People's Bank Of China

Tyler Durden's picture

Russia Raises Gold Holdings By Over 7 Tonnes In February To Over 1,040 Tonnes





Russia has increased its gold holdings by 7.247 tonnes to 1,042 tonnes in February. Turkey and Kazakhstan also raised their bullion reserves, data from the International Monetary Fund showed today. Turkey's gold holdings rose 9.292 tonnes to 497.869 tonnes, the data showed. Many analysts are ignoring the important context of today's new geopolitical backdrop. Russia alone has some $400 billion in foreign exchange reserves - mostly in U.S. dollars. If they were to diversify just 5%, worth some $20 billion, of those reserves into gold - it would be equal to nearly 500 tonnes of gold or nearly 25% of global annual production.  It will be interesting to see what Russian demand is in March and indeed in the coming months. Sanctions could lead to materially higher demand from the Russian central bank, Bank Rossii.

 


Tyler Durden's picture

Frontrunning: March 18





  • Lost Jet’s Path Seen as Altered via Computer (NYT)
  • Fed Links Low Rates to “Persistent Headwinds” in Economy (Hilsenrath)
  • Top German Court Clears Euro-Zone Bailout Fund (WSJ)
  • U.S., EU set sanctions as Putin recognizes Crimea "sovereignty" (Reuters)
  • Indian wealth effect: Sensex, Nifty hit life highs as domestic-focused firms rally (Reuters)
  • China bond default has positive effect on local government groups (FT) - unless it's negative
  • Russia tensions  risk higher gas prices (FT)
  • China Home-Price Growth Slows in Big Cities on Tight Credit (BBG)
  • ECB's Weidmann says German surpluses "here to stay" (Reuters)
  • Microsoft Office for iPad (AAPL) to be introduced this month (The Verge)
 


Tyler Durden's picture

China Widens Dollar Trading Band From 1% To 2%, Yuan Volatility Set To Spike





In the aftermath in the recent surge in China's renminbi volatility which saw it plunge at the fastest pace in years, many, us included, suggested that the immediate next step in China's "fight with speculators" (not to mention the second biggest trade deficit in history), was for the PBOC to promptly widen the Yuan trading band, something it hasn't done since April 2012, with the stated objective of further liberalizing its monetary system and bringing the currency that much closer to being freely traded and market-set. Overnight it did just that, when it announced it would widen the Yuan's trading band against the dollar from 1% to 2%.

 


Asia Confidential's picture

Emerging Market Banking Crises Are Next





Yuan volatility is part of a major rebalancing of global trade. The next phase of EM turmoil will involve banking crises in several countries including China. 

 


Tyler Durden's picture

Frontrunning: February 19





  • Ukraine leader denounces coup bid, West weighs sanctions (Reuters)
  • Time to buy Imodium calls: Kuroda Easing Doomed as Yen Seen Missing 120 Level (BBG)
  • Teens Disappear From U.S. Workforce (BBG)
  • Fed Sets Rules for Foreign Banks (WSJ)
  • Quant Funds Feel Investor Bite After Underperforming (BBG)
  • China Probes Qualcomm, InterDigital Over Monopoly Concerns (WSJ)
  • Capital One says it can show up at cardholders' homes, workplaces  (LATimes)
  • SEC Gains Power to Take Profit Made From Insider Trading (BBG)
 


Tyler Durden's picture

Frontrunning: February 18





  • Carl Icahn wins again: Actavis to Buy Forest Labs for $25 Billion (WSJ)
  • ECB governing council member attacks German court ruling on OMT (FT)
  • China Tackles $1 Trillion Data Gap as Xi Changes Metrics (BBG)
  • FX Traders Facing Extinction as Computers Replace Humans (BBG)
  • BOJ Boost to Loan Programs Signals Room for More Easing (BBG) - actually no it doesn't as it was "factored in"
  • Four killed in Thai clashes; PM to face charges over rice scheme (Reuters)
  • Goodbye unsterilized SMP: Bundesbank Backs Measure to Boost Funds in Banking System  (WSJ)
  • Iranian Hacking to Test NSA Nominee Michael Rogers (WSJ)
  • Ukraine Clashes Leave Dozens Wounded as Putin Resumes Bailout (BBG)
 


Tyler Durden's picture

Frontrunning: February 10





  • Yellen's first test (Reuters)
  • Let weak banks die, says eurozone super-regulator (FT)
  • Yellen, Carney Face Explaining Policy as Benchmarks Near (BBG)
  • Commerzbank Said Seeking Debt Buyers in $6.8 Billion Spain Exit (BBG)
  • Junk Yield Premiums Soar on China’s Looming First Default (BBG)
  • Millions Trapped in Health-Law Coverage Gap (WSJ)
  • Mandel Tops Best-Earning Hedge Funds for Clients in 2013 (BBG)
  • Swiss Brace for Sour EU Relations After Immigration Vote (BBG)
  • Detroit Bankruptcy Talks to Resume (WSJ)
 


Tyler Durden's picture

Frontrunning: January 28





  • Emerging markets pray for Wall Street tumble (Reuters)
  • Yellen Faces Test Bernanke Failed: Ease Bubbles (BBG)
  • Samsung sets new smartphone sales record in fourth quarter, widens lead over Apple (Reuters)
  • China’s Foreign-Reserves Investment Chief Said to Depart Agency (BBG)
  • China’s Rescue of Troubled Trust May Stoke Risk-Taking (BBG)
  • Ukraine PM Azarov offers to resign 'to help end conflict' (Reuters) ... And Russia says may reconsider aid if this happens
  • But... but... it was all gold's fault: India Unexpectedly Raises Rate as Rupee Risks Inflation Goal (BBG)
  • Former Belgian king 'boycotting' public events after complaining £760,000 is not enough to live on (Telegraph)
  • Greek disposable income tumbles 8% in Q3 (Kathimerini)
 


Tyler Durden's picture

No, There Is No Stoppage Of Cash Transfers In China





"The PBOC has not—repeat not—asked Citibank to stop customers from wiring funds. Customers can still log on to their account to put in fund transfer requests at any time. The receiving bank (non-Citibank) will process the funds to be transferred on the next business day, as it always does. Because of the Lunar New Year break, the next business day is Friday Feb. 7. This is no different from the practice of banks throughout the world. Chang's understanding of Chinese culture evidently does not extend to the timing of bank holidays."

