People's Bank

Are Markets Efficient? Krugman vs. Kling, by Arnold Kling

EconLog (Free subscription) | 20/11/2009

He says they are : Now, you could and should be worried if this thing looked like a great bubble -- if long-term rates looked unreasonably low given the fundamentals. But do they? Long rates fluctuated between 4.5 and 5 percent in the mid-2000s, when the economy was driven by an unsustainable housing boom. Now we face the prospect of a prolonged period of near-zero short-term rates -- I don't see...

China Online Payment Industry Report 2009

HomeATM (Free subscription) | 20/11/2009

ResearchInChina, the vertical portal for Chinese business intelligence , announces the release of a new report - China Online Payment Industry Report, 2009. For more information, please contact: report@researchinchina.com or at 86-10-82600893. http://www.researchinchina.com/Htmls/Report/2009/5786.html The global economic crisis has impacted on the majority of industries, but China online payment market...

Low rates could discourage financing real economy: China central bank governor

People Daily (Free subscription) | 20/11/2009

Low interest rates, especially the deposit rate, would discourage financial institutions from providing adequate financing to the real economy, Zhou Xiaochuan, governor of the People's Bank of China (PBOC) said Friday. He told the 2009 Business Week CEO Forum in Beijing that low interest rates would reduce pressure on financial institutions, removing incentives to actively provide financial services...

Why China Resists Currency Revaluation

American Power (Free subscription) | 20/11/2009

From the Economist , " China's Currency: A Yuan-Sided Argument ": PRESIDENT BARACK OBAMA, on his first visit to China this week, urged the government to allow its currency to rise. President Hu Jintao politely chose to ignore him. In recent weeks Jean-Claude Trichet, the president of the European Central Bank, and Dominique Strauss-Kahn, the managing director of the International Monetary...

Bolivia approves contract with China for $60 mln loan

People Daily (Free subscription) | 19/11/2009

The Bolivian government on Wednesday approved a supreme decree authorizing a contract with the People's Bank of China, China's central bank for a 60 million-U.S.-dollar loan, which will be used to improve Bolivia's hydrocarbons sector. Bolivian Hydrocarbons Minister Oscar Coca told a press conference in the Quemado Palace that the sum of money will go to the extension of domestic gas networks and the...

China to step up efforts to crack down on bank card crimes

People Daily (Free subscription) | 18/11/2009

The People's Bank of China (PBOC) and the Ministry of Public Security (MPS) have planned a nationwide crackdown on bank card crimes in 2010, the central bank said Wednesday. The crackdown would last for 10 months, starting from January 2010, the central bank said on its website. In the first eight months of 2009, public security departments placed on file 6,362 bank card fraud cases, doubling that...

Chinese Yuan ETF in Focus as the Currency Debate Heats Up

SeekingAlpha ETFs (Free subscription) | 18/11/2009

Michael Johnston submits: President Barack Obama embarked this week on a critical trip to China, seeking to gain support for tougher economic sanctions against Iran during meetings with Chinese President Hu Jintao. But as the U.S. president was setting out to present his case, the controversy over the relative value of China’s currency, a delicate issue for U.S. officials, fired up once again....

China to Set Up Dedicated India Fund

2point6billion.com (Free subscription) | 16/11/2009

Nov. 16 – China will explore the possibility of setting up a dedicated India infrastructure development fund to strengthen its economic and trade ties with the country, a top official of The People’s Bank of China told the Indian newspaper Financial Chronicle in an interview. Referring to the proposal for a dedicated India fund, Ma Delun, [...]

Whither De-Pegging?

iStockAnalyst.com (Free subscription) | 15/11/2009

The biggest topic in the upcoming week will undoubtedly be the escalating debate over whether the People's Bank of China (PBoC) will relent to Obama's persistent pleading, and in addition to de-pegging, allow the renminbi to appreciate against the dollar. The debate is simple: the US needs the dollar to hit the bottom of the currency stack post haste, and for that to happen, China's currency needs...

Spanked

We The Free (Free subscription) | 15/11/2009

clipped from www.forbes.com The showdown between the U.S. and China over money has been brewing for some time. The governor of the People's Bank of China, Zhou Gaoxiong, who rules over China's $2 trillion plus reserves, launched a campaign earlier this year to create a new reserve currency to replace the dollar. (See " Dollar Slams Up Against A (Great) Wall. ") Mr. Zhou, in a March speech,...

China: No Way Are We Going To Break The Yuan Peg

The Business Insider (Free subscription) | 15/11/2009

Contrary to last week's speculation, China insists that it has no plan to let the Yuan slowly appreciate against the US Dollar. Prior to the collapse, the country had allowed incremental strengthening, but in light of the economic weakness, that "glide path" was put on hold. A Yuan peg is consistent with cheap money -- since it essentially means printing enough currency so that the country...

China's B-shares indexes rise to 18-month high

People Daily (Free subscription) | 14/11/2009

China's dollar-denominated B shares at Shanghai Stock Exchange jumped 9.42 percent, or 21.62 points, to 251.19 points, posting an 18-month high. The surge mainly resulted from market expectation of yuan appreciation as the People's Bank of China (PBOC), the central bank, said Wednesday in its quarterly report of monetary policy, for the first time, that the bank would improve the mechanism of the exchange...

• China not to let yuan gain in short term: experts - People Daily
• China not to let yuan gain in short term: experts - Xinhuanet

Possible Chinese Re-valuation: Why Now?

iStockAnalyst.com (Free subscription) | 13/11/2009

Ahead of Obama’s visit to China, the markets have been abuzz with a statement from the People's Bank of China that it will consider “changes in international capital flows and the trends of major currencies”. This is a departure from the broken record mantra of keeping its currency “basically stable at a reasonable and balanced level”. These statements have created speculation...

Renminbi peg draws criticism

The Skeptical Speculator (Free subscription) | 13/11/2009

It is not just the US that has a problem with the renminbi's peg to the US dollar. From Bloomberg : President Barack Obama may find on his Asian visit that began today that discontent about China’s currency peg to the dollar isn’t confined to Washington’s lawmakers and business lobbyists. From Mumbai-based Alok Industries Ltd., which supplies Wal- Mart Stores Inc. with textiles, to...

China Signalling It's Ready To Let The Yuan Float...

Monkeyfister (Free subscription) | 13/11/2009

Oh oh! Bad news for you, not-Strong-Dollar Strong Dollar! [ /Telorast and Curdle ] via CNBC China sent its clearest signal yet that it was ready to allow yuan appreciation after an 18-month hiatus, saying on Wednesday it would consider major currencies, not just the dollar, in guiding the exchange rate. In its third-quarter monetary policy report, the People's Bank of China departed from well-worn...

• China Signals That It May Allow Currency to Rise Against Dollar - Black Listed News
• China May Let Yuan Appreciate Against USD: "It's Started!" - Free Advice

What is a reserve currency and why is it important?

integrityfx | 03/07/2009

Background… A reserve currency is a currency that is stored in large quantities by foreign central banks and financial institutions as part of their foreign exchange reserves as a means to pay off international debt obligations, or to influence their domestic exchange rate. The U.S. dollar is the primary reserve currency. A reserve currency is generally the international pricing currency for goods