Latest news with #People'sBankOfChina
Yahoo
07-07-2025
- Business
- Yahoo
China's central bank asks financial institutions about dollar weakness: Source
(Reuters) -China's central bank has asked some financial institutions about their views on recent U.S. dollar weakness, people with knowledge of the matter said. In the survey conducted last week, the People's Bank of China ( asked questions related to the U.S. dollar's movements and the causes of its recent weakness and outlook for the Chinese yuan exchange rate, the sources said. The PBOC did not immediately respond to Reuters' request for comment. While the PBOC did not explicitly state the purpose of its recent survey, one of the sources said he interpreted it as a sign authorities are concerned about a sharp appreciation of the yuan against the weakening dollar (DX=F). Another source directly involved in the survey said it seemed to be an assessment of the dollar's outlook as trade negotiations with the U.S. progress. The survey comes days before U.S. President Donald Trump's 90-day pause on tariffs on imports from dozens of countries expires on Wednesday, and a month before a reprieve on triple-digit tariffs on China expires. U.S. trade and economic policies this year have weighed heavily on the dollar. The dollar index, which reflects the U.S. currency's performance against a basket of six others, has had its worst first half of the year since 1973, declining some 11%. It has fallen by 6.6% since April 2 alone. China's yuan has been relatively stable, however, and is up just 1.3% since Trump's April 2 "Liberation Day" tariffs.
South China Morning Post
25-06-2025
- Business
- South China Morning Post
China's central bank doubles down on financing support to boost consumption
China is doubling down on its efforts to encourage domestic consumption, with the central government and the country's wealthiest province rolling out policies aimed at providing structural financial support and on-the-ground incentives. Continued policy support is crucial to keep China's domestic consumption afloat as trade uncertainties and unemployment pressures persist, analysts said. The People's Bank of China (PBOC) said on Tuesday that a 500 billion yuan (US$69.68 billion) relending quota announced last month will help 21 national financial institutions and five key city commercial banks establish consumption and aged care loans. 'We will strengthen incentives with structural monetary policy tools to encourage and guide financial institutions to extend loans to various types of business entities in key areas of service and consumption,' the PBOC said in guidance issued with five other government departments. The document contains 19 initiatives covering financial support measures for consumers and sellers. China's central bank listed several key sectors it aims to support, including retail, hotels, restaurants, sports, entertainment and tourism. 'We will guide financial institutions to continuously increase financial support in the area of consumption and provide strong financial support for consumption to fulfil its fundamental role in our economic development,' it said.
South China Morning Post
25-06-2025
- Business
- South China Morning Post
China's central bank doubles down on financing support to boost consumption
China is doubling down on its efforts to encourage domestic consumption, with the central government and the country's wealthiest province rolling out policies aimed at providing structural financial support and on-the-ground incentives. Continued policy support is crucial to keep China's domestic consumption afloat as trade uncertainties and unemployment pressures persist, analysts said. The People's Bank of China (PBOC) said on Tuesday that a 500 billion yuan (US$69.68 billion) relending quota announced last month will help 21 national financial institutions and five key city commercial banks establish consumption and pension loans. 'We will strengthen incentives with structural monetary policy tools to encourage and guide financial institutions to extend loans to various types of business entities in key areas of service and consumption,' the PBOC said in guidance issued with five other government departments. The document contains 19 initiatives covering financial support measures for consumers and sellers. China's central bank listed several key sectors it aims to support, including retail, hotels, restaurants, sports, entertainment and tourism. 'We will guide financial institutions to continuously increase financial support in the area of consumption and provide strong financial support for consumption to fulfil its fundamental role in our economic development,' it said.
Bloomberg
11-06-2025
- Business
- Bloomberg
Being a Bully on Trade Won't Work Longer Term, Lagarde Warns
There's no longer-term advantage to being a bully on global commerce, according to European Central Bank President Christine Lagarde. 'Coercive trade policies are not a sustainable solution to today's trade tensions,' she said Wednesday in a speech at the People's Bank of China in Beijing.
South China Morning Post
15-05-2025
- Business
- South China Morning Post
China to enhance Swap Connect by extending tenor, use loan prime rate as reference
Mainland China and Hong Kong are expanding the product offerings under the Swap Connect scheme, increasing the tools to manage interest-rate risks, as regulators look to further open up the capital market to global investors. The tenor of interest-rate swap contracts would be extended to 30 years from 10 years 'to meet the diverse risk management needs of market institutions', the Securities and Futures Commission (SFC) said in a statement on Thursday. Contracts using the onshore Loan Prime Rate as the reference rate would also be introduced, it added. 'Relevant infrastructure operators in both markets will implement these enhancement measures progressively,' the SFC said, following its joint effort with the People's Bank of China and the Hong Kong Monetary Authority. Swap Connect, launched in May 2023, is the world's first derivatives mutual market access programme, with its initial phase designed to help global investors manage interest-rate risks when they invest in yuan-denominated bonds. The scheme was updated last year to enable institutions to trim capital costs and foster active trading. 08:23 China unveils policy package to guard against US tariffs ahead of trade talks in Switzerland China unveils policy package to guard against US tariffs ahead of trade talks in Switzerland Swap Connect allows domestic and foreign investors to conveniently complete interest-rate swap transactions, according to regulators. It centralises clearing through mutual access in terms of trading, clearing and settlement, without changing trading habits and in compliance with the laws and regulations of both markets.