 


Tyler Durden's picture

"China Expected To Announce It Has More Than Doubled Its Gold Reserves", Shanghai Daily





Shanghai Daily: "China may soon announce an increase in its official gold reserve from 1,054 tons to 2,710 tons, Jeffrey Nichols, managing director of American Precious Metals Advisors, said. The People’s Bank of China has not reported any increase in official gold holdings since 2009, when the central bank said the official reserve was at 1,054 tons, which accounted for only about 1 percent of its multi-trillion foreign exchange reserves. The PBOC has been “surreptitiously” adding to its official gold reserves. It has bought a total of 654 tons in 2009 through 2011, another 388 tons in 2012, and more than 622 tons last year, mostly from domestic mine production and secondary supplies, Nichols said in a commentary posted on NicholsOnGold.com yesterday. Central bank purchases comprise the smallest fraction of global gold demand — less than 10 percent. “If China announces an increase in gold reserves, there would be an immediate drag-up force in the gold market,” Albert Cheng, managing director of the industrial association World Gold Council for the Far East, told Shanghai Daily. China is the biggest gold consumer and producer in the world."

 


Tyler Durden's picture

Frontrunning: January 8





  • Here comes JPM's next multibillion legal reserve: Federal Probe Targets Banks Over Bonds (WSJ)
  • Mulally Bows Out of Microsoft CEO Race, Staying at Ford (BBG)
  • United States sending more troops and tanks to South Korea (Reuters)
  • Eurozone unemployment sticks at record high (FT)
  • China-Japan 'Voldemort' attacks up ante in propaganda war (Reuters)
  • Alternative Lenders Peddle Pricey Commercial Loans (WSJ)
  • John McAfee: glad Intel dropping name from security software (Reuters)
  • Jobless Benefits Bill Stays Alive Amid Talks on Offsets (BBG)
  • Chicago Colder Than South Pole as Frigid Air Clamps Down (BBG)
  • Former Miss Venezuela shot dead in attempted robbery (Reuters)
 


Tyler Durden's picture

China Bails Out Money Markets For Second Day In A Row, Following Repo Rate Blow Out





As reported yesterday, following a surge in various short-term and money market rates in the aftermath of the Fed's taper announcement, the PBOC admitted after the close that it used Short-term Liquidity Obligations (SLO) to add funding to the market, and in doing so, bailing out money markets - the same product that nearly collapsed the financial system in the aftermath of Lehman. The bank didn't specify when it added the funds but, in another direct echo of the June panic, the PBOC said it is prepared to add more. However, it seems the market was less the convinced, and despite an early plunge in the seven day repo rate by over 2%, it suddenly and rapidly reversed direction and instead blew out hitting a whopping 9%, the highest since the June near-crash of the Chinese banking sector. The outcome: China said it injected another $50 billion to bailout and stabilize its money markets in what is increasingly looking like a replay of this summer's liquidity lock up. Perhaps the PBOC hinting at tapering at a time when the Fed is actually doing so is not the smart choice...

 


Tyler Durden's picture

China Also Tapers, Forced To Promptly Bail Out Money Markets





Overnight we warned that short-to-medium-term money market rates had spiked to record highs (1-Year rate-swaps over 5.06%) and that the PBOC was bravely standing firm on its (lack of) liquidity injections... that didn't last long. Despite the PBOC's veiled ongoing attempts to 'taper' its own liquidity provisions, as MNI noted, echoes of the June liquidity crunch were heard again in the Chinese money market Thursday and authorities moved to extend trading amid a surge in rates which quiet injections of funding by the People's Bank of China failed to stem. Jitters in the Chinese interbank market since the PBOC tried to force deleveraging in June highlights the nervousness of an overstretched banking system that is reliant on the central bank's largesse to ensure stable operations. It seems clear that the Chinese banks' PBOC taper tantrum will not allow the central bank to withdraw painlessly.

 


Marc To Market's picture

China: Forces of Movement and Forces of Order





In every organization, including the Chinese Communist Party, there are forces of movement and forces of order.  The forces of movement have moved into ascendancy in China and this was signaled by establishment of the special economic zone in Shanghai and the program emerging from recent Third Plenary Session.  However, the uncertainty over implementation kept domestic and foreign investors cautious.

 

 


Tyler Durden's picture

Bitcoin Tumbles After China Central Bank Bans Financial Companies From Using Digital Currency





As we said back in March, when Bitcoin's parabolic rise first started, it was only a matter of time before first one, then all central banks take on Bitcoin for the simple fact that it present too great a threat to the fiat system. Sure enough, on the chart below of BTC China it is quite clear just at what point overnight the People's Bank of China announced that Bitcoin is simply a virtual commodity and "isn't a currency with any real meaning" (paraphrasing Alan Greenspan), and that it officially bans financial companies from Bitcoin transactions.

 


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