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PBOC signs cooperation agreement with HKMA

People's Bank of China governor Zhou Xiaochuan and Joseph Yam, Chief Executive of the Hong Kong Monetary Authority signed a cooperation memorandum for conducting renminbi (RMB) business in Hong Kong on Wednesday 19 November, according to the China Daily.

China restate goal of eventual yuan convertibility

People's Bank of China Governor Zhou Xiaochuan said in an interview published Monday 17 November, reported by Reuters, that foreign exchange controls would gradually be relaxed and there would be a steady push towards convertibility of the yuan.

IMF's Rajan says China should not wait on yuan

IMF chief economist Raghuram Rajan said in an interview, published by Reuters, that a move towards more flexible exchange rates by China would benefit both the Chinese and global economies. Rajan, a former University of Chicago academic, said two options…

PBOC to take over anti-money laundering role

According to a new amendment draft of a major banking law, reports Asia Pulse, the People's Bank of China is likely to replace the Ministry of Public Security to organize the fight against money laundering. The central bank will also guide banks and…

Exchange-rate reform studied in China

Signs are growing, reports China Daily, that China may embark on a long-awaited programme to reform the country's exchange-rate regime despite its determination not to revalue the yuan. As the first signal of the emerging trend, Chinese President Hu…

PBOC to strengthen cooperation with US Treasury

The People's Bank of China will launch a technical cooperation program with the United States Treasury Department which would facilitate communication and cooperation between financial experts of the two countries, according to a bank spokesperson quoted…

Office of CBRC set to open in Shanghai

The China Banking Regulatory Commission will open a Shanghai Bureau this week, says the China Daily.. The CBRC's Shanghai bureau will take over the supervision of the city's banking industry from the local branch of the People's Bank of China, the…

Fitch upgrades China's forex rating outlook

The rating agency Fitch has announced that it has revised the outlook for China's A-minus long-term foreign currency rating to positive from stable, according to AFP. China's official foreign currency reserves have been boosted by a continuing strong…

China's PM defends currency peg

China's premier Wen Jiabao has said that China's policy of pegging the yuan to the US dollar was "based on market demand and supply and is in line with China's reality", according to a BBC report. "To keep the renminbi (yuan) stable at an appropriate and…

China's forex reserves rise to a record $365 bn

China's foreign exchange reserves hit a record at the end of August, a Reuters report said. The People's Bank of China said on Monday that reserves increased a monthly $8.2 billion to $364.7 billion in August, down from a $10 billion average monthly rise…

Li Ruogu: Financial Supervision and central banks

In a speech on 'The Role of the Central Bank in Financial Supervision' given on 26 August, Li Ruogu of the People's Bank of China said that China established the China Banking Regulatory Commission (CBRC) in April this year as a special watchdog for the…

PBOC clarifies policy role and responsibilities

The People's Bank of China spelled out its monetary policy role and gave a detailed description of its responsibilities in a fourteen point statement posted on its web site on Tuesday 30 September and reported by China Daily. The statement specified its…

ECB's Welteke urges caution in changing yuan peg

Ernst Welteke urged caution on Wednesday 17 September in making "abrupt changes" to currency arrangements such as the Chinese yuan's peg to the US dollar, acording tp Channel News Asia. The ECB Governing Council member said "adaptations should develop in…

China says no currency revaluation soon

Li Yang, a member of the People's Bank of China monetary policy committee, said China will keep the value of its currency, the yuan, stable but gradually allow it to trade in a wider range, according to a report from the Associated Press.

China's central bank governor defends policy

Zhou Xiaochuan, governor of the PBOC, said on Thursday 4 September that it was too early to make a decision about the loosening of currency controls on the yuan, according to Associated Press. China's official news agency quoted him as saying "It is too…

China agrees to allow free yuan float 'eventually'

China's central bank governor, Zhou Xiaochuan, struck a conciliatory tone with US treasury secretary John Snow on Wednesday 3 September, reported the New York Times. He promised that the value of the yuan would eventually be determined by market forces…

US Snow urges Beijing to let currency float

US treasury secretary John Snow said Monday that flexible rates are a prerequisite for a functioning financial system and that American firms must not be disadvantaged by China's exchange rate policies, the Financial Times reported.

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