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Yuan To Further Weaken This Year: Times

MNI (Singapore)

The yuan is expected to further release depreciation pressure this year as export growth is likely to slow while the Federal Reserve is seen accelerating rate hikes and balance sheet reductions, but the yuan still has ample buffer space given its last low point was around 7.1 against the U.S. dollar, the Securities Times reported citing analysts. There will be no panic about yuan devaluation as its two-way flexibility has been greatly strengthened, and the currency mismatch has also been significantly improved, the newspaper said citing Guan Tao, chief economist at BOC Securities. Guan warned that the yuan may come under pressure again should the Fed tightens more than expected, which could burst asset bubbles and trigger a recession, the newspaper said.

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