www射-国产免费一级-欧美福利-亚洲成人福利-成人一区在线观看-亚州成人

US EUROPE AFRICA ASIA 中文
Business / Markets

Yuan enters new era with freer float

By Gao Changxin (China Daily) Updated: 2014-03-26 08:31

Yuan enters new era with freer float

A currency exchange counter at a subway station in Shanghai. The yuan closed at 6.1781 to the dollar on Monday, down 285 basis points from Friday. Provided to China Daily 

A more flexible and volatile exchange rate is likely to give riseto more genuine participationand less speculation, reports Gao Changxin from Shanghai

The good old days are gone when speculation simply refers to acquisition when it comes to the Chinese yuan.

Yuan enters new era with freer float
Yuan enters new era with freer float 

Now that the decade-long expectation of appreciation is in tatters, traders will have to use more brain than brawn if they want to keep themselves in the game.

While the central bank has always preached the idea of a free-floating yuan, the People's Bank of China finally practiced it by doubling the currency's daily trading band to 2 percent on either side of the daily reference rate.

Zhou Xiaochuan, the central bank governor, has been pushing the idea for years, but traders really started to embrace it this time as their long positions suffered badly from a nosedive in the yuan's exchange rate.

The yuan lost 1.4 percent in February along with another 1.2 percent lost so far this month, following 10 years of appreciation.

Morgan Stanley estimated that $150 billion of redemption forward contracts - a main tool to bet on yuan's appreciation - remains in the market.

And, assuming contracts are 24 months in tenor, investors will see about $4.8 billion in total losses for every 100 basis points the yuan reaches above the level of 6.20 per dollar.

But what really caused them to rethink their strategy were remarks by another governor from the other side of the globe.

Last week, United States Federal Reserve Chairwoman Janet Yellen raised the possibility of an earlier-than-anticipated rise in US interest rates next year.

At a scheduled meeting, Yellen said a further cutback on the bond-buying program, by $10 billion to $55 billion a month, and adjusting its guidance on interest rates. She added that the "considerable period" between the end of the Fed's economic stimulus program and the first rate increase could be six months, meaning that the first rate hike could happen as early as spring next year.

Higher interests rates in the US, analysts said, would reshuffle the pattern of international fund flow in place since the global financial crisis in 2008, driving funds back to dollar assets and weakening emerging market currencies, including the yuan, against the greenback.

After Yellen made the comments on Friday, the yuan continued to weaken against the dollar, trading as low as 6.22 at one point, its weakest level in more than a year.

 

Yuan enters new era with freer float
Yuan eases on widened trading band

Previous Page 1 2 Next Page

Hot Topics

Editor's Picks
...
...
主站蜘蛛池模板: 欧美午夜精品一区二区三区 | 日本一级aaaa特黄毛片 | 成人午夜私人影院入口 | 久久在线播放 | 欧美国产综合视频 | 日韩一区国产二区欧美三 | 久久亚洲人成国产精品 | 亚洲精品成人网久久久久久 | 亚洲视频一区在线观看 | 亚洲精品久久久久久久久久久网站 | 尤蜜网站在线进入免费 | 一级做a爱久久久久久久 | 国内自拍2020 | xxx国产老太婆视频 xxx欧美老熟 | 国产成人久久 | 思99re久久这里只有精品首页 | 91久久亚洲精品一区二区 | 一区二区三区中文国产亚洲 | 国产成人三级经典中文 | 在线免费国产 | 美国毛片视频 | 久久国产精品影院 | 国产精品久久久久久吹潮 | 欧美久久久久久久一区二区三区 | 亚洲午夜久久久久国产 | 欧美成人免费全部观看天天性色 | 亚洲va久久久噜噜噜久久狠狠 | www.精品| 免费毛片儿 | 国产日本精品 | 手机看片高清国产日韩片 | 午夜一级毛片不卡 | 在线亚洲播放 | 国产一区二区三区高清 | 国产精品久久久久毛片真精品 | 精品国产一区二区二三区在线观看 | 97干干干 | 亚洲欧美另类视频 | 国产欧美va欧美va香蕉在线 | 视频一区二区三区在线 | 欧美xxxx成人免费网站 |