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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.
A trader at the New York Stock Exchange at the opening bell on April 21, as Wall Street stocks opened lower amid lingering uncertainty over US President Donald Trump’s trade policy. Photo: AFP
United States

Outside In | Uncertainty unleashed by Trump 2.0 will exact a high price

Companies and countries alike are seeing hedging costs hit the roof amid a loss of trust and certainty in the US, the dollar and Treasuries.

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Mainland China

China takes steps to boost yuan with overseas gold storage facilities

US-China trade war

China rolls out plan to promote its own payment system as US trade war simmers

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Yuan

Yuan trade settlements on rise amid ‘soaring volatility’ in US Treasury market

Washington’s policies seen opening door to greater yuan internationalisation, undermining but not removing US dollar’s dominance in global trade.

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China’s yuan accounts for 2.18 per cent of global forex reserves, compared with 57.8 per cent for the US dollar, according to the International Monetary Fund. Photo: AFP
US-China trade war

‘So inept’: Trump’s tariff war is hurting all US assets, investor warns

The trade war ‘puts the US in a bad situation’ as it accelerates a shift away from the dollar, veteran investor Mark Dowding says.

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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.

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Banking & finance

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

Three state-run funds vow to ramp up purchases to safeguard market stability, while one regulator pledges to free up more insurance funds.

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People pass screens showing data on stocks in Shanghai. Photo: EPA-EFE
China deflation

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

Chinese investors have no easy options as domestic real estate prices tumble and turbulence roils the financial markets.

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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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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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President Donald Trump holds a chart showing the reciprocal tariffs to be imposed on US’ trade partners at the White House on Wednesday. Photo: AFP
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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US President Donald Trump announces new reciprocal tariffs against America’s main trading partners in Washington on Wednesday. The move has put downward pressure on the yuan and sent gold prices soaring to record highs. Photo: AFP
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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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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The forces preventing yuan internationalisation parallel those hindering America’s re-industrialisation. Photo: Shutterstock
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.

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.

China’s central bank has repeatedly signalled its determination to stabilise the yuan. Photo: Reuters
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.

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.

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.

Looking across Victoria Harbour in Hong Kong. Photo: Yik Yeung-man
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.

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
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.

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.

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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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.

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.

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