Despite the pressure on the depreciation of the yuan, there is no basis for continued yuan depreciation, and China is capable of keeping the currency stable at a reasonable level, central bank vice governor Yi Gang said, adding that China’s high-medium growth and foreign exchange reserves are major factors underpinning the currency.
Advertisement
Eagles CEO Jeffrey Lurie says coach following Chip Kelly needs people skills
By letting Kelly go a week before the end of the regular season, the Eagles will get a head start on their coaching search. Eagles owner Jeffrey Lurie made it official with a letter to season-ticket holders that also served as a news release.
The banks have been banned by the PBoC from settling offshore clients’ yuan transactions in the onshore market until late March, the sources said. The PBOC action involving several foreign banks is seen to stabilise the yuan’s rate and cushion capital outflows due to the yuan’s recent depreciation.
New ‘Star Wars’ movie has record M opening night
The White House got in on the action, too, sharing the stage with a stormtrooper at Friday’s press briefing. Greenfield said the success of ” Force Awakens ” would not offset the impact of subscriber losses at ESPN.
Separately, three financial market sources in Europe said Deutsche Bank was one of the banks to have part of its foreign exchange business in China suspended.
Bill Cosby arraigned on sex assault charge, will remain free on bail
Cosby and he might be brought to justice”, said attorney Joseph Cammarata, who represents seven of the accusers. Formal accusations date back at least 10 years, when Constand went to police with her complaint.
“The PBOC’s move means that the lenders will no longer be able to do arbitrage trades in the onshore and offshore yuan”, said Ken Cheung, a Hong Kong-based strategist at Mizuho Bank Ltd. “This may lead to a widening spread because cross-border flows help narrow the gap”.
On the other side, foreign banks believe that the suspension is deliberately imposed by the central bank as it aims to stabilize the Yuan’s exchange rate.
Demand for dollars in the Chinese foreign exchange market typically rises at the end of a year, and that pushed the Chinese currency to a weaker close on Monday, at 6.4880.
In common with forex markets worldwide, there are no official data on which banks are the most active in trading foreign exchange in China. The suspension notices were delivered to the banks earlier today.
Advertisement
The yuan weakened against the dollar in both onshore and offshore markets on Wednesday, after the central bank set a softer midpoint in the wake of dollar strength. China has scaled back efforts to prop up the yuan after the International Monetary Fund included the currency in its Special Drawing Rights on November 30. The offshore yuan was last trading at 6.5760 a dollar in Hong Kong and the rate in Shanghai was 6.4902, leaving a spread of 858 pips.
