PBOC's Ramped-up Efforts to Defend Yuan May Have Limited Impact -- Market Talk
Chinese Exports Finished Strong in 2024
Stabilizing the Exchange Rates, the central bank continues to take action.
The People's Bank of China and the State Administration of Foreign Exchange have decided to raise the macro-prudential regulatory parameters for cross-border financing of enterprises and Financial Institutions from 1.5 to 1.75, effective January 13, 2025. By raising the "macro-prudential regulatory parameters," the upper limit for cross-border financing of enterprises and Financial Institutions can be increased, encouraging enterprises to increase cross-border financing, leading to an increase in the inflow of cross-border capital and thus increasing the supply of foreign currencies, which in turn helps curb the rapid depreciation of the Renminbi Exchange Rates from a supply and demand perspective.
China's CPI Edged Up 0.2% In 2024, Official Data Shows
National Statistics Bureau: The CPI in December 2024 increased slightly year-on-year, while the decline in PPI year-on-year has narrowed.
Dong Lijuan stated that in December 2024, the Consumer market is generally running smoothly, with the national CPI remaining unchanged from the previous month and increasing by 0.1% year-on-year.
National Bureau of Statistics: In December 2024, the CPI rose by 0.1% year-on-year, while the PPI fell by 2.3% year-on-year.
① In December 2024, the Consumer price index increased by 0.1% year-on-year; ② In December 2024, the year-on-year decline in the producer price index of industrial producers narrowed.