Yuan Unlikely To Depreciate Further

The yuan will likely not significantly depreciate further with policies to stabilise the currency kicking in and economic expectations improving, wrote Ming Ming, chief economist at CITIC Securities in a commentary. The central bank has abundant policy reserves including the introduction of countercyclical factors, increasing FX risk reserve ratio for forward FX sales and using FX reserves to intervene. However, the yuan may still face certain pressure with the U.S. dollar index likely to remain high as the U.S. economy may continue to show resilience this year amid fiscal expansion. (Source: 21st Century Business Herald)