Chinese Yuan

The Japanese Yen tumbled to a fresh 20-year low after the Bank of Japan (BoJ) stayed its stimulative monetary policy course, eliciting losses that were partially echoed by the Chinese Renminbi and which likely helped to lift the U.S. Dollar broadly during the penultimate session of the week.

Beijing another step closer to full lockdown, Pantheon Macroeconomics see recession in China.

The Chinese Renminbi has probed below a notable level on charts in its largest weekly fall since March 2020, drawing attention from the speculative market that could soon make relevant the following insight from a former member of the People’s Bank of China (PBoC) monetary policy committee. 

The Renminbi has begun to ease lower against the Dollar following a 22-month rally and this week’s price action has prompted RBC Capital Markets and BNP Paribas to advocate that clients of the two banks buy USD/CNH in anticipation of a further climb during the weeks and months ahead.

Trade data from China released this morning showed a strong uptick in the trade surplus as exports (and imports) surged in January.

The UK is conducting a good portion of German and French Renminbi clearing despite the Yuan waning in importance for global international payments.