Yuan to Remain Strong Before March: Times

The yuan may continue its current strength before the Federal Reserve starts its expected rate hikes in March, as the recent Russia-Ukraine conflict increases the demand for alternative yuan assets and China’s economic fundamentals continue to play a supporting role, the Securities Times reported citing Wang Youxin, senior researcher at Bank of China Research Institute. The cross-border capital flow and the yuan may become more volatile after the Fed Reserve’s March meeting, and companies should not bet on any one-way movement of the currency but make reasonable use of forex derivatives and yuan for settlement, the newspaper cited Wang as saying.