Central bank of china

SHANGHAI: China's central bank (pic) said on Saturday it had signed an agreement with the Bank for International Settlements to establish a Renminbi Liquidity Arrangement (RMBLA) that will provide support to participating central banks in times of market fluctuations. The People's Bank of China (PBOC) said the arrangement's first participants, in addition to the PBOC, would include the Central Bank of Malaysia (Bank Negara), Bank Indonesia, the Hong Kong Monetary Authority, the Monetary Authority of Singapore and the Central Bank of Chile. Each participant will contribute a minimum of 15 billion yuan ($2.2 billion) or the U.S. dollar equivalent, it said. The BIS said in a separate statement that the funds could be contributed either in yuan or U.S. dollars, and that they would be placed with the BIS, creating a reserve pool. ($1 = 6.6878 Chinese yuan renminbi) - Reuters … [Read more...] about China’s central bank renminbi liquidity arrangement includes Malaysia

File image of the People's Bank of China China's central bank said on Saturday it had signed an agreement with the Bank for International Settlements to establish a Renminbi Liquidity Arrangement (RMBLA) that will provide support to participating central banks in times of market fluctuations. The People's Bank of China (PBOC) said the arrangement's first participants, in addition to the PBOC, would include Bank Indonesia, the Central Bank of Malaysia, the Hong Kong Monetary Authority, the Monetary Authority of Singapore and the Central Bank of Chile. Each participant will contribute a minimum of 15 billion yuan ($2.2 billion) or the U.S. dollar equivalent, it said. The BIS said in a separate statement that the funds could be contributed either in yuan or U.S. dollars, and that they would be placed with the BIS, creating a reserve pool. … [Read more...] about China’s central bank, BIS set up renminbi liquidity arrangement

- A + A SHANGHAI (June 27): China's central bank made the biggest daily cash injection into the banking system via open market operations in nearly three months on Monday, to ease pressure from rising cash demand towards the end of the first half of the year. The People's Bank of China (PBOC) injected 100 billion yuan ($14.95 billion) worth of seven-day reverse repos, the biggest daily injection via the liquidity tool since March 31. The central bank said the operation was to keep "half year-end liquidity stable," according to an online statement. The PBOC started pumping more cash into the financial system last Friday. Demand usually surges towards the end of the quarter, when commercial banks also have to shore up cash positions for an administrative quarterly health check by the central bank. With 10 billion yuan worth of such reverse repos due on Monday, the PBOC net injected 90 billion yuan on the day. ($1 = 6.6886 Chinese yuan) … [Read more...] about China’s central bank makes biggest daily cash injection in three months

- A + A SHANGHAI (June 24): Chinese stocks closed up at their highest level since early March on Friday (June 24), gaining for a fourth straight week, as the country stepped up effort to stimulate a Covid-19-hit economy with the infusion of fresh capital into the banking system to keep liquidity stable. The blue-chip CSI 300 Index rose 1.2% to 4,394.77, while the Shanghai Composite Index gained 0.9% to 3,349.75 points. The Hang Seng Index rose 2.1% to 21,719.06, while the China Enterprises Index gained 2.2% to 7,629.06 points. For the week, the CSI 300 Index rose nearly 2%, while the Hang Seng Index added 3.1%. The People's Bank of China injected 60 billion yuan (US$8.96 billion or about RM39.45 billion) worth of seven-day reverse repos as demand for cash for the end of the first half of the year started to pick up. Global equity markets rose as commodities including copper and oil dropped, offering a salve for inflation fears. Refinitiv data showed strong … [Read more...] about China stocks log fourth weekly gain after central bank injected cash

BEIJING (Xinhua): China's central bank has ramped up support for renminbi settlement in new forms and models of foreign trade to better serve the real economy and facilitate trade and investment. In a recent circular, the People's Bank of China improved policies for cross-border renminbi business in e-commerce and other new models of foreign trade. The business scope of payment institutions will be expanded from goods and services trade to current accounts, and risk prevention and control will be strengthened with clear requirements for authenticity verification and anti-money laundering work, among other issues. Effective July 21, the new policies will provide better financial services for trade companies, guide the healthy development of new trade models, and help stabilize the economy, according to the central bank. Apart from e-commerce, new forms and models of foreign trade also include market procurement, offshore trade, and overseas warehouses. China has stepped up … [Read more...] about China backs renminbi settlement in new models of foreign trade

