China
IMF paper finds Latam growth likely to slow even if commodity prices remain elevated
Growth over next half-decade expected to be 150bp lower than during boom years; need for 'ambitious structural reforms' to secure 'medium-term growth'
Book notes: The Dollar Trap, by Eswar S Prasad
A lively and compelling analysis on currency wars in the wake of the financial crisis – and the likely persistence of the US dollar as the world’s pre-eminent currency
IMF charts path towards PBoC policy rate
Staff report encourages the People’s Bank of China to stabilise borrowing costs in the interbank market as an ‘interim step’ towards establishing a policy rate
Chiang Mai Initiative doubled in size to $240 billion
Financial safety net for China, Japan, Korea and the Asean nations doubled in size; Bill Allen describes the initiative as 'ornamental' as it has never actually been used
Brics nations launch development bank and reserve fund
Brazil, Russia, India, China and South Africa launch new institutions to fill the gaps left by the World Bank and IMF; Observers see challenges ahead
Price competitiveness strong in the US but weak in China, Bundesbank paper finds
Proposes ‘simple productivity approach-based' method for calculating a ‘consistent set of multilateral indicators' of price competitiveness
Chinese banks freed to set own RMB-dollar exchange rate
Chinese authorities hand banks freedom to set their own dollar exchange rates; central bank also widens renminbi trading band
PBoC approves direct trading between renminbi and sterling
The pound will become only the fifth currency that can be directly exchanged with the yuan; People’s Bank of China names China Construction Bank as renminbi clearing bank in London
MAS to offer overnight renminbi liquidity
Monetary Authority of Singapore says it will launch an overnight liquidity facility for Chinese currency in July; latest step in growth of offshore market
PBoC aims to galvanise lending by cutting reserve ratio for small banks
People’s Bank of China insists its monetary policy stance ‘has not changed’ as it cuts reserve requirements for smaller banks
US overtakes Taiwan as offshore RMB clearing centre
The value of RMB payments between the US and China jumped 229% in the year to April 2014, helping the US overtake Taiwan as the third-biggest offshore RMB clearing centre
PBoC launches $2 billion Africa investment fund
The People’s Bank of China will provide $200 million each year for a decade to finance development projects in Africa, as governor Zhou Xiaochuan criticises past investment deals
PBoC favours London as offshore RMB hub, says leading Chinese banker
The Chinese government and central bank 'think very highly' of London, says top Chinese banker who predicts the City will play a key role in renminbi internationalisation
Kohn compares UK and US macro-prudential experience
The former Fed vice-chair and member of the BoE's financial policy committee says any arrangement needs central bank in 'major role'
FX lending in China tops $1 trillion, new BIS figures show
BIS's Robert McCauley estimates FX loans to China hit $1 trillion last year, though the recent renminbi depreciation may now cause lenders to think twice
China should adopt new intermediate target for monetary policy, say IMF economists
Economists at the IMF analyse demand for money in China and conclude the PBoC would be better off targeting interest rates in the economy rather than monetary aggregates
Massive stimulus saved China from ‘great recession'
The rest of the world could have avoided recession too, had other governments dared implement such a ‘bold and powerful' stimulus package, St. Louis Fed paper suggests
Hong Kong banks' mainland exposure ‘not all hot money' says HKMA deputy
The right way to mitigate Hong Kong banks' exposure to mainland China is through supervising their credit risk and liquidity risk management, says Arthur Yuen
Offshore renminbi has increasing impact on Asian exchange rates
How long the independent impact will last will likely depend on China's progress in liberalising its capital account, according to working paper from the Bank for International Settlements
People's Bank of China hires Ma Jun as chief economist
High profile China economist makes switch to central bank to participate in ‘aggressive' economic reforms to ‘shape the future' of China's economy
PBoC doubles reminbi trading band
The People's Bank of China announced this weekend it will double the renminbi's trading band to let it fluctuate 2% either side of the bank's daily reference rate
World should brace for impact of rising Chinese exports, report warns
Array of ‘major problems’ afflicting the Chinese economy is likely to require renminbi devaluation, with knock-on effects for the rest of the world, research warns
Fate of renminbi market contingent on Chinese authorities’ resolve
Central bank officials from the UK and continental Europe agree the internationalisation of the Chinese renminbi is contingent on progress of Chinese reform
Markets see PBoC hand in RMB depreciation
The sharp fall in the RMB at the end of February is thought to have been a deliberate action by China’s central bank to engineer the development of a two-way market in the currency