RMB steadies as China largely succeeds in RMB FX reform over past yearFX Daily; AsiaAugust 15, 2016 Posted by Fernand Kong, CFA Read More0 Comments
year after RMB’s sudden devaluation on Aug 11, 2015, China largely succeeds in
its objective of revamping the FX mechanism to make RMB more market oriented
and relative stable to a basket of currencies.
USD/CNH range bound between 6.6250 and 6.6740 since the beginning of August. 1
reserve dropped slightly in July, as a stable
RMB has eased downward pressure on China’s reserve.2
USD/CNH will be
trading in a slightly upward bias as recent weaker-than-expected economic data
suggest China might be running out of policy options to stimulate its economy.
The medium to
long term outlook for USD/CNH is still moving higher in an orderly fashion with
a possible target of 6.75 by year end.
sought stability and will prevent the RMB depreciating too fast.
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