China’s yuan going from strength to strength

China’s yuan going from strength to strength

In 2021, Beijing’s trade surplus reached an all-time high of $676 billion, boosted by buoyant demand for Chinese-made goods across the world, while a major decline in outbound travel amid the Covid pandemic also limited the deficit in services trade.

The surplus on China’s current account climbed to an eight-year high of $224.2 billion, while the capital account surplus hit $83.2 billion, the highest since records began in 2010, Bloomberg reports, citing calculations based on data released by the State Administration of Foreign Exchange.

The reported figures reflect the nation’s robust trade surplus during the coronavirus pandemic and inflows into yuan-denominated bonds, according to Stephen Chiu, chief Asia FX at Bloomberg.

The soaring surplus bolstered a rallying yuan that strengthened by 2.7% against the US dollar in 2021, extending the gains of 6.7% recorded for the previous year. China’s national currency is climbing toward 6.33 per dollar, a level last recorded in December, when the People’s Bank of China increased the foreign-currency reserve ratio to cool the gains.

“In 2022, overall forex settlements are likely to be similar to last year, especially in terms of a robust current account surplus,” Chiu told Bloomberg.

“Even though global economic growth may slow cyclically, China’s exports are likely to continue to constitute a large share globally because the pandemic continues.”

Last year, foreign investors reportedly expanded their holdings of Chinese sovereign bonds by 575.6 billion yuan ($90.9 billion), marking the fastest pace on record.

Meanwhile, foreign exchange settlement under securities investment in the capital account jumped to $23 billion in December, the highest since records began in 2010.

The big returns of yuan-denominated assets along with the stability of the yuan exchange rate attracts foreign capital, according to Ken Cheung, chief Asian FX strategist at Mizuho Bank, as quoted by Bloomberg.

For more stories on economy & finance visit RT's business section

Source: www.rt.com

The last notes - Экономика

most read news

#Экономика

Authorities in Warsaw have allowed citizens to forage for firewood in forests to keep their homes heated amid spiralling energy costs. Poland is in the midst of a coal shortage after banning Russian
подробнее...

Polish companies have limited the sale of coal in the country after blocking imports from Russia, Deputy Minister of State Assets Piotr Pyzik said during his speech in Parliament on Friday.He
подробнее...

The average price of petrol in the UK has gone above £1.70 a liter for the first time, according to the latest data revealed by the motoring organization RAC.The cost of unleaded petrol, the British
подробнее...

Europe’s largest producer of atomic energy, Electricite de France SA (EDF), usually exports cheap power during the winter but may be forced to import it this year, Bloomberg reported on
подробнее...

If a fresh wave of government assistance is not released immediately, some 500,000 small businesses in the UK will go bankrupt within weeks, the chairman of the Federation of Small Businesses (FSB)
подробнее...

The UK has introduced a 25% windfall tax on energy producers’ profits, which will fund support grants for residents who are unable to pay their soaring energy bills, UK Chancellor of the Exchequer
подробнее...

The suspension of Russian gas supplies would be “a serious blow” to the welfare of the Austrian people as it threatens some 300,000 jobs, Kronen Zeitung newspaper reported citing the Federation of
подробнее...

Several French cities have begun handing out food vouchers to the population to compensate for increasing prices, the TV channel France 2 reported on Monday.According to the report, citizens are being
подробнее...

Asian countries became the largest importers of Russian oil for the first time in April 2022, overtaking Europe, Bloomberg reported on Friday, citing Singapore-based analytics firm Kpler.Roughly 71.7
подробнее...

Global food insecurity has reached levels not seen since the financial crisis of 2008, according to Sara Menker, CEO of Gro Intelligence, a global company that uses artificial intelligence and public
подробнее...

President Vladimir Putin told the Eurasian Economic Forum on Thursday that Russia has maintained its position as the world’s leading wheat exporter.“We have become absolutely competitive at the global
подробнее...

Komatsu, Japan’s largest construction and mining equipment manufacturer, has resumed deliveries to Ukraine, halted after the launch of Russia’s military offensive, the Nikkei newspaper reported on
подробнее...

The US government has allowed powdered infant milk imports from the UK, the Food and Drug Administration announced in a statement on Tuesday, as the country is grappling with a severe shortage.British
подробнее...

Shipments of Russian oil to India exceeded 396,000 tons in March, according to the Ministry of Commerce. That is more than a 15% rise from the previous month and a 40% increase on an annual
подробнее...

An embargo on Russian natural gas would seriously affect the German economy, as well as society, Labor Minister Hubertus Heil said in an interview with news outlet Funke, published on Saturday.“We
подробнее...

A EU commissioner, Margrethe Vestager, told Germany’s Handelsblatt newspaper on Wednesday that European consumers will have to put up with permanent price increases for energy as the continent wants
подробнее...

The European Commission on Friday announced the introduction of an anonymous online platform for people to report any violations of sanctions on Russia and Belarus.“Aware of anyone violating EU
подробнее...

The Haidach underground gas storage facility in Austria may not be refilled by the next heating season due to a conflict between Berlin and Moscow over the seizure of Gazprom’s German subsidiary,
подробнее...