Yuan to face seasonal depreciation pressures due to offshore Chinese companies – Bloomberg

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China’s Yuan (CNY) may face seasonal depreciation pressures, as Chinese companies listed offshore are seen selling CNY worth $18.8 billion in three months to August to fund their dividend bill, according to Bloomberg. The companies sold CNY worth $19.6 billion last year. 

Bloomberg report adds that the payments come at a sensitive time when the yuan is at its weakest this year and speculation is mounting it will fall to 7 per US Dollar, regarded as a key psychological level.

 

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