Created
: 2025.01.24
- English
- English
- What's Myforex
- Share
- Use tools
- Get information
- What's New
- Help center
- About us
- Customer support
- Terms and policies
-
-
PortfolioShare your portfolio and performance in real time -
Events & contestsEvents and contests held by retail brokers around the world
-
-
Real-time spread comparisonCompare spreads of major retail brokers in real time -
Volatility analysisVisualize volatility as a measure of daily market activity -
Swap point comparisonCompare buy and sell swap values for each broker by symbol -
Market rates & chartsCheck prices for all instruments offered by each broker -
IndicatorsProviding in-house developed indicators for MT4/MT5 -
Trading calculatorsCalculation tools for each broker to help you trade
-
-
World FX newsLatest news on forex and cryptocurrencies from around the world -
Broker informationTrading information of retail brokers worldwide -
MetaTrader4/5 user guideUser guide collection for the latest MetaTrader4/5 -
Economic calendarRelease calendar for indicators from official sources of major economies
USD/CNH drops to near 7.2500 following Trump's optimism on China, PBoC measures
World FX news
Breaking news
USD/CNH drops to near 7.2500 following Trump's optimism on China, PBoC measures
New
2025.01.24 14:18
2025.01.24 14:18
2025.01.24 14:18
- USD/CNH drops to the monthly low at 7.2475 on Friday.
- Trump stated that he "would rather not have to use tariffs on China" and is hopeful about reaching a deal.
- PBOC maintained the interest rate at 2.00% and injected 200 billion Yuan through a one-year MLF to financial institutions.
USD/CNH, representing the US Dollar (USD) against the offshore Chinese Yuan (CNH), breaks its three-day losing streak, trading around 7.2510 during the Asian session on Friday. The CNH gains ground as US President Donald Trump stated that he "would rather not have to use tariffs on China" and is hopeful about reaching a deal. Trump's remarks came after his conversation with China's President Xi Jinping on Thursday, hinting at potential progress in US-China trade negotiations.
Additionally, risk sentiment improved following late Thursday's remarks from Trump at the World Economic Forum in Davos, Switzerland. Trump said he wants the US Federal Reserve (Fed) to cut interest rates immediately. "With oil prices going down, I'll demand that interest rates drop immediately, and likewise they should be dropping all over the world," Trump said.
China's Commerce Ministry stated on Thursday that they are "willing to work with the US to promote stable and healthy economic and trade relations." The Ministry added that "tariff measures are detrimental to China, the US, and the global economy." These remarks came in response to US President Donald Trump's threat of a 10% tariff on Chinese imports.
On Friday, the People's Bank of China (PBOC) maintained the interest rate at 2.00% and injected 200 billion Yuan ($27.46 billion) through a one-year medium-term lending facility (MLF) to selected financial institutions, according to Reuters.
Additionally, Chinese authorities on Thursday introduced several measures to stabilize its stock markets, including allowing pension funds to increase investments in domestic equities. A pilot scheme enabling insurers to purchase equities will be launched in the first half of 2025, with an initial scale of at least 100 billion Yuan.
PBOC FAQs
The primary monetary policy objectives of the People's Bank of China (PBoC) are to safeguard price stability, including exchange rate stability, and promote economic growth. China's central bank also aims to implement financial reforms, such as opening and developing the financial market.
The PBoC is owned by the state of the People's Republic of China (PRC), so it is not considered an autonomous institution. The Chinese Communist Party (CCP) Committee Secretary, nominated by the Chairman of the State Council, has a key influence on the PBoC's management and direction, not the governor. However, Mr. Pan Gongsheng currently holds both of these posts.
Unlike the Western economies, the PBoC uses a broader set of monetary policy instruments to achieve its objectives. The primary tools include a seven-day Reverse Repo Rate (RRR), Medium-term Lending Facility (MLF), foreign exchange interventions and Reserve Requirement Ratio (RRR). However, The Loan Prime Rate (LPR) is China's benchmark interest rate. Changes to the LPR directly influence the rates that need to be paid in the market for loans and mortgages and the interest paid on savings. By changing the LPR, China's central bank can also influence the exchange rates of the Chinese Renminbi.
Yes, China has 19 private banks - a small fraction of the financial system. The largest private banks are digital lenders WeBank and MYbank, which are backed by tech giants Tencent and Ant Group, per The Straits Times. In 2014, China allowed domestic lenders fully capitalized by private funds to operate in the state-dominated financial sector.
