Category Archives: People’s Bank of China

Yuan devaluation is market-driven – Ben Cavender

Some see the devaluation of the yuan as a panic measure by the Chinese government to reignite growth, but market analyst Ben Cavender tells the Guardian why the depreciation is mainly market driven, making the yuan freer from the US dollar peg.

Why the devaluation of the yuan is a good idea – Arthur Kroeber

Many analysts tumbled over each other to dismiss China´s record devaluation of its currency. But financial analyst Arthur Kroeber disagrees, and says it is a necessary move to financial reforms in the middle and long term, CityWire writes.

Why the devaluation of the yuan was a bad idea – Tom Doctoroff

If the 2% depreciation of China´s currency has shown anything, it shows its leaders are nervous and loss face, writes author Tom Doctoroff in the Huffington Post. Can China’s growth model be reinvigorated, Doctoroff wonders. Yes, but not by using outdated control mechanisms.

China´s unsustainable debts – Victor Shih

China has accumulated debts US$25 trillion and because of the relative high interest rates, that level of debt is unsustainable, argues financial analyst Victor Shih at the USC U.S.-China Institute. And when China gets into trouble, there is no IMF-style institution with enough capital to save it. A crashing stock market also does not help.

How the Renminbi goes global – Sara Hsu

Step by step, China takes its currency global. The latest move, the launch of the China International Payment System (CIPS) this fall, marks another step forward, writes financial analyst Sara Hsu in the Diplomat.

How to break the lock-down mode – Shaun Rein

China´s much needed anti-corruption drive has now put the country into a lock-down mode, and new projects have halted, tells business analyst Shaun Rein at CNBC. The cut in the reserve ratio ratio (RRR) this weekend is one way for a kickstart, although nobody know what will really work.

Offshore RMB bonds to expand – Sara Hsu

China´s central government is pushing offshore RMB bonds as a tool to support Chinese firms to go abroad. Financial analyst Sara Hsu looks at the current state of offshore RMB bonds, and expects a massive expansion, she writes in the Diplomat.

Reform needed to bolster economy – Sara Hsu

China´s financial authorities have been balancing to keep up with capital flows, massively outward in January. But to bolster services and consumer demand more structural reforms are needed, writes financial analyst Sara Hsu in the Diplomat.

Expected: monetary easing – Sara Hsu

Just like in November 2014, China´s central bank is expected to easy its monetary policies also in 2015 to push economic growth, writes financial analyst Sara Hsu in the Diplomat. More liquidity is needed in the market.

China´s rate cut: weaknesses, but no panic – Shaun Rein

The rate cut by China´s central bank PBOC took the markets by surprise on Friday. Business analyst Shaun Rein sees at CNBC some weaknesses in the countries economy, but no reason for panic. China is moving towards services and innovation, and that transition comes with some bumbs.