Currency softens over weakness in world’s second-largest economy and fear of Trump tariffs
Renminbi under pressure from stronger dollar and concerns about incoming US president’s trade plans
CSI 300 down 4.2% this year and currency slides to 15-month low as Donald Trump’s return weighs on markets
Given the need for a weak renminbi to support export growth, a reprise of the 1985 Plaza Accord with Japan is unlikely
Hang Seng index down 1.5% after Beijing unveils $1.4tn plan to restructure local government debt but no consumer support
China could respond to aggressive new tariffs with bigger stimulus action or currency depreciation, say analysts
Direct participation in Cips system will mean faster settlements and help internationalise use of renminbi
Stronger currency is challenging China’s exchange rate management with US election looming
Asian Infrastructure Investment Bank will provide guarantees and support for developing nations’ ‘panda bonds’
Closer ties with Russia bolster Beijing’s efforts to use its currency more in global trade
China’s reliance on exports is set to fan the flames of protectionism elsewhere
But this may not be obvious to investors who cut their teeth in the past decade
Markets push central bank for a weaker currency to reflect the gap in bond yields with the US
If there is pressure on the Chinese currency, it could have far-reaching economic and political consequences
Shifting US interest rate expectations put pressure on Japan’s yen and China’s renminbi
Tokyo and Seoul voice ‘serious concerns’ after currencies hit by shift in interest rate expectations
Strategists warn of sharp falls against dollar longer term if Donald Trump wins presidency in November and carries out tariffs threat
Chinese currency surpasses euro in November to become second most-used in trade finance
Geopolitical concerns help support the use of the renminbi despite weak foreign investment trends
If Beijing returns to promoting export-led growth, tension over exchange rates may return
Sales surge coincides with People’s Bank of China’s efforts to defend renminbi
Also in this newsletter: why Bosnia should get rid of its Serb separatist leader before joining the EU
Spread between Shanghai spot price and London hit record $121 per troy ounce last week
Currency rebounds from 16-year low as Beijing releases positive lending data earlier than usual
Treasury secretary indicates slowdown’s impact on US will be small as renminbi hits 16-year low against dollar
