China has chosen to forgo a stable currency. That allows it greater traction over the domestic money supply and credit growth
China used to intervene directly—by buying and selling dollars—to get the exchange rate it wanted. As recently as 2016 it ran down its foreign-exchange reserves from $4trn to $3trn to support the yuan. But for the past four years or so its reserves have been stable; there has been no large-scale intervention to either put a floor under the yuan or to check its rise. The surprise is not that China has thrown a little sand in the gears of its currency market.
That is not all. China has been opening its markets to overseas investors. Non-residents can more easily buy and sell stocks and bonds on the mainland’s markets. China’s government bonds and “A” shares have qualified for inclusion in global benchmarks, such as theequity indices and the Bloomberg Barclays bond index, which are tracked by huge pools of capital. A steady flow of foreign purchases has pushed up the yuan. China has not stood in the way.
United States Latest News, United States Headlines
Similar News:You can also read news stories similar to this one that we have collected from other news sources.
Why Ted Cruz’s tweets have aged like milk in the Cancun sun“These Republicans who were so eager to jump all over California for their energy problems—are now doing these kind of gimmicks as the people in their own state suffer,” says Chris Hayes of Sen. Ted Cruz and Rep. Dan Crenshaw.
Read more »
Why People Fall For Conspiracy Theories
Read more »
Three years after ad controversy, D&G is still struggling to win back ChinaThe social media uproar surrounding pop singer Karen Mok's decision to wear Dolce & Gabbana has underscored the Italian label's ongoing difficulties in China following 2018's racism allegations.
Read more »
China celebrates as space station launch signals country's growing ambitionsThe first of four crewed missions to the Chinese space station was successfully launched early Thursday as the nation's deep-space ambitions took another meaningful step forward.
Read more »
WSJ News Exclusive | U.S., EU Forge Closer Ties on Emerging Technologies to Counter Russia and ChinaThe U.S. and the European Union plan to cooperate more on technology regulation, industrial development and bilateral trade following President Biden’s visit, in a bid to help Western allies better compete with China and Russia.
Read more »
China envía a 3 astronautas a su estación espacial TianheChina lanza su primera tripulación de tres hombres a su nueva estación espacial en su primera misión con astronautas en cinco años
Read more »