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TOPIC

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.
US dollar and euro notes are pictured on September 6, 2022 in Brest, western France. Photo: AFP
Banking & finance

Battered dollar drifts lower on tariff nerves

Investor confidence in the world’s reserve currency in question following stream of tariff pronouncements from US President Donald Trump.

Banking & finance

China ‘national team’ mounts intervention amid market slump, tariff war

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China deflation

Gold, dollars? China’s middle class unsure where to invest amid market chaos

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United States

US market extends drop as strong jobs report fails to soothe tariff fears

The S&P 500 Index and Nasdaq 100 Index futures sank as China imposed a 34 per cent tariff on all American imports.

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A screen shows the Dow Jones Industrial Average on the floor of the New York Stock Exchange on Thursday. Friday’s losses follow a massive wipe out by US stocks on Thursday that erased US$2.5 trillion in value in the wake of Trump’s drastic new trade tariffs which ignited widespread recession fears. Photo: EPA-EFE
Singapore

Ahead of Trump’s tariffs, most MNCs in Singapore worry about slowdown: survey

The survey by AmChamSG, conducted before Trump’s 10 per cent universal tariff move, reveals fears over rising costs and supply disruptions.

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Yuan

China battles to stabilise yuan after Trump’s tariffs spark market upheaval

China’s central bank set the currency’s fixing rate at its lowest level since January, as regulators warned of market volatility.

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Banking & finance

Macroscope | World is ready to cut US dollar down to size – but not too quickly

The US dollar is too central to the global financial system for the so-called Mar-a-Lago Accord to find traction outside the US. But the search is on for alternatives.

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There has been talk of a new Plaza-type accord to depreciate the US dollar and ensure US export competitiveness. Photo: Shutterstock
Indonesia

Indonesian rupiah’s low spotlights Prabowo policy concerns, global uncertainty

The decline in the currency led the central bank to intervene, stabilising the rupiah and restoring confidence.

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Banking & finance

Opinion | Like yuan internationalisation, US re-industrialisation is a fairy tale

As long as China keeps its capital account closed and the US keeps its own open, neither will be able to achieve its aim.

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Banking & finance

China’s 4 golden flowers: how Beijing invests its US$3.2 trillion reserves

The State Administration of Foreign Exchange entrusts managers in four ‘overseas offices’ to diversify its reserves and maximise returns.

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AIA Central in Central. Photo: Jonathan Wong
Digital currencies

Hong Kong’s dollar peg seen as advantage amid stablecoin growth

Stablecoin transactions are now a fifth of all cryptocurrency transactions, and they make it easier to transact in US dollar-backed assets.

As Hong Kong courts cryptocurrency business to the city, the local currency’s peg to the US dollar could be a standout advantage where stablecoins are concerned. Photo: Shutterstock
Donald Trump

Macroscope | What could force Trump to back down? Markets, if they wake up

Higher inflation, a sharp slowdown or both point to a much bleaker outlook for the US than markets anticipated when Trump won the election.

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China trade

Economists slam Trump’s currency claims, explain why Beijing wants yuan stable

Calling US president’s currency-depreciation allegations ‘ungrounded’, analysts say Beijing does not want to see the yuan weaken too much.

Yuan

China’s central bank vows to enhance yuan amid risks from strong US dollar

Adjustment of daily fixing seen as one way to resist depreciation pressure.

A 100 yuan banknote surrounded by US$100 bills. Photo: Shutterstock
Sri Lanka

Sri Lanka scraps pandemic-era ban on vehicle imports to reap tax rewards

Vehicle imports were banned in 2020 to save foreign exchange reserves, but the move deprived authorities of a lucrative revenue stream.

A Sri Lankan official looks at imported cars in the port facility at Hambantota in 2015. Photo: AFP
Banking & finance

Investors keen on using onshore Chinese bonds as repo collateral in Hong Kong

A repo is a short-term borrowing transaction to sell securities and repurchase them later at a slightly higher price.

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.

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Hong Kong Monetary Authority (HKMA)

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

The fund’s return fell 3 per cent in 2024 to HK$219 billion (US$28 billion) due mainly to a loss of HK$20.1 billion in the fourth quarter.

The Hong Kong Monetary Authority manages the Exchange Fund, the city’s war chest to defend the currency peg. Photo: Jonathan Wong
Banking & finance

Standard Chartered banks on yuan assets amid US-China tensions

The lender has already seen higher demand for foreign-exchange management and hedging, and the need will only grow, an executive says.

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.

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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China has pledged to increase its foreign exchange reserve holdings of Hong Kong dollars, but it is likely to keep around half of its portfolio in US dollars for “safety”. Photo: NurPhoto via Getty Images
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.

A woman passed the headquarters of the People’s Bank of China in Beijing. Photo: Reuters
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.

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.

China’s yuan is dropping to lows unseen in several years against the US dollar. Photo: Reuters
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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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.

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