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Foreign exchange market

Foreign exchange market
The global foreign exchange (forex) market has ballooned in recent decades as more and more economies liberalise their capital accounts.
last updated:
9 September, 2024
BYD delivered 4.27 million pure electric and plug-in hybrid vehicles in 2024, an increase of 41.3 per cent from a year earlier. Photo: Handout
Electric & new energy vehicles

BYD resorts to forex trading strategy to counter yuan’s volatility

The world’s largest EV maker is aiming to protect its growing global operations from yuan volatility amid rising trade tensions.

Hong Kong Monetary Authority (HKMA)

Hong Kong’s Exchange Fund reports fifth-best return despite fourth-quarter loss

Banking & finance

Standard Chartered banks on yuan assets amid US-China tensions

Banking & finance

China to allow foreigners to take onshore bonds offshore via repos, derivatives

China is seeking to open up its markets and support Hong Kong’s status as an offshore yuan hub.

PBOC governor Pan Gongsheng. Photo: Reuters
Hong Kong economy

My Take | The US$3.2 trillion question: how much of China’s forex reserves for Hong Kong?

The central bank’s pledge to increase reserve holdings of the Hong Kong dollar shows a commitment to the city’s financial hub status.

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Banking & finance

Chinese regulators show support for markets ahead of Trump’s inauguration

The move is seen by some participants as an effort to boost investor confidence in times of uncertainty.

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South Korea

Seoul pledges US$247 billion to survive ‘uncertainty’ of Trump’s trade policies

Fearing potential trade disruptions from US policies under President Trump, Seoul is trying to mitigate the effect on key sectors like semiconductors and batteries.

Photo: TNS
China's economic recovery

China ‘confident’ in 2025 economic rebound, Hong Kong is key: central bank chief

Mainland’s property market is improving, PBOC governor Pan Gongsheng says, reiterating importance of special-purpose bonds for buying idle land and unsold homes.

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Yuan

To boost yuan, China’s central bank allows firms to borrow more foreign debt

For companies that have reached the upper limit of overseas financing, a relaxation may be welcome, but the move’s effectiveness remains unclear as rate spread with US dollar widens.

Yuan

China’s central bank rhetoric on yuan stability takes aim at depreciation risks

An exchange rate of 7.6 to the US dollar by the end of 2025 could be on the cards, analysts say, as Donald Trump’s impending policies may further weaken the battered yuan.

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China’s yuan remains under pressure as the safe-haven US dollar strengthens amid expectations that the US Federal Reserve will slow the pace of rate cuts this year. Image: Shutterstock
Yuan

China’s battered offshore yuan hits 2-year low against US dollar

And China’s ‘moderately loose’ monetary policy could further widen interest-rate differentials, straining the yuan more, analyst predicts.

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On the last trading day in 2024, the yuan touched 7.3698 per US dollar and reached its weakest level since October 2022. Photo: AP
Cryptocurrency

China’s new forex rules require banks to tighten scrutiny on crypto trades

The State Administration of Foreign Exchange wants banks to monitor and report risky trades, including those involving cryptocurrencies.

Yuan

US Fed’s hawkish rate-cut forecast slams China’s yuan

China’s currency, hammered since Trump’s re-election, has depreciated further against the US dollar, despite the yuan’s share among global payments rising.

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Currencies

Opinion | Trump’s fuming over unlikely ‘Brics currency’ belies risks of de-dollarisation

Trump’s threat of tariffs over a currency that will likely never exist is a reminder of how much clout the dollar has in the developing world.

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Russia only started pushing to reduce global reliance on the US dollar after its banking system was cut off from the world’s reserve currency. Photo: AFP
United States

Opinion | An America awash in global capital risks spreading financial instability

Free capital flows accelerate economic growth but can also be destabilising, spreading jitters via financial markets.

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Traders work on the floor of the New York Stock Exchange on November 7, a day after the S&P 500 and Nasdaq Composite closed at all-time highs. Photo: Getty Images via AFP
Yuan

Yuan to catch up to China’s position in world’s economy: ex-official

Outspoken former Chongqing mayor Huang Qifan says Hong Kong can play a key role in the internationalisation of the yuan.

Banking & finance

Goldman Sachs CEO says it is too difficult to get capital out of China

With venture capital transactions by American investors at the lowest level in nearly four years, investors need reassurance, Solomon says.

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Hong Kong Monetary Authority (HKMA)

Hong Kong’s financial war chest posts record gain of US$28.8 billion

Lawmakers asked whether the fund could give more to address the government’s deficit, but HKMA’s CEO urged sticking with an existing formula.

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Hong Kong Monetary Authority CEO Eddie Yue Wai-man, pictured at a media briefing on November 4, 2024. Photo: Enoch Yiu
US-China relations

US financial-sanction threat should make China rethink forex holdings: economist

‘Possible future sanctions from the US’ under a new US president have set off alarms in Beijing’s policy circles.

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Yuan

Beijing urged to offer more yuan loans overseas to help dethrone US dollar

National Academy of Development and Strategy says China should be main source of liquidity for developing countries.

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China manufacturing

Why ‘significant’ shipping deal bolsters China’s manufacturing, boosts yuan use

Hudong-Zhonghua Shipbuilding is due to deliver six vessels to a Hong Kong containership lessor by 2028.

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In terms of global shipbuilding orders, China has gradually pulled ahead of South Korea amid intense competition between their respective shipyards. Photo: Xinhua
Yuan

China’s yuan faces volatility amid US pressure and home-grown stimulus: analysts

A stronger yuan could drag down China’s export growth, and the central bank is expected to guard against excessive appreciation.

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Strong US jobs data released last week could affect the exchange rate between the US dollar and Chinese yuan, according to some analysts. Photo: Shutterstock
Banking & finance

HKMA wants to continue developing Greater Bay Area, expand connect schemes

The de facto central bank will work with mainland authorities to develop the Greater Bay Area and expand cross-border trading, CEO Eddie Yue says.

Yuan

China’s yuan gains ground after rate cuts, exporters’ US dollar exodus

Cuts by the Federal Reserve have prompted exporters to convert their US dollar assets into yuan, strengthening China’s currency.

Singapore

Singapore Exchange eyes Middle East move to target Dubai-bound hedge funds

The planned expansion comes as major fund managers flock to Dubai, attracted by favourable tax conditions and government incentives.

Dubai’s Museum of the Future. A wave of fund managers have flocked to the Middle Eastern emirate in recent months. Photo: Xinhua
Banking & finance

Dump or buy more? China’s holding of US debt in spotlight after Fed’s rate cut

Continued diversification of reserve portfolio may be in order, but into what, and at what speed, are pressing questions.

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Jerome Powell, chairman of the US Federal Reserve, announced a cut to its benchmark interest rate on Wednesday. Photo: Bloomberg
Bonds

China’s stealthy yuan support ebbs, denting hot hedge fund trade

A lucrative trade that helped hedge funds ratchet up profits on Chinese debt instruments is starting to lose its charm, analysts say.

Banking & finance

Explainer | What 3 changes has China’s central bank made amid monetary policy reshuffle?

China’s central bank has conducted at least three large monetary adjustments since Pan Gongsheng was named People’s Bank of China governor in July 2023.

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