Free Trial

Pressure on Yuan to Continue Until End of Year

MNI (Singapore)

The yuan may continue to weaken over the rest of 2022 as U.S. yields may peak on expectations the Federal Reserve could end its rate hikes in H1 2023, reported citing AVIC Trust macro strategy director Wu Zhaoyin. The People’s Bank of China has ample tools to stabilize the yuan, including activating the counter-cyclical factor, adjusting the foreign exchange deposit reserve ratio and tightening liquidity in the offshore yuan markets the newspaper said. The PBOC’s raising of the foreign exchange risk reserve ratio on forward FX sales by 20% will add an additional cost of about 700 points, which is intended to curb FX purchases, the newspaper said.

To read the full story



MNI is the leading provider

of intelligence and analysis on the Global Fixed Income, Foreign Exchange and Energy markets. We use an innovative combination of real-time analysis, deep fundamental research and journalism to provide unique and actionable insights for traders and investors. Our "All signal, no noise" approach drives an intelligence service that is succinct and timely, which is highly regarded by our time constrained client base.

Our Head Office is in London with offices in Chicago, Washington and Beijing, as well as an on the ground presence in other major financial centres across the world.