1.The Dollar Index Rose Sharply; the Yuan Exchange Rate Hit the Biggest Drop in 3 Months
On June 17, the mid-rate of the RMB against the USD was 6.4298, a sharp depreciation of 220 basis points from the previous trading day, approaching the 6.43 mark. On the same day, the onshore RMB fell three times in a row against the USD during the day, with the drop once expanding to 0.5%, the largest single-day drop since March. At the same time, the offshore yuan exchange rate shocked downward, losing the 6.43 mark. By the close of business at 16:30 yesterday, the onshore and offshore RMB to USD exchange rates were at 6.4277 and 6.4340, respectively.
2.Communist China’s Copper Exports Hit a 14-Month High in May and Rose for the Third Consecutive Month
June 18 (Reuters) – Communist China’s copper exports rose for a third straight month in May, reaching their highest level since March last year. Higher international copper prices encouraged traders to export more metal overseas; customs data showed on Friday. Communist China’s General Administration of Customs said exports of unforged copper and copper material in May were 79,044 tons. That was up 3.4 percent from April and 67.7 percent from a year earlier, reaching the highest level since March 2020 – when the outbreak of the New Coronavirus caused Communist China to export nearly 94,000 tons of copper as soon as demand collapsed.
3.Total U.S. Soybean Sales to Communist China up 1.29 Times Year-on-Year
The USDA weekly export sales report showed that total U.S. export sales of soybeans to Communist China (mainland) increased 1.29 times year-over-year, after increasing 1.34 times year-over-year the previous week. As of June 10, 2020, U.S. soybean export shipments to Communist China (mainland) for 2020/21 (which began Sept. 1) were 35.02 million tons, up from 12.8 million tons a year earlier. The U.S. shipped 0.45 million tons of soybeans to Communist China that week, compared with the previous week’s 0.66 million tons of soybeans. The amount of 2020/21 U.S. soybeans sold but not shipped to Communist China so far is 691,000 tons, down from 692,000 tons a week ago and down from 2.806 million tons a year ago. Total U.S. sales of soybeans to Communist China (sales already shipped and not yet shipped) so far in 2020/21 are 35.71 million tons, up 128.9 percent year-over-year, compared with 133.7 percent year-over-year last week 138.9 percent year-over-year two weeks ago.
4.Communist China Records Ninth Consecutive Month of Bank Surplus on Foreign Exchange Settlement in May
June 18 (Reuters) – Communist China’s bank balance surplus of 22.8 billion U.S. dollars in May has recorded a net balance for nine consecutive months, including a surplus of 26 billion U.S. dollars in the goods trade balance. Wang Chunying, deputy director of the Foreign Trade Administration, said Communist China’s foreign trade had maintained its growth momentum, with imports and exports showing a surplus of a certain scale, which is the main reason why Communist China’s bank balance and non-bank sector foreign-related payments maintain a surplus pattern. The data released by the Foreign Trade Administration shows that the bank balance surplus of 22.8 billion U.S. dollars in May and the January-April monthly average level is basically the same. In addition, the non-bank sector had a surplus of $19.7 billion, narrowing from the average monthly level of the previous four months.
5.FCC Further Implements a Ban on Huawei, Etc. Worried About Chinese Companies’ Participation or Threat to Security a Submarine Cable Project Is Shelved
The FCC passed a resolution on the 17th to further implement a ban on Huawei, ZTE, and five other Chinese companies selling telecommunications equipment in the U.S. The FCC’s acting chairman said the rule changes would help close loopholes in the ban and that the FCC would also revoke licenses issued to Chinese suppliers. The FCC will also revoke the licenses for Chinese suppliers, as a bid by Huawei’s China HuaHai Telecom, a Chinese company that has failed to select a contractor for a World Bank submarine communications cable project because of concerns that the Chinese Communist Party was threatening cybersecurity. The U.S. government already expressed concerns about the project’s security last year.
6.Renminbi’s Share of International Payments Falls to 1.9%, a Five-Month Low
The latest report released by the Society for Worldwide Interbank Financial Telecommunication (SWIFT) on June 17 shows that the share of RMB international payments fell to 1.9% in May, down from 1.95% in April and a five-month low. According to SWIFT data released on May 19, the RMB global payments ranking dropped to sixth place in the world in April 2021. In terms of percentage, the share of RMB global payments dropped from 2.49% in March 2021 to 1.95% in April 2021; in terms of value, RMB payments decreased by 30.49% in April 2021 compared to March, while the total value of global payments in all currencies decreased by 11.04% in the same period.
By【 G-translators – Financial Team】