Report
Liseth Galvis-Corfe

Re-thinking the Yuan

In January 2018 the People's Bank of China (PBOC) announced that it will remove the "counter cyclical factor" used to determine the midoint reference rate for the Yuan (CNY) against the US Dollar. This means that market forces will play a greater role in determining the level of the USD/CNY. Its removal, only a year after this safety measure was implemented, shows a remarkable confidence in the ability of Yuan to hold its own. It follows a year where the Chinese currency appreciated  by 6.3 per cent against the US Dollar, an abrubt turnaround  from the 7 per cent depreciation observed in 2016.

Provider
Economic Perspectives
Economic Perspectives

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Analysts
Liseth Galvis-Corfe

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