China’s forex reserves fall to $3.20 trillion in July: PBOC data

China’s foreign exchange reserves fell to $3.20 trillion in July, central bank data showed on Sunday, in line with analyst expectations. Economists polled by Reuters had predicted reserves would fall to $3.20 trillion from $3.21 trillion at the end of June. China’s reserves, the largest in the world, fell by $4.10 billion in July. The reserves rose $13.4 billion in June, rebounding from a 5-year low in May…

PBOC willing to let yuan fall 6.8% per dollar in 2016 to support economy

China’s central bank would tolerate a fall in the yuan to as low as 6.8 per dollar in 2016 to support the economy, which would mean the currency matching last year’s record decline of 4.5 percent, policy sources said. The yuan is already trading at its lowest level in more than five years, so the central bank would ensure any decline is gradual for fear of triggering capital outflows and criticism from trading partners such as the United States, said government economists and advisers involved in regular policy discussions…

Presumptive U.S. Republican Presidential nominee Donald Trump already has China in his sights, saying on Wednesday he would label China a currency manipulator if elected in November.

PBOC to Fed: Your urgent assistance is greatly appreciated!

Confronted with a plunge in its stock markets last year, China’s central bank swiftly reached out to the U.S. Federal Reserve, asking it to share its play book for dealing with Wall Street’s “Black Monday” crash of 1987. The request came in a July 27 email from a People’s Bank of China official with a subject line: “Your urgent assistance is greatly appreciated!”…

PBOC’s chief warns that corporate debt is ‘on the high side’

High levels of debt at Chinese companies are making the country’s central bank chief uneasy. Zhou Xiaochuan, the governor of the People’s Bank of China, has warned that lending to corporations is “on the high side” compared with the overall size of the Chinese economy. He made the comments at a forum of policymakers and business leaders in Beijing on Sunday, saying the situation poses a risk to the world’s second largest economy…

Global stocks rise sharply as PBOC strengthens yuan, easing global deflation fears

World stocks rose sharply on Monday as China’s central bank fixed the yuan at a much stronger rate and oil cemented recent gains, easing fears of global deflation.
The rally belied a string of poor economic data from Beijing and Tokyo as demand for safe-haven assets waned, yet investors remained on edge due to lingering concerns about growth and the health of the financial sector…

PBOC minutes shows dilemma in trying to ease liquidity without weakening the yuan

China’s central bank faces a tough balancing act, trying to ease credit in the financial system without adding to pressures weakening the Chinese currency. Concerns about the yuan and the annual cash crunch ahead of next month’s Lunar New Year holiday dominated a meeting held by the People’s Bank of China on Tuesday, according to minutes of the meeting reviewed by The Wall Street Journal and to accounts from banking executives close to the PBOC…

Offshore Yuan overnight rates shoot up to 66.82%

Talking Points: – USD/CNH has seen aggressive price action around the adjustment to Offshore Yuan Overnight rates shooting up to a high of 66.82%. – This essentially nullifies the prospect of staying long USD/CNH, as aggressive carrying costs combined with PBOC action make the up-trend in the pair very risky to stay long of. – As we’ve been saying, for those that want to trade an Asian Slowdown, look to Japan…

PBOC sees 2016 economic growth to slow to 6.8% from expected 6.9% this year

China’s annual economic growth is likely to slow to 6.8 percent next year from an expected 6.9 percent this year, the People’s Bank of China said in a working paper published on Wednesday. The world’s second-largest economy still faces downward pressure and the impact of fiscal and monetary policies that were rolled out this year will be evident by the first half of 2016, the central bank said in the research report…

China’s PBOC ready to intervene to avoid sharp depreciation in the yuan in offshore markets

China’s central bank is on guard against a sudden attack on the yuan in offshore markets, and is ready to intervene if the gap between offshore and onshore exchange rates becomes destabilizing, sources involved in policy discussions say. Though the People’s Bank of China (PBOC) wants to avoid a sharp depreciation in the currency, it is comfortable with further weakening of the yuan against the dollar, policy insiders said…

China imports tumble 13.8 percent in August, mark 10th consecutive monthly drop

China’s imports tumbled in August, raising concerns about the health of the world’s second-largest economy and its contribution to global growth. The data will add to the pressure on Beijing policymakers trying to ensure China’s economy avoids a hard landing, though authorities will take some comfort that their efforts to steady the country’s stock markets were rewarded with a late rally on Tuesday…

Fed, ECB constantly failing to reach inflation target; Is 2% inflation too high to reach?

WASHINGTON — Is 2 percent inflation too high to reach? The Federal Reserve and European Central Bank have been striving to generate a small dose of inflation — around 2 percent annually, just enough to spur more spending and income but not so much that prices surge out of control. Both central banks are consistently failing.
And so the question has arisen of whether the Fed and the ECB should recognize that 2 percent inflation in a global economy awash in cheap oil…

The People’s Bank of China likely to ease monetary policy again by year’s end

China’s central bank is highly likely to ease monetary policy again by the end of this year, according to economists surveyed by Reuters, as it seeks to support a rapidly cooling economy and calm financial markets. The People’s Bank of China cut interest rates and lowered the amount of reserves banks must hold for the second time in two months on Tuesday, acting amid pressure from a global stock market rout and massive outflows from its markets…

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