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China

Russian reserves hit all time high

Russia's gold and foreign exchange reserves, boosted by record world oil prices, have touched an all-time high of $243.3 billion, the central bank said on Thursday 1 June.

RBA's Stevens on risk and the macroeconomy

In the speech 'Risk and the macroeconomy' given on 27 May Glenn Stevens of the Reserve Bank of Australia said interest rates around the world can't stay low and steady ``permanently'' and central banks will continue to control inflation.

PBOC to increase yuan flexibility

The People's Bank of China said in its first quarter monetary report that it will increase the flexibility of the yuan's exchange rate mechanism and intervene less in determining the currency's value.

PBOC's Tang says China may not tighten further

China may not need to tighten its macro-economic policy further in the near future, Tang Xu, the director of the People's Bank of China's research bureau, said in an interview published in the official Shanghai Securities News.

Framework for independent monetary policy in China

According to this IMF Working Paper, published 15 May, as China's economy becomes more market based and continues its rapid integration into the global economy, having an independent and effective monetary policy regime oriented to domestic objectives…

Comment: The commodity boom revisited

A recent research note by Morgan Stanley chief economist, Stephen Roach, provides some interesting numbers on the extent and historical significance of the current commodity boom.

Economist says yuan should be allowed to rise 5%

China has to speed up the pace of yuan appreciation to 5 percent for this year and ease its huge foreign exchange surplus if it wants to keep domestic bank lending under control, government researcher Zhu Baoliang told reporters on Monday 15 May.

Chinese economists want increased gold reserves

Some Chinese economists are urging the government to increase its gold reserves to 2,500 tons from the current 600 tons because the country's foreign exchange reserves had become the world's largest, an official industry newspaper reported this week.

Comment: US Treasury diplomacy

In what has been billed as a key moment in American economic diplomacy, the US Treasury this week resisted temptation and political pressure by deciding not to formally accuse China of currency manipulation.

China's yuan progress 'far too little'

The US government on Wednesday 10 May did not accuse China of manipulating the value of its currency, but said Beijing had made "far too little progress" in adopting a flexible exchange rate.

Why economists worry about foreign reserves

According to the article "Why economists worry about who holds foreign currency reserves" published Tuesday 9 May, the idea that China or some other American rival could someday use its vast holdings of U.S. debt as a geopolitical weapon is gaining…

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