Can China Depreciate Now That Reserves Are Stable?

According to a Reuters survey showed that the level of the yuan short positions more than doubled in the past two weeks, rose to the highest in five months, the reasons behind investors' expectations the PBoC about to tolerate further depreciation of the renminbi in order to stimulate the economy. June onshore renminbi exchange rate against the dollar fell a total of 587 basis points, banished web 0.9% decline is mainly concentrated in the United Kingdom after the referendum results were out.

...Multiple analysts believe that PBOC last month less on foreign exchange intervention is also one of the reasons foreign reserve unexpected rebound.

In addition, the Hang Seng said that the RMB will be in October officially joined the SDR basket of currencies, some foreign central banks or early deployment of RMB financial investments, such as the recent MAS announced that the RMB financial assets into foreign exchange reserves. Hang Seng expected, China's foreign exchange reserves will essentially remain stable at the end will be hovering at a level of about $ 3.15 trillion.
iFeng: 港媒:外储突回升 人民币可以放胆贬值了?

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