In an interview with Reuters, Andrew Fennell, a director in Fitch’s sovereign ratings arm, said that a more flexible Yuan could serve credit positive for China’s sovereign credit rating.
Fennell said: “In fact, to the extent that moves are orderly and do not destabilize currency expectations or precipitate capital outflows, greater currency flexibility could even be viewed as positive from a credit perspective.”
The comments are unlikely to have virtually no impact on the CNY trades, as it is mainly driven by the sentiment around the US-China trade dispute.
The offshore Chinese Yuan staged a solid rebound from record lows against the US dollar, which triggered a risk-on rally across the financial markets this Tuesday.
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