Sources
Loading...
Additional media
Loading...
DeepNewz, mobile.
People-sourced. AI-powered. Unbiased News.
The People's Bank of China (PBOC) is setting the yuan fix ever so slightly at weaker levels, signaling an openness to further depreciation. This move comes amidst mounting pressure on Beijing to allow the renminbi to weaken further, as reported by the Financial Times. The yuan's depreciation is seen as a response to the negative RMB carry versus the USD and other currencies, making it rational for investors to short the RMB. The yuan is already weak in real terms.
1/8 Good FT article on currency pressures facing the PBoC. The negative RMB carry versus USD and other currencies, combined with very limited RMB upside, makes it rational for anyone who can short the RMB to do so. https://t.co/A0wcO0C3Rn via @ft
FT story summarizing the pressure the PBOC now faces to allow additional depreciation of the already weak (in real terms) yuan. Alternative headline would be market wants to push the world's biggest manufacturing surplus up more! https://t.co/Av8uflUD5h https://t.co/hnxwXSJFhQ
Pressure Mounts On Beijing To Allow Renminbi To Weaken - FT https://t.co/HUSa1IuUIZ
