Free Republic

The People’s Bank of China have set the USD/CNY fixing for Monday at 6.6375, some 0.9% weaker than Friday’s fixing level of 6.5776. The figure, well above Friday’s close of 6.6150, was the weakest fixing level seen since December 2010.

There is a stark contrast between the PBOC and the US Federal Reserve’s approach to managing markets. The Fed tends to treat investors like the recently burgled: reassurance at every stage, no loud noises during the night. American central bankers have been signalling for two years that the crisis-era programme of vacuuming up bonds from the market, known as quantitative easing, would be wound up as the economy improved. ... China’s abrupt interventions have therefore come as a surprise to investors who have only recently gained direct access to the country’s A-share market. By Friday night, after five days of...

The price of bitcoin recovered from a low of roughly $380 and rose past $420 at press time on 11th April, on the news that Zhou Xiaochuan, the governor of the People’s Bank of China (PBOC), had issued new statements potentially clarifying the central bank’s position on bitcoin. According to reports, during Boao Forum, Xiaochuan offered his opinion on the nascent technology, saying that China would not seek to ban bitcoin and other digital currencies entirely.

Believe it or not Ripley! The People’s Bank of China(PBOC) recommended yesterday that 1 billion Chinese consider buying gold as a hedge against inflation and to preserve values in a world where currencies can fall. The PBOC Financial Markets Review came out just as several major currencies were indeed declining in value against gold; the dollar,1%, the Swiss franc,2.5%, t he British pound, 2%, and the Japanese yen, 2%. Wow! Be like the Fed telling you to buy oil stocks or crude oil futures due to expectation higher gasoline prices this summer. So, add the PBOC to other secular influences...

HONG KONG (MarketWatch) -- China's central bank could raise interest rates in the current quarter, according to a local media report. The rate hike is being considered as economic growth in the first quarter may exceed 11%, according to reports which cited People's Bank of China adviser Li Daokui in comments made to the China Securities News.