-
Policy
Policy
Exclusive interviews with leading policymakers that convey the true policy message that impacts markets.
LATEST FROM POLICY: -
EM Policy
EM Policy
Exclusive interviews with leading policymakers that convey the true policy message that impacts markets.
LATEST FROM EM POLICY: -
G10 Markets
G10 Markets
Real-time insight on key fixed income and fx markets.
Launch MNI Podcasts -
Emerging Markets
Emerging Markets
Real-time insight of emerging markets in CEMEA, Asia and LatAm region
-
Commodities
Commodities
Real-time insight of oil & gas markets
-
Credit
Credit
Real time insight of credit markets
-
Data
-
MNI Research
Actionable insight on monetary policy, balance sheet and inflation with focus on global issuance. Analysis on key political risk impacting the global markets.
-
About Us
To read the full story
Sign up now for free trial access to this content.
Please enter your details below.
Why MNI
MNI is the leading provider
of intelligence and analysis on the Global Fixed Income, Foreign Exchange and Energy markets. We use an innovative combination of real-time analysis, deep fundamental research and journalism to provide unique and actionable insights for traders and investors. Our "All signal, no noise" approach drives an intelligence service that is succinct and timely, which is highly regarded by our time constrained client base.Our Head Office is in London with offices in Chicago, Washington and Beijing, as well as an on the ground presence in other major financial centres across the world.
Real-time Actionable Insight
Get the latest on Central Bank Policy and FX & FI Markets to help inform both your strategic and tactical decision-making.
Free AccessMNI POLICY: Yuan's Gain Moderate, Outlook Neutral: Regulator
The yuan's 4.5% gain against the dollar this year is moderate, and the outlook for the currency is likely to remain neutral in the medium-to-long term despite a weak outlook for the dollar, Wang Chunying, the spokeswoman of the State Administration of Foreign Exchange, said at a press briefing.
China's exports have been strong and foreign investors increased yuan holdings, Wang said. The yuan's gain against the dollar is also consistent with that of other major currencies, Wang said, citing the euro's 5.9% gain and the yen's 4.1%.
While the yuan has also been supported by China's current account surplus, due partly to strong exports following the recovery from the pandemic, "it may not be easy to maintain the large current account surplus," said Wang. China's imports, overseas tourism and education demand foreign exchange, she said.
QUOTAS
The short-term outlook for the dollar is uncertain, and the outlook of the global economy is also threatened by regional conflict and protectionism, Wang said.
"The smart market can see there are two sides to the coin," Wang said. The currency is more likely to maintain two-way movement with increased "flexibility," she added and warned the market against forming a "one-sided mentality" on its future trend.
Referring to recent developments, she said SAFE has encouraged more outbound investment by issuing a new round of quotas under its Qualified Domestic Institutional Investors scheme, showing the regulator is comfortable with realizing stable economic growth and dealing with the impact of external capital and the environment.
Unlike in the past when surging surpluses helped amass huge foreign exchange reserves, China's international payments have reached "a new mode of balance," Wang said. "The forex reserves have been stable and not subject to changes in major current account items," Wang said.
While the opening of China's financial markets is attracting capital, there is also growing outbound investment or asset acquisitions, Wang said.
To read the full story
Sign up now for free trial access to this content.
Please enter your details below.
Why MNI
MNI is the leading provider
of intelligence and analysis on the Global Fixed Income, Foreign Exchange and Energy markets. We use an innovative combination of real-time analysis, deep fundamental research and journalism to provide unique and actionable insights for traders and investors. Our "All signal, no noise" approach drives an intelligence service that is succinct and timely, which is highly regarded by our time constrained client base.Our Head Office is in London with offices in Chicago, Washington and Beijing, as well as an on the ground presence in other major financial centres across the world.