17 May 2024
International Economy
... Read more
FileSize KB
7 May 2019
The trade talks between the US and China last week did not produce a satisfactory outcome either side. Moreover, the US President Donald Trump announced plans to further raise tariffs on USD200 billion of Chinese goods from 10 to 25 percent starting Friday, May 10. The latest move puts greater pressure on world trade and reflects Washington’s effort to force Beijing to pursue negotiation guidelines in order for both sides to reach a mutually-satisfying agreement and stop the trade war by the end of 2019.... Read more
19 Jul 2018
From the beginning of 2018 to July 19, the Yuan weakened by more than 3.5 percent against the US Dollar, representing a new record low of CNY6.73/USD. Factors contributing to a rapid softening of the Yuan over the past few months include heightened risks stemming from the US-China trade war, which have prompted China to switch to more accommodating monetary policy in an effort to ensure economic stability at home and maintain its economic growth. In so doing, China has injected liquidity into its banking system and cut the reserve requirement ratio (RRR) for commercial banks by 1.50 percent this year. Moreover, China has injected additional liquidity into its banking system via medium-term lending facility (MLF) while new Yuan loans grew to CNY1.84 trillion in June, bettering the CNY1.22 trillion reported over the past 12 months. If China sends signals to ease its monetary policy further or its economic performance continues to slow, it is expected that the Yuan will tumble even further and this warrants close monitoring in the future. ... Read more