China’s Race Against Time

China must adjust its exchange rate regime to permit faster yuan depreciation and reduce regular intervention in the foreign exchange market. Chinese authorities are caught between inevitable and accelerating outflows from diversification of household and corporate savings, and slowing inflows from foreign corporates and institutional investors. Newly reimposed restrictions on outbound capital flows highlight the current pressures on the currency, and may accelerate rather than slow an adjustment in the exchange rate regime.

Posted August 1, 2017
Facebook Twitter Pinterest