1/22/2021 Financial News: RMB Revenue Hits Two-week High; LNG’s Price Increases

Image source: https://www.souhu.com

1. 300% price increase of LNG

On Jan 18, 2021, As of mid-January, the Asian spot price of liquefied natural gas has climbed to more than 30 US dollars per million British thermal (1 million British thermal about 30 cubic meters), up 300% from a month ago. Some analysts pointed out that Australian natural gas producers will usher in huge profits. According to the Golden Ten data report, due to the impact of the CCP virus, the growth rate of global LNG production capacity declined in 2020, while East Asian countries such as China, Japan and South Korea are competing to buy LNG due to various factors such as cold waves and environmental protection, which has further pushed up the price.

https://www.sohu.com/a/445685977_507132?scm=1004.759017228124487680.0.0.0&spm=smpc.ch15.top-news-3.5.16112716992867bUtB14

2.Although RMB international payments fell in December 2020 but the ranking remained at fifth-SWIFT

Reuters, Shanghai, January 21-The latest report from the Association of Global Interbank Financial Telecommunications (SWIFT) stated that the share of RMB international payments in December 2020 fell slightly to 1.88% from the nine-month high of 2% in November; the ranking of RMB international payments remained global the fifth. SWIFT provided a press release and showed that the amount of RMB payments in December rose by 5.72% compared to November, while the value of global payments increased by 12.3% during the same period; if the international payment ranking in the euro area is excluded, the RMB dropped one place to eighth in December. The share is 1.16%

https://cn.reuters.com/article/offshore-renminbi-0121-thur-idCNKBS29Q0QF

3.Vice premier Liu He urges Financial institutions must continue to improve their capabilities to lend loans with daring, willingness and ableness and can-do attitude

On January 21, the seventh meeting of the State Council Leading Group for Promoting the Development of SMEs was held in Beijing. Liu He, member of the Political Bureau of the CPC Central Committee, Vice Premier of the State Council, and leader of the State Council’s Leading Group for the Development of SMEs presided over the meeting and delivered a speech. The meeting emphasized the need to emancipate the mind, raise awareness, and strive to help the private economy and SMEs solve the most immediate practical difficulties. It is necessary to grasp the continuity, stability and sustainability of policies, and vigorously support the healthy development of SMEs, and financial institutions must continuously improve their capabilities to ensure that they dare to lend, are willing to lend, can lend, and will lend money to those.

https://finance.sina.com.cn/china/gncj/2021-01-21/doc-ikftssan9269784.shtml

4.Risk appetite rebounds, RMB revenue hits two-week high, short-term expected to fluctuate with U.S. index

The Reuters BEIJING/SHANGHAI, January 21-The RMB exchange rate against the U.S. dollar closed up to a two-week high on Thursday. Traders said the market expectation of the Biden government’s economic stimulus plan continues to boost risk sentiment, and the RMB also benefits indirectly. The short-term RMB is expected to fluctuate with the US index, but it is still difficult to get out of the range.They also pointed out that the U.S.’s tough stance on China is difficult to reverse, and the market will still treat it cautiously; if the U.S. index continues to adjust, the RMB may also passively rise slightly; but if U.S. bond yields rise steadily, it is estimated that the U.S. index will have limited room for adjustment . The scale of southbound capital has not decreased recently, highlighting the pressure of outflow, which may also limit the performance of the RMB.

“Currently the market is also divided. Although the U.S. index is adjusted, it is still within the range, and the renminbi still has no direction,” said a trader at a Chinese bank.

https://cn.reuters.com/article/yuan-close-0121-thur-idCNKBS29Q17C

【G-Translators-Financial Team】

Proofreading-Mr. Y

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