August 22, 2019
Latest News

IMF says Chinese central bank intervened little in yuan exchange rates

 Chinese yuan or renminbi (RMB) notes and coins in Beijing, China, Aug. 5 2019. EPA-EFE FILE/ROMAN PILIPEY

Chinese yuan or renminbi (RMB) notes and coins in Beijing, China, Aug. 5 2019. EPA-EFE FILE/ROMAN PILIPEY

Beijing, Aug 10 (efe-epa).- The International Monetary Fund said Saturday that the People's Bank of China has made few interventions on the yuan's exchange rate in recent years.

In its report on the performance of the Chinese economy over the last year, the IMF said that after the devaluation of the renminbi (the yuan's official name) between June and August 2018, the currency remained generally stable compared to other major international currencies.

This report comes in the same week in which the yuan, for the first time since 2008, crossed the psychological barrier of seven units to the dollar.

Several analysts are of the opinion that the PBOC deliberately allowed this devaluation in response to United States President Donald Trump's announcement of fresh 10 percent tariffs on $300 billion worth of Chinese goods.

The depreciation of the yuan didn't sit well with the US, whose Treasury Department officially designated China as a currency manipulator, something Trump had been insisting on for years.

As per US law, under this move, Washington and Beijing must now negotiate directly or through the IMF to address alleged irregularities in Chinese currency exchange rates.

However, Chinese authorities and the country's government-controlled press have expressed outrage over the accusation, making it highly unlikely that Beijing would be willing to negotiate the issue.

And while the IMF report covers until July 31 this year, it concludes that the effective real exchange rates were compliant with the basic rules.

However, the document underlined that China should be more transparent in explaining the movements of the yuan and that the authorities should allow greater flexibility in the exchange rate.

Currently, the PBOC sets a benchmark rate every day (for example, it was 7.0136 yuan to the dollar on Friday) and allows the onshore rate – the one quoted in local markets – to fluctuate a maximum of 2 percent.

However, the rate for international investors is listed on offshore markets such as Hong Kong and is not regulated by the PBOC.

China's state media was quick to underline the findings of the IMF report. The Xinhua agency quoted Columbia University economics professor Jeffrey Sachs saying that the IMF report made it clear that there had been no currency manipulation by Beijing. EFE-EPA


News history
Qantas to test 19-hour non-stop flight toll on passengers, crew

Sydney, Australia, Aug 22 (efe-epa).- Qantas is to test three approximately 19-hour ultra long-haul flights to see what toll they would take on passengers...

Air New Zealand reports earnings fell by 31 percent

Sydney, Australia, Aug 22 (efe-epa).- National airline Air New Zealand's annual earnings for the financial year 2019 fell by 31 percent due to rising fuel...

Qantas posts 17-percent drop in earnings

Sydney, Australia, Aug 22 (efe-epa).- Australian flag carrier Qantas posted a 17 percent drop in profit before tax owing to an increase in fuel costs and...

Nur-Sultan, Aug 21 (EFE).- The foreign ministers of the five Central Asian countries met here Wednesday with US Under Secretary of State David Hale to...

Bilateral deal reached on Mexican tomato exports to US

Mexico City, Aug 21 (efe-epa).- A bilateral agreement has been reached on Mexican tomato exports that will bring a halt to a United States anti-dumping...

Samsung at risk of losing its semiconductor leadership, says report

Seoul, Aug 21 (efe-epa).- Samsung is on its way to losing its leadership in semiconductor global sales to Intel, according to a leading semiconductor market...

Breathtaking spots offer tourists birdseye views of Uruguay's capital

By Sarah Yañez-Richards

Stabilizing peso is priority, Argentina's new finance minister says

Buenos Aires, Aug 20 (efe-epa).- New Finance Minister Hernan Lacunza said Tuesday that his main goal would be shoring up the Argentine peso, which has...

Butterfly wings could hold key to fighting forgery

By Snezana Stanojevic

Focus is on Macri's goals, Argentina's incoming finance minister says

Buenos Aires, Aug 19 (efe-epa).- Incoming Argentine Finance Minister Hernan Lacunza said Monday that he could not discuss the details of his meeting with...

US gives China's Huawei another 90-day reprieve on sanctions

Washington, Aug 19 (efe-epa).- Chinese tech giant Huawei Technologies on Monday criticized the sanctions imposed by the Donald Trump administration as being...

Iran faces the scourge of fuel smuggling

By Artemis Razmipour

China urges Trump to keep his word, allow business with Huawei in US

Beijing, Aug 19 (efe-epa).- Beijing on Monday urged Donald Trump to keep his word and allow companies in the United States to do business with Chinese tech...

Japan's trade deficit widened by 9.8 percent in July

Tokyo, Jul 19 (efe-epa).- Japan had a trade deficit of 249.6 billion yen ($2.35 billion) in July, a 9.8-percent increase compared to the same month last...

Trump acknowledges US' interest in buying Greenland from Denmark

Washington DC, Aug 18 (efe-epa).- The president of the United States on Sunday said that Greenland was strategically interesting for his country, although...

Trump defends China policy, says US economy is world's best

Washington, Aug 18 (efe-epa).- President Donald Trump on Sunday defended his strategy versus China, on whose goods Washington has imposed heavy tariffs as...

Anti-government rally in Hong Kong

By Steven Russolillo, Joanne Chiu and Eli Binder

Lacunza to be Argentina's new treasury minister as Dujovne quits

Buenos Aires, Aug 18 (efe-epa).- President Mauricio Macri said Sunday that Hernan Lacunza "is the right person" to replace former Finance Minister Nicolas...

Quito video art makes viewers reflect on migration, environment and memories

Quito, Aug 16 (efe-epa).- An unprecedented exhibition in the Ecuadorian capital is making viewers reflect on such concepts as migration, the environment and...

Delivery workers unite to protect themselves from Mexico City dangers

By Zoilo Carrillo

Woody Allen wraps up filming of new romantic comedy set in Spain

San Sebastian, Spain, Aug 16 (efe-epa).- American director Woody Allen on Friday completed shooting on his latest movie, a romantic comedy filmed in Spain...

UK government names Ataer Holdings preferred bidder for British Steel

By Oliver Griffin

Foreign tourism to Mexico up 7 pct. in 1st half of 2019

Mexico City, Aug 15 (efe-epa).- The number of foreign tourist arrivals in Mexico in the first half of 2019 rose 7 percent relative to the same period of...

Iran: US attempt to stop release of seized tanker an act of attempted piracy

Tehran, Aug 15 (efe-epa).- Iran on Thursday said the United States' unsuccessful attempt to prevent Gibraltar's authorities from releasing a seized Iranian...

I agree Welcome to We use cookies to improve your online experience. Find out more.