Last updated
: 2025.01.24
Related articles
NZD/USD surges to near 0.5700 on Trump's friendly talk with China
13 minutes agoPound Sterling refreshes two-week high against USD as Trump endorses immediate rate cuts
23 minutes agoEUR/GBP hovers near 0.8450 ahead of PMI data from Eurozone, United Kingdom
37 minutes agoUSD/CAD moves below 1.4350 as Trump asks Fed to cut interest rates
2025.01.24 16:22USD/CHF remains on the defensive below 0.9050, US PMI data in focus
2025.01.24 15:44Forex Today: Japanese Yen rises on BoJ hike, attention turns to PMI reports
2025.01.24 15:42
FXStreet is a forex information website, delivering market analysis and news articles 24/7.
It features a number of articles contributed by well-known analysts, in addition to the ones by its editorial team.
Founded in 2000 by Francesc Riverola, a Spanish economist, it has grown to become a world-renowned information website.
Was this article helpful?
We hope you find this article useful. Any comments or suggestions will be greatly appreciated.
We are also looking for writers with extensive experience in forex and crypto to join us.
please contact us at [email protected].
Thank you for your feedback.
Thank you for your feedback.
Most viewed
NZD/USD surges to near 0.5700 on Trump's friendly talk with China
The NZD/USD pair soars slightly above the key level of 0.5700 in Friday's European session.
New
2025.01.24 17:11Pound Sterling refreshes two-week high against USD as Trump endorses immediate rate cuts
The Pound Sterling (GBP) jumps to near 1.2400 against the US Dollar (USD) on Friday.
New
2025.01.24 17:01EUR/GBP hovers near 0.8450 ahead of PMI data from Eurozone, United Kingdom
EUR/GBP recovers after registering losses in the previous session, trading around 0.8440 during early European hours on Friday.
New
2025.01.24 16:47USD/CAD moves below 1.4350 as Trump asks Fed to cut interest rates
USD/CAD extends its losses for the second consecutive day, trading around 1.4330 during the early European hours on Friday.
New
2025.01.24 16:22WTI advances to near $74.50, upside seems limited as Trump demands OPEC+ lower Oil prices
West Texas Intermediate (WTI) Oil price halts its six-day losing streak, trading around $74.40 per barrel during the Asian hours on Friday.
New
2025.01.24 15:52USD/CHF remains on the defensive below 0.9050, US PMI data in focus
The USD/CHF pair remains on the defensive around 0.9045 during the early European session on Friday, pressured by the weaker US Dollar (USD) broadly.
New
2025.01.24 15:44Forex Today: Japanese Yen rises on BoJ hike, attention turns to PMI reports
Here is what you need to know on Friday, January 24: The Japanese Yen (JPY) gathers strength against its major rivals early Friday following the Bank of Japan's (BoJ) decision to raise the policy rate by 25 basis points.
New
2025.01.24 15:42BoJ's Ueda: Price trend is rising towards 2% inflation target
Bank of Japan (BoJ) Governor Kazuo Ueda speaks at the post-policy meeting press conference on Friday, explaining the reasons behind the decision to raise the interest rate to 0.50%.
New
2025.01.24 15:38Silver Price Forecast: XAG/USD rises to near $31.00 on recent Trump remarks
Silver price (XAG/USD) recovers its recent losses, trading around $30.80 per troy ounce during the Asian trading session on Friday.
New
2025.01.24 15:09EUR/USD attracts some buyers to near 1.0450 ahead of Eurozone, US PMI data
The EUR/USD pair attracts some buyers to 1.0450 during the early Asian session on Friday, bolstered by the weakening of the US Dollar (USD).
New
2025.01.24 14:45Disclaimer:
All information and content provided on this website is provided for informational purposes only and is not intended to solicit any investment. Although all efforts are made in order to ensure that the information is correct, no guarantee is provided for the accuracy of any content on this website. Any decision made shall be the responsibility of the investor and Myforex does not take any responsibility whatsoever regarding the use of any information provided herein.
The content provided on this website belongs to Myforex and, where stated, the relevant licensors. All rights are reserved by Myforex and the relevant licensors, and no content of this website, whether in full or in part, shall be copied or displayed elsewhere without the explicit written permission of the relevant copyright holder. If you wish to use any part of the content provided on this website, please ensure that you contact Myforex.
Myforex uses cookies to improve the convenience and functionality of this website. This website may include cookies not only by us but also by third parties (advertisers, log analysts, etc.) for the purpose of tracking the activities of users. Cookie policy