Share to Twitter Share to Linkedin Bitcoin bank Custodia today sued the Federal Reserve Board of Governors and the Federal Reserve Bank of Kansas City charging they have “unlawfully” delayed for 19 months acting on its application for a master account with the Federal Reserve. The bank, chartered in Wyoming under a crypto-friendly statute passed in 2019 allowing for “special purpose depository institutions,’’ says the master account would reduce its costs and is “vital” to its core mission of providing a bridge between digital assets and the U.S. dollar system. According to the suit, the Federal Reserve has a legal obligation to act within a year and states on its own paperwork that it ordinarily takes just five to seven days to act on a master account application. Custodia’s suit alleges the Kansas City Fed’s processing of its application was moving along until the Spring of 2021, when the main Federal Reserve got involved. The suit seeks to force the … [Read more...] about Bitcoin Bank Custodia Sues Federal Reserve, Demanding Decision On Master Account

- A + A (June 22): Chinese President Xi Jinping chaired a meeting Wednesday that approved promoting the “healthy” development of the payment and fintech sectors, a sign that a broad crackdown on tech companies like Ant Group Co may be easing. The meeting of the central commission for deepening overall reform also backed enhancing regulation of major payment platforms, state broadcaster China Central Television reported, adding that companies would be encouraged to return to their roots while the authorities will improve regulation. As part of the plans, China would ensure the security of payment and financial infrastructure, and work to prevent and defuse systemic financial risks, CCTV said. The government will also enhance oversight of financial holding companies and financial institutions invested by platform firms, the report said, without adding details. Beijing has promised to unwind crackdowns that torpedoed Ant’s record initial public offering in 2020 and … [Read more...] about China approves plan for ‘healthy’ development of fintech sector

UOB: Room for Bank Negara to hike OPR by another 50bps before end-September - A + A KUALA LUMPUR (June 22): There is growing pressure on Bank Negara Malaysia to hike rates faster in the face of an aggressive US Federal Reserve, while there is widening consensus that global food and energy prices will continue to stay elevated for longer, with any potential supply shocks seen capable of driving prices and inflation even higher. In a note on Wednesday, UOB Global Economics and Market Research cautioned that the key takeaway is that "doing nothing or acting too slow" could sow seeds of more persistent and elevated inflation in the future, with more negative effects on demand and the economy. "Rate hikes would then also need to be sharper and more abrupt in that scenario. There may also be a need to act faster now in order to have sufficient policy buffers in preparation for the next recession (when it happens). A lagged policy response by BNM relative to peers … [Read more...] about Growing pressure on Bank Negara to hike rates faster

- A + A (June 23): Chinese stocks rose to a near four-month closing high on Thursday (June 23), while Hong Kong's share benchmark gained over 1%, as Chinese tech companies and automakers jumped on Beijing's policy support. The market also drew inspiration from a surge in Chinese battery giant Contemporary Amperex Technology Co Ltd (CATL), following its US$6.7 billion (about RM29.52 billion) private placement and China's planned introduction of new stock index derivatives. US and European central banks "have been raising interest rates and shrinking balance sheets, but China has been loosening monetary policies to stabilise growth", said Linus Yip, the chief strategist at First Shanghai Group. In addition, "valuations of China and Hong Kong stocks are lower than their US peers". China's blue-chip index of CSI 300 rose 1.7% to the highest closing level since early March. The Shanghai Composite Index climbed 1.6%, also hitting a near four-month closing high. Hong … [Read more...] about China, HK stocks gain on Beijing’s support to tech, auto

- A + A (June 25): Effects related to the Covid pandemic in recent months will make it challenging for China to meet its 5.5% annual growth target, a central bank adviser said, adding that pro-economy policies including special bond issuance could be on the way. China’s economy could see a strong rebound in the second half, “but difficulties remain for the 5.5% target”, Wang Yiming, an adviser to the monetary policy committee of the People’s Bank of China (PBOC), said at a live-streamed forum on Saturday (June 25). The country could consider trying to boost the economy by introducing special national bonds that don’t count as financial deficits, said Wang, without giving details. The comments came after Chinese President Xi Jinping reaffirmed that the gross domestic product (GDP) target will be met despite concerns from economists that Beijing’s stringent Covid-19 policies would sink the economy. It is widely speculated that China could issue special sovereign … [Read more...] about PBOC adviser says China’s GDP target difficult to achieve