Entries Categorized as 'china'

China’s 2016 Yuan Policy

Date January 7, 2016

What is China doing with the Yuan? 1. Front loading yuan weakness 2. Yuan depreciation is a policy tool. With SDR decision in the rearview mirror, China is stepping up their currency reform. Its the first year of their 5 year plan to rebalance the economy 3. Yuan intervention overnight is a familiar tactic used […]

Chart: Chinese Rate Hike Doesn’t Matter

Date April 5, 2011

For the second time this year and the fourth time since 2010, the Chinese government raised interest rates by 25bp, bringing its lending and deposit rates to 6.31 and 3.25 percent. Like many other countries around the world, China is worried about rising inflation pressures and the negative impact that it could have on inflation […]

Diminishing Impact of Chinese RRR

Date March 18, 2011

China raised their reserve requirement ratio today for the third time this year and the ninth time since the beginning of 2010. I don’t have time to write much about this but I want to point out that Chinese is having a diminishing impact on the market. This is what I wrote last month: With […]

China vs. Japan vs. U.S. and Yuan

Date February 14, 2011

News that China surpassed Japan as the world’s second largest economy is one of the biggest stories in the financial markets. For more than 4 decades, the only country with a larger economic output than Japan was the U.S. However over the past 20 years, the Japanese economy stagnated, giving China the opportunity to usurp […]

Impact of Last 3 China Rate Hikes on FX

Date February 8, 2011

With each Chinese rate hike, there has been a smaller and smaller impact on the currency market. The first rate hike back in October elicited the biggest reaction because it was the first rate hike in nearly 3 years. At the time, all of the pro-cyclical currencies plunged against the U.S. dollar with the euro […]