Daily News Report – September 9

September 9 witnessed diverse and pivotal economic developments on the global stage—from strengthening monetary ties between Europe and China through the extension of a currency swap agreement until 2028, to a decline in Japanese stocks after a historic rally amid political turmoil, and a surprise move by Nvidia, which obtained limited licenses to sell its chips in China despite strict U.S. restrictions.

ECB and PBOC Extend Currency Swap Agreement Until 2028

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The European Central Bank (ECB) and the People’s Bank of China (PBOC) announced their currency swap agreement extension between the euro and the yuan for an additional three years, expiring on October 8, 2028, while maintaining the same conditions.

The arrangement’s maximum value is set at 350 billion yuan and 45 billion euros, allowing eurozone banks to access yuan liquidity when needed in case of currency market disruptions.
The ECB confirmed that this step strengthens global financial stability and reflects the growing scale of trade and investment ties between China and the eurozone.
The agreement was first signed in October 2013 and subsequently renewed in 2016, 2019, and 2022, before being extended again to 2028.

Japanese Stocks Close Lower After “Nikkei” Hits Record During Session

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Japanese stocks ended Tuesday’s trading lower after the Nikkei index erased early gains that pushed it above 44,000 points for the first time in its history amid political uncertainty following Prime Minister Shigeru Ishiba’s resignation.

The Nikkei closed down 0.42% at 43,459 points, while the broader Topix index fell 0.51% to 3,122 points, after finishing the previous session at a new record high.
The decline came as investors awaited political developments in Japan after the prime minister’s surprise resignation.
At the same time, the yen rose 0.31% against the U.S. dollar, reaching 147.04 yen per dollar.

Nvidia Secures Limited Licenses to Sell H20 Chips in China Despite U.S. Restrictions

Nvidia experienced a significant development in its dealings with the Chinese market after obtaining limited licenses that allowed it to continue operations despite U.S. restrictions. Key details include:

According to media reports, the U.S. company secured limited licenses permitting it to sell some of its advanced H20 chips to several clients in China.
This move is part of Nvidia’s efforts to maintain its presence in China—one of its largest overseas markets—despite strict U.S. export controls on advanced artificial intelligence technologies to Beijing.
Sources indicated that the licenses do not completely lift U.S. restrictions but offer Nvidia a temporary opportunity to recover part of the sales lost since the ban began last year.
High-performance chips like the H20 are central to the technological rivalry between the U.S. and China, making them direct targets of U.S. regulatory measures.
Despite this partial breakthrough, geopolitical tensions remain challenging for the company, especially given its heavy reliance on the Chinese market. Rising U.S.-China friction could exacerbate this vulnerability.
Analysts expect Nvidia to continue focusing on diversifying its markets and strengthening its presence in the U.S. and Europe as global demand for AI technologies grows.

Conclusion

The events of September 9 reflect a complex global landscape where political, economic, and technological factors intertwine: major powers are strengthening monetary cooperation to support financial stability, political shifts sway stock markets, and the technology sector remains an open battlefield between Washington and Beijing.

Global Economy Under the Spotlight

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