All articles tagged with #peoples bank of china
China’s central bank has increased its gold holdings for the 10th consecutive month as part of a strategy to diversify its reserves away from US dollars, with gold prices reaching new highs influenced by US rate cut bets and geopolitical risks.
China's central bank has increased its gold holdings for the 10th consecutive month as part of a strategy to diversify reserves away from US dollars, with gold prices reaching new highs driven by US rate cut bets and geopolitical tensions.
China's yuan fell to a four-month low against the dollar, prompting state-owned banks to intervene and defend the currency. Market sources revealed that state banks bought yuan for dollars, and the currency closed at 7.2275 per dollar, 281 pips softer than the previous session. The yuan's decline is attributed to growing expectations of further monetary easing to support the economy, as well as a stronger dollar and depreciation of the Japanese yen and other Asian currencies. The People's Bank of China set the midpoint rate weaker than market projections, indicating potential further easing measures. The sudden weakness in the yuan also impacted stock markets, with the Shanghai stock index down 1%.
Asian markets traded lower, weakening the case for imminent Federal Reserve interest rate cuts, with the yen gaining after reports of large wage increases for Japanese workers, while the People’s Bank of China kept the rate on its one-year policy loans steady at 2.5% and drained cash from the banking system for the first time since November 2022.
Gold price drifts lower to $2,027 as robust US economic data raise expectations of delayed interest rate cuts by the Federal Reserve, boosting the US Dollar. US consumer sentiment improved in January, hitting the highest level since July 2021, while investors await the People’s Bank of China interest rate decision. Weaker US data may lead the Fed to lean toward a dovish policy, potentially capping the downside of the gold price, while any negative developments in the Chinese economy could drag the gold price lower.
Japan's equity market continues its upward trend, with the Nikkei 225 index reaching a 34-year peak, but concerns arise as producer price figures suggest a potential shift from disinflation to deflation. The Japanese bond market reflects investor uncertainty about the Bank of Japan's policy path, while in China, the People's Bank of China maintains its medium-term policy rate, indicating a delicate balance between stimulating the economy and managing the yuan's value. Key economic indicators from Japan, Australia, and South Korea are expected to provide further market direction.
China's central bank, the People's Bank of China, has decided to keep its benchmark loan rates unchanged for September, signaling stability in the country's economy after recent policy support measures. The one-year loan prime rate remains at 3.45%, while the five-year benchmark loan rate stands at 4.2%. This decision aligns with economists' expectations and follows the PBOC's steady medium-term policy rate and a recent cut in reserve requirement ratio requirements for all banks.
China's central bank, the People's Bank of China, has increased its intervention in the foreign exchange market after the onshore yuan hit a 16-year low against the US dollar. The central bank set the yuan midpoint at a rate stronger than Reuters' estimate for the second consecutive day, and state banks were seen selling US dollars to buy yuan in an effort to slow the currency's depreciation. The central bank aims to maintain the stability of the yuan exchange rate and prevent excessive volatility.
Pan Gongsheng, who previously oversaw China's $3 trillion in foreign currency reserves, has been named the governor of the People's Bank of China. This appointment comes at a critical time for China as its economic recovery falters, its banking system faces bad loans, and its currency weakens. Pan's previous experience in stabilizing the renminbi during a currency plunge in 2016 may prove valuable in his new role. However, his lack of political backing within the Communist Party may pose challenges.
The People's Bank of China has cut its seven-day reverse repurchase rate by 10 basis points, from 2% to 1.9%, for the first time since August. The move injects 2 billion yuan ($279.97 million) through its 7-day repos and is aimed at providing short-term borrowing for dealers in government securities.
The heads of the US Federal Reserve and the People's Bank of China met in Washington, D.C. to discuss economic and financial trends between the two countries. The meeting comes amid escalating political tensions between the US and China, and limited high-level interactions. The PBoC statement did not include any photos, and the US Federal Reserve and IMF did not immediately respond to a CNBC request for comment.