Renminbi

How Will The Digital Renminbi Change China?

While many central banks are still investigating the possibility of issuing a digital currency, China has rolled out a digital currency via a series of pilot programs since last year.

4 May 2021
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China’s Digital Currency Will Rise But Not Rule

A few years ago, China’s currency seemed to be rising inexorably to global dominance. The renminbi had become the fifth most important currency for international payments, and in 2016, the International Monetary Fund (IMF) included it in the basket of major currencies that determines the value of Special Drawing Rights (the IMF’s global reserve asset). Since then, however, the renminbi’s progress has stalled.

26 August 2020
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Who Has The World’s Largest Economy?

The World Bank’s International Comparison Program (ICP) has just released its latest measures of price levels and gross domestic product (GDP) across 176 countries, and the results are striking. For the first time ever, the ICP finds that China’s total real (inflation-adjusted) income is slightly larger than that of the United States (US).

1 June 2020
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The renminbi’s bid for freedom

In early August, the renminbi’s exchange rate broke through the psychological threshold of CN¥7 per United States (US) dollar. While investors were still digesting the full significance of this event, US President Donald Trump’s administration startled the market by labelling China a “currency manipulator.”The designation is absurd, to say the least, because China doesn’t meet the US government’s own criteria for being a currency manipulator.

9 September 2019
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Trump’s currency confusion continues

Next month, the United States (US) Department of the Treasury is due to submit to Congress its biannual report detailing which countries, if any, are manipulating their currencies to gain an unfair trade advantage. For his part, President Donald Trump is already accusing China of doing so, as he did throughout the 2016 election campaign. And he is reportedly trying to influence the Treasury Department’s deliberations.What has changed since the last report in April?

23 September 2018
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Why is the Renminbi depreciating?

China’s currency has started falling again. The last major depreciation of the Chinese renminbi began in the second half of 2015, triggered by a surge in capital outflows. Despite repeated interventions by the People’s Bank of China (PBOC), markets remained frenzied for more than a year. The currency’s value fell to nearly CN¥7 per United States (US) dollar, before stabilizing in early 2017.The latest decline has been even sharper.

30 August 2018
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