China
China unveils raft of reforms to liberalise the renminbi
Series of reforms will facilitate cross-border renminbi settlement; RQFII programme has also been extended to Singapore and London
Euro's international role hampered by continued fragmentation
ECB study finds reserve manager confidence in the euro is recovering, but a leading fund manager says the euro cannot challenge the pre-eminence of the dollar without issuing federal bonds
Asian central bank FX reserves not properly recognised by rating agencies, says Sheng
CBRC adviser and former Hong Kong SFC chief Andrew Sheng points to inconsistent approach in sovereign debt ratings; doubts international crisis co-ordination is possible
Bundesbank’s Nagel says internationalisation of renminbi is ‘long overdue’
Executive board member says that renminbi is now established as a trading currency – the first step towards becoming a global reserve currency
Chinese financiers hit out at 'blind' PBoC
China central bank accused of being blind to potential capital market reaction in its attempts to clamp down on the shadow banking sector
BoE and PBoC open ‘very important’ renminbi swap line
Bank of England and People’s Bank of China establish three-year 200 billion yuan swap line; fourth largest of its kind and first in European Union
PBoC maintains hard line on liquidity
People’s Bank of China insists there is a ‘reasonable’ level of liquidity in financial sector and says commercial banks are responsible for their own levels of reserves
PBoC leaves banking sector sweating over liquidity squeeze
Tight credit conditions persist as the People’s Bank of China remains silent about liquidity injections into increasingly strained banking sector
Central banks showing interest in renminbi assets, RBA article says
Article highlights continuing gradual move to liberalise trade in renminbi; notes many central banks have made Chinese investments, but says renminbi not yet an official reserve asset
IMF warns China on rapid growth of social financing
Article IV consultation urges China to tighten prudential standards to rein in fast credit growth and rebalance economy away from investment; growth forecast trimmed again
HKMA deputy looks to eurodollar model for offshore RMB development
Eddie Yue says offshore RMB market is facing ‘historic transition'; calls for more offshore intermediation and ‘continued relaxation' of RMB flows in and out of China
China’s new financial and regulatory architects
Keeping Zhou Xiaochuan as governor of the People’s Bank of China will provide policy stability in the world’s second largest economy. But there are plenty of changes elsewhere
Booknotes: The Leaderless Economy: Why the World Economic System Fell Apart and How to Fix It
The title of Peter Temin and David Vines’ book, especially its subtitle, promises the reader a lot
Australia to shift 5% of foreign reserves to China
Deputy governor Philip Lowe reveals the Reserve Bank of Australia will invest around 5% of its foreign exchange reserves in China; Asian economists divided over significance of move
Bundesbank research finds strong role for China in global inflation dynamics
Discussion paper weighs cross-border effects of supply and demand shocks in China; results suggest Chinese shocks explain an average of 5% of total inflation across countries
IMF paper recommends China adopt ‘better-targeted’ macro-prudential policies
Study encourages China to tailor macro-prudential tools to regional and economics differences in country’s banks; suggests coupling policies with greater commercialisation
Zhou Xiaochuan stays on as PBoC governor
People’s Bank of China governor Zhou Xiaochuan staves off retirement for another term at the top of the central bank; will target rising inflation and capital reforms
Bank of Finland highlights ‘astonishing’ lack of information on Chinese government debt
Researcher warns opaque debt statistics are to China’s detriment and could threaten renminbi internationalisation; urges government to begin politically difficult process of improving transparency
Renminbi internationalisation to get boost from 60m overseas Chinese
Use of the renminbi by the 60-million strong Chinese diaspora will accelerate the currency’s use in global trade and reserves management. By Gary Smith.
Zhou Xiaochuan to stay on as governor of PBoC, says Reuters
China’s top central banker and renminbi reformer Zhou Xiaochuan may not step down from his post as previously expected, according to a news agency report
G-20 vows to resist entering currency wars
Commentators including Paul Krugman and Christine Lagarde reject concerns over possible currency war, as G-20 reaffirms commitment to exchange rate flexibility
World gold demand drops despite increased central bank purchases
Central bank purchases in 2012 reach highest level in 48 years, but Indian contraction leads global demand fall
‘Crisis in the eurozone is not over’, says MAS chief
MAS's Ravi Menon offers a roadmap to central banks and governments to help ‘normalise’ the global financial system; hits out at loose monetary policies and says fiscal policy debate is misinformed
The next ‘Mr RMB’
Five leading candidates have emerged as the likely successor to Zhou Xiaochuan, governor of the People’s Bank of China. Hui Feng assesses their relative strengths and weaknesses