MONEY MASTER

 Key Takeaways PBOC Proposal:  Draft rule extends gold import permits to 9 months (from 6) and removes usage limits. More ports to be authorised for bullion clearance. Market Context:  Yuan appreciation against the dollar makes gold cheaper for Chinese buyers, boosting import demand. Sector Impact:  Easier rules could benefit  LBMA-accredited refiners  and support a struggling jewellery sector. Strategic Goal:  Part of Beijing’s broader ambition to strengthen influence over global commodity pricing. Macro Implications:  Could temper yuan’s rise, stimulate domestic gold demand, and enhance China’s role in international bullion markets. Policy Shift in Detail The  People’s Bank of China (PBOC)  is taking steps to smooth frictions in bullion imports by relaxing restrictions on permits and authorising more ports for clearance. While still keeping quotas in place, the new system increases flexibility without fully liberalising gold flows. Cur...

Key Takeaway:  Eurizon SLJ Capital CEO  Stephen Jen  expects the Chinese yuan to strengthen significantly to the  low-6 range per dollar , citing global pushback risks, capital repatriation potential, and undervalued Chinese assets. Current Performance Yuan up  2.4% vs. USD  in 2025, trading near  7.13 per dollar . However, it has  weakened against other major currencies : -9.6% vs. euro -5% vs. pound -4.6% vs. trade-weighted basket This divergence has fueled perceptions of an  “opportunistic devaluation.” Jen’s Bullish Case Target:  Yuan in the  low 6s , potentially around  6.25/USD  (~14% appreciation). A stronger renminbi could: Ease  trade tensions  by countering claims of predatory FX policy. Attract  foreign capital inflows  into undervalued Chinese markets. Encourage  repatriation of US$2.5 trillion  in overseas liquid assets held by Chinese firms. “A more reasonably priced renminbi and...

The People’s Bank of China (PBOC) set the yuan’s daily reference rate at  7.1161 per dollar  on Monday, its strongest level since November and the biggest upward adjustment since January, after the greenback weakened on  Federal Reserve Chair Jerome Powell’s dovish Jackson Hole remarks . The fixing came in stronger than Friday’s  7.1321 , signaling Beijing’s intent to stabilise the currency even as macro headwinds weigh on growth. Market Reaction Onshore yuan (CNY):  Strengthened 0.1% to  7.1605/USD , its highest since late July. Offshore yuan (CNH):  Also gained, with FX traders interpreting the aggressive fixing as stronger-than-expected, given the modest USD weakness. Bloomberg Dollar Spot Index:  Fell 0.8% following Powell’s speech, reinforcing yuan momentum. However, the yuan still  weakened against a basket of peers , according to Bloomberg’s CNY index, underscoring that the move was primarily  USD-driven rather than a broad-based ...

China’s central bank moved to shore up the yuan on Thursday, setting its daily reference rate well below analyst forecasts after the currency slid to a two-month low against the U.S. dollar. Key Points: Stronger Fixing:  The People’s Bank of China (PBOC) set the yuan’s reference rate around  7.15 per dollar , the biggest divergence from market estimates since April. Market Reaction:  The offshore yuan rebounded 0.2% to  7.1993 , after touching its weakest level since early June. Dollar Surge:  The move came as the U.S. dollar hit a two-month high, driven by stronger U.S. trade deals and Fed Chair Jerome Powell’s hawkish comments on interest rates. Regional Moves: Monetary authorities in  Indonesia  and  Hong Kong  also intervened to defend their currencies as the greenback’s rally pressured Asian FX markets. The yuan and Singapore dollar remained relatively resilient compared to other regional peers. Why It Matters: The PBOC is balancing...

Trading in the  Chinese yuan versus the US dollar  surged to new heights in  April 2025 , outpacing other major currency pairs as  market volatility  tied to US trade policy rattled global investors, according to the  Bank of England’s latest FX turnover survey . Dollar-Yuan Takes the Spotlight Daily average turnover  for the  USD/CNY pair  in London jumped  42%  to  $182.6 billion  since October 2024. The increase was  one of the largest among all currency pairs , outpacing US dollar trades with the  Australian and Canadian dollars . USD/CNY  now makes up  4.5% of London’s total FX volumes , up from  4% , reflecting its  growing importance .  FX Market Hits Record Levels London’s  foreign exchange trading  overall surged to a  record high  in April as  President Donald Trump’s new tariff threats  disrupted markets. Compared to April 2024,  total FX turn...

Tokenized Finance in Action GF Securities' Hong Kong unit has launched a tokenized security, known as  GF Token , which offers daily interest and can be redeemed daily. It's issued in USD, HKD, and offshore yuan. How It Works Benchmark: USD token is tied to  Secured Overnight Financing Rate (SOFR) . Investors: Open only to  institutional and professional investors . Platform:  Issued on blockchain  and traded on  Hashkey Exchange . Why It Matters Part of Hong Kong's push to become a  Web3 financial hub . Tokens offer utility for  idle capital , with potential for switching across tokenized assets. Daily interest products may provide  an alternative to money market funds  or traditional savings for sophisticated investors. MoneyMaster Take — Key Insights: Real-world tokenization is happening now  — not just hype. GF Token shows institutional DeFi in motion , offering flexible and regulated digital yield. Watch Hong Kong’s role in set...

With the anticipated impact of president-elect Donald Trump’s trade policies, currency traders are increasingly positioning the euro and yuan as likely to experience the most significant declines. This shift comes as Trump's proposed tariff policies are expected to drive the US dollar higher. In the week following Trump’s election victory, investors have leaned heavily into dollar call options —bets on a stronger dollar—primarily against the euro and yuan . Data from the Depository Trust & Clearing Corp (DTCC) highlights that euro-dollar and dollar-yuan options were the most actively traded on Monday, with dollar-yuan call option trades on the DTCC notably outweighing put options by a 3 to 2 ratio . Trump's tariff-heavy agenda , which includes a potential 60% fee on Chinese imports and an across-the-board 10% tariff on all US imports , is fueling these moves toward a stronger dollar. On the political front, European risks are compounding the outlook for the euro . G...