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The market's expectation for the yuan...>

CHINA PRESS
MNI (Beijing)
CHINA PRESS: The market's expectation for the yuan to depreciate is only
"moderate," different from the 2015-2016 era when outlook as reflected in 1-year
NDF was often 4-5% depreciation, Guan Tao, a fellow at think tank China Finance
40 Forum wrote in Thursday's Shanghai Securities News. Data for yuan-dollar
settlement in Feb-Sept showed demand for the dollar in fact dropped from last
year, Guan said. The yuan's weakening has been normal reflecting both the
strength of the dollar and reaction to economic fundamentals, Guan said. Whether
the yuan breaches 7 against the dollar, regulators should be capable of managing
either outcome, Guan said. They should further increase the market's confidence
by having consistent policy measures, tools and goals, Guan wrote.
--MNI COMMENT: Guan, a former official at the PBOC, may be hinting that the
central bank should prepare for the yuan breaching 7: act fast, decisively and
resolutely thus properly guiding the market's expectations.    

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