, he sank into a lounge chair and sipped from his glass, enjoying the warm glow as it spread through his body.
Suddenly he sat up exclaiming, “Sorry sis, would you like something to drink?”
“Kind of you to remember, but no thank you, and yes, Oliver has already inquired.”
Edward nodded and sank back into his lounge chair.
They chatted, tentatively at first, getting to know one another. Edward had not seen Susan for two years and was unsure how his sister would take his new relationship. Oliver was intrigued by Susan. An attractive, self-assured young lady of high intelligence with a degree was a rare find. And, as fate would have it, she was also a trained and experienced teacher. He suggested a picnic at Oxford, which was met with ready acquiescence. Arrangements were made for the following Sunday.
“I’ll see if the Rolls is available,” mused Oliver. “Must ring father, haven’t spoken to him in ages.”
Oliver, Sir Oliver Marchmaine, was an unaffected young man of intense intelligence who saw life as a great adventure to be lived to the full. He was also unyieldingly loyal to his country, England, which is why he had joined Military Intelligence on leaving Oxford.
It was 1910 and Europe was stirring. It was a time full of interest, intrigue and danger. The European chessboard was becoming increasingly complex, the moves more subtle. A time when an unexpected move or feint could have profound consequences.
Regaining her balance, the woman’s eyes were drawn, hesitantly at first, resisting back to Beit-al-Ajaib. She wondered if it was still the same. Still the same centre of power and intrigue that had been so much a part of her life all those years before; that had defined her life.
She remembered those first few moments, remembered standing in the foyer of the palace, .………… remembered the breathtakingly beautiful Persian tapestry ........
The sea breeze stirred her clothes. She smiled a little sadly, and in her mind the tapestry gently swayed. Two small apparitions ran giggling up the stairs: two small exquisitely rich burkas disappearing along the first floor landing. Childish squeals of mischief and joy left in the air.......
“Move to seaward, you accused of Allah! Move!”
Her thoughts were clawed back to the dhow, the captain crashing the tiller over to avoid another boat on the crowded harbour. The woman instinctively ducked her head to avoid the heavy boom as it swung over her, the rusty cockerels squawked their raucous indignation, their heads straining through the latticework, relentless.
The collision avoided, the dhow continued on its way. The cacophony dying down to the occasional command by the captain or the cry of a seagull.
The woman's thoughts returned to Beit-al-Ajaib
…………. laughing and giggling, girls of seven or eight. A door on the first floor slammed and all sounds of them disappeared. Silence. The woman smiled. She could see herself, a young woman, dressed plainly, unselfconsciously, her sexuality tantalisingly just out of reach, hidden beneath the thin veil of her clothing. She remembered standing alone in the foyer, looking around, perplexed. Asim came through a door to the left of the tapestry.
“Salaam.”
The woman started and looked around. Then, realising, was cold again. Alone again. Alone, rocking to and fro to the rythm of the sea. Alone, beside a rough-hewn coffin.
Now Available on Amazon's Kindle $4.99 - Over 400 Pages
Graeme has been using ChinesePod since 2007
"I highly recommend ChinesePod, I haven't found any Online teaching programmes that come close."
