Vietnam 

More steps to be taken to downsize foreign currency loans – Economy – Vietnam News | Politics, Business, Economy, Society, Life, Sports

  Firms will have to buy foreign currencies instead of borrowing from banks. — Photo cafef.vn HÀ NỘI — Commercial banks will no longer allow the provision of mid- and long-term foreign currency loans for offshore payments of imported goods and services from September 30 this year. According to the State Bank of Việt Nam (SBV), the move aims to implement the SBV’s policy to shift the foreign currency-related transactions from borrowing and lending to buying and selling to minimise dollarisation in the economy. Earlier, banks also stopped providing short-term foreign…

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Home 

How Donald Trump’s currency war may end up hurting the US economy, rather than China

Worse than being unjustified, Washington’s decision to brand China a currency manipulator was misguided as it could backfire on the US economy. As for Beijing, it should resist any temptation to let the yuan slide precipitately. That wouldn’t be in China’s own interest. The Trump administration’s categorisation of China as a currency manipulator followed a fall in the renminbi’s value to more than 7 to the US dollar. But, in truth, if China has been influencing the yuan’s value in recent times,… Source link

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China 

China pledges not to devalue yuan exchange rate after US currency manipulator designation

China will neither devalue the yuan nor change the way it manages the Chinese currency exchange rate after the United States designated it as a currency manipulator last week, according to China’s foreign exchange administration chief.The US Treasury officially designated China as a currency manipulator on Monday after Beijing allowed the yuan to weaken beyond the key threshold of 7 to the US dollar after having defended that level for more than a decade.But China will stick to its “managed… Source link

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China 

New IMF report doesn’t back Donald Trump’s currency manipulation charge against China

This story is published in a content partnership with POLITICO. It was originally reported by Doug Palmer on politico.com on August 9, 2019.The International Monetary Fund on Friday provided little or no support for US President Donald Trump’s assertion that China is manipulating its currency for an unfair trade advantage.In an annual review of China’s economic policies, the IMF said Beijing actually took steps last year to prop up the value of its currency after the renminbi declined against… Source link

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Global 

Is China’s ‘currency manipulator’ tag the start of a global recession, currency war?

The United States’ decision to label China a “currency manipulator” after the yuan’s exchange rate weakened beyond a closely watched barrier is raising the question of whether the world’s two largest countries have started a currency war as part of a broadening economic conflict.China, which had prevented the exchange rate of the yuan, also known as the renminbi (RMB), from breaching the psychologically important level of 7 to the US dollar from the last 11 years, let the currency slip below… Source link

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Home 

China’s currency slide has a sting in the tail for mainland airlines and these other debt-laden companies

Many of the mainland’s leading companies are facing a fallout from the recent slide in the value of the yuan.Airlines are in for a turbulent ride from higher fuel costs, while property developers and utilities, which loaded up on US dollar loans, will get squeezed by rising debt servicing costs, according to analysts.David Cui, head of China equity strategy at Bank of America Merrill Lynch, said a weaker yuan made A shares less attractive to foreign investors as yuan-denominated earnings were… Source link

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Home 

Trump finally labels China a currency manipulator. It may be too little, too late

As a candidate for the 2016 US presidential election, Donald Trump vowed to name China as a currency manipulator “on day one” as president. On August 5 this year, he finally made the move, but hardly with the triumph of fulfilling a campaign promise. The immediate context of Treasury Secretary Steven Mnuchin’s declaring China a “currency manipulator” is that the renminbi fell below the psychologically important level of 7 yuan to the US dollar, which of course happened on the heels of Trump’s… Source link

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China 

China and US mutual mistrust brought economic superpowers to brink of currency war, analysts say

This week’s escalation of the US-China trade war into a broader conflict over currencies shows the dangers of diminishing trust and goodwill on both sides, leading to unintended policy consequences, analysts said.On Monday, the People’s Bank of China (PBOC) allowed the yuan to weaken beyond the key psychological threshold of 7 to the US dollar, which led to the United States to officially labelling the world’s second biggest economy a “currency manipulator” for the first time since 1994.However… Source link

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Home 

China currency move, US tariffs an ‘unwanted escalation’ in dispute, says Australia

Australia has called on the US and China to negotiate a resolution to their economic conflict, with Treasurer Josh Frydenberg describing the introduction of currencies into the dispute as an “unwanted escalation”.In a television interview on Wednesday, Frydenberg avoided answering a question on whether the US was right to brand China a currency manipulator.“It’s not for Australia to say which side is right and which side is wrong,” he said. “What Australia wants is for the international rules… Source link

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Money 

So the US Treasury just labelled China a currency manipulator, roiling global financial markets. What are the implications?

The surprise announcement by the US Treasury labelling China a “currency manipulator” raises a lot of questions. The answers to two of them in particular shed light on how trade tensions are likely to play out between the two largest economies in the world.Is the label justified?China does not currently fit the often-stated criteria for being a currency manipulator. While it still runs a trade surplus, its overall current position has not been in a persistent surplus. Its international reserves… Source link

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