Goldman Sachs’ Managing Director and Senior China Economist Tang commented on the Yuan following the Chinese banks’ intervention in the CNY markets.
Key Points:
PBOC to manage speed of CNY depreciation.
Expects 7 within 6 months.
CNY is now more flexible.
Interest rates in China have drifted lower even as the Fed has been hiking, supporting USD/Yuan.
China deleveraging means credit not so loose, weaker CNY is an offset.
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