Latest topics
Chinese Yuan remains in the spotlight – Societe Generale
Page 1 of 1
Chinese Yuan remains in the spotlight – Societe Generale
Chinese Yuan remains in the spotlight – Societe Generale
Mon, Aug 17 2015,
FXStreet (Edinburgh) - Strategist Kit Juckes at Societe Generale assessed the scenario post-PBoC moves last week.
Key Quotes
“The PBOC’s ‘devaluation that really wasn’t’ continues to attract the majority of headlines”.
“I wonder if the legacy of this regime shift will be felt for longer outside of currency markets and outside of China”.
“The FX adjustment is too small to make any difference to China, but the signal of reluctance to see a further unwarranted (real) appreciation, and the refusal to spend huge amounts of FX reserves countering capital outflows just to prevent the currency from adjusting, send two clear messages”.
“Firstly, that China’s economy is weak enough that a gesture was made, even if from a competitiveness standpoint it is a futile one, as well as being counter to the central direction of macro policy, which is to encourage a shift from export and investment-led growth to consumption-led growth”.
“The second is that China won’t (or can’t) continue to import disinflation through its currency policy”.
“Low imported inflation is a desirable state of affairs in a country that is promoting consumption and seeing strong real wage growth, but with disinflation, you can have too much of a good thing”.
https://www.fxstreet.com/news/forex-news/article.aspx?storyid=a4639a56-59df-49dd-a0a3-732747f9d551
Ponee- Admin
- Posts : 38267
Join date : 2011-08-09
Page 1 of 1
Permissions in this forum:
You cannot reply to topics in this forum
Sun May 05, 2024 11:37 am by kenlej
» Go Russia
Sun May 05, 2024 10:51 am by kenlej
» Textbook Tony
Mon Apr 29, 2024 4:13 pm by Mission1st
» The Rockefellers and the controllers are freaking out right about now
Fri Apr 26, 2024 11:16 am by kenlej
» Phony Tony sez: Full Steam Ahead!
Sat Apr 13, 2024 11:51 am by Mission1st
» Dave Schmidt - Zim Notes for Purchase (NOT PHYSICAL NOTES)
Sat Apr 13, 2024 11:45 am by Mission1st
» Russia aren't taking any prisoners
Fri Apr 05, 2024 6:48 pm by kenlej
» Deadly stampede could affect Iraq’s World Cup hopes 1/19/23
Wed Mar 27, 2024 6:02 am by Ditartyn
» ZIGPLACE
Wed Mar 20, 2024 6:29 am by Zig
» CBD Vape Cartridges