Yu Yongding on RMB Depreciation

An English article summarizing his 21st Century Business Herald interview is up.
Yu Yongding: A Floor for the Renminbi
The People’s Bank of China (PBOC) faces a dilemma. After nearly a decade of trying to curb expectations of continued currency appreciation (spurred by China’s current- and capital-account surpluses), it finally succeeded in the first quarter of 2014, when its forceful market intervention drove down the renminbi’s exchange rate to discourage carry trades. Now, however, the PBOC is facing an even more difficult challenge, as seemingly irreversible depreciation expectations undermine economic stability at a moment when China can least afford additional uncertainty.
Read more at https://www.project-syndicate.org/commentary/stemming-renminbi-depreciation-expectations-by-yu-yongding-2016-01#H7yBvUp0MhSexVL3.99

I covered the Chinese interview here: Yu Yongding: Don't Fear the Devaluation

No comments:

Post a Comment