Survey Shows PBOC Could Allow Yuan to Depreciate Without Major Disruption

Reported about 1 year ago

According to a Bloomberg survey of analysts and traders, majority believe that China could potentially loosen control over the yuan without causing a sustained market disruption. The survey, which included 24 financial institutions, indicates faith in the People’s Bank of China's ability to manage the exchange rate, despite pressure on the yuan. Respondents foresee the PBOC maintaining focus on yuan stability and preventing sharp declines, even amid expectations of a Federal Reserve interest rate cut that could strengthen the dollar. Chinese authorities have been gradually managing the yuan's decline this year, with some predicting a possible gradual devaluation in the coming months due to factors like dollar strength and external pressures.

Source: YAHOO

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