The Chinese yuan may weaken into the 7s. If so, Chinese investors may be looking to take their money out of the country in greater numbers.
Share to linkedin
Some China bears and financial pundits are fuelling a speculative frenzy that the psychologically important level of 7 for yuan-dollar rate may be breached around the G20, assuming Trump and Xi Jinping fail to show how much they really are BFFs. "It's impossible to forecast," says James Barrineau, co-head of emerging market debt for Schroders."A lot of this depends on how Trump gets up in the morning. I supposed everyone’s base case is that there will be further tariffs on China. You have to have that as your base case."On the negative side, fixed asset investment and industrial production have come in lower than expected. Businesses are generally more sensitive to the recent upsurge in trade tensions with the U.
The Chinese central bank is said to be selling yuan to swamp for Hong Kong dollars, pulling some liquidity out of the A-shares, but at least potentially keeping the currency strong. Photographer: Paul Yeung/BloombergSome $16 billion has flowed into the Chinese bond market in net terms in May alone, which is the largest inflow so far this year. The Chinese bond market is 15.6% larger than it was before Barclays added it to the index, but foreigners still only own 3.
South Africa Latest News, South Africa Headlines
Similar News:You can also read news stories similar to this one that we have collected from other news sources.
Low interest rates and sluggish growth may lead to currency warsDeclaring trade peace might be the best way to get a cheaper dollar
Read more »
China’s grand, gloomy sci-fi is going globalIt provides an outlet for subtle dissent
Read more »
Take Five: Big in Japan - trade war, currency war, real warTAKE FIVE: With more and more central banks pivoting towards policy easing, the issue of exchange rates looms large
Read more »
Facebook wants to create a worldwide digital currencyIf each of Facebook’s 2.4bn users converted a slice of their savings into Libras, it could become a widely circulated currency
Read more »
What Facebook’s new currency means for the banking systemBanks should worry about the potential behind Facebook's new digital currency
Read more »
Facebook's Proposed Crypto-Currency: More Pisces Than Libra For NowFacebook's proposed crypto-currency - 'Libra' - faces a damning dilemma. Its issuers can render it regulatorily tolerable only by rendering it monetarily superfluous. It is accordingly doomed to no better than glorified PayPal status.
Read more »