Friday, 06 December, 2019

China’s Central Bank Digital Currency Is Reportedly Ready for Launch

Embedded Image China’s Central Bank Digital Currency Is Reportedly Ready for Launch
Ginger Lawrence | 12 August, 2019, 10:59

The US this week labelled China a currency manipulator, which may prompt counteractive measures.

U.S. President Donald Trump on Friday said he was not ready to make a deal with China and even called a September round of trade talks into question, reviving concerns on financial markets that the bilateral dispute is unlikely to end anytime soon.

US stocks fell on Friday, capping a week of trading that saw big swings and high volume.

Washington is delaying a decision about licences for U.S. firms to restart trade with Huawei Technologies, according to Bloomberg, while U.S. Senator Marco Rubio urged the White House on Thursday not to allow exception to the ban.

"The U.S. believes, in a geopolitical point of view, it's being contained by China with China's holding of its sovereign bonds", Chen said, .

The International Monetary Fund said in its annual report on the Chinese economy released Friday in Washington that if the U.S. escalates its current threat to add 10% extra tariffs on the remainder of its imports from China to 25%, growth would be trimmed by 0.8 percentage point, leading to "significant negative spillovers globally".

To anyone not paying attention, the numbers could paint the last week as a ho-hum one for markets: The S&P 500 was down just 0.5%.

Chinese 100 yuan banknotes are seen in a counting machine while a clerk counts them at a branch of a commercial bank in Beijing, China, in this March 30, 2016 file picture.

Russian Federation nuclear agency says 5 dead in missile test explosion
The agency lauded the work of the employees, who, it said, were well aware of the risky nature of experimental engine tests. An arms depot in Siberia saw 13 injured and 1 dead after a procession of blasts occurred at a military base.

The Dow Jones Industrial Average fell 90.75, or 0.3%, to 26,287.44, and the Nasdaq lost 80.02, or 1%, to 7,959.14.

The IMF Executive Directors acknowledged China's recent reform progress, in particular, in reducing financial sector fragilities and continuing opening up of the economy.

"It will be harder now in the next difficult financial moment for Treasury Department pronouncements to be credited by market participants", said Summers, emphasizing that "the move down in the yuan on Monday was not artificial - it was an entirely natural market response to newly imposed United States tariffs". All of that raised global recession fears as the escalating Sino-U.S tariff war took a toll on trade and investment.

Gold edged down by $1.10 to $1,496.60 per ounce.

Technology and communications companies were among the biggest losers in early trading.

Meanwhile, the Chinese yuan remained in the spotlight after the People's Bank of China (PBOC) set the official midpoint reference at 7.0211 per dollar on Monday, which was stronger than what analysts expected but was still the third consecutive session weaker than the key 7-yuan-per-dollar level.

Adding to the pressure, China's economic growth slowed to 6.2% in the second quarter, its weakest pace in at least 27 years, as demand at home and overseas faltered.

USA crude was down 0.48% to $54.24 a barrel and global benchmark Brent crude shed 0.43% to $58.28 per barrel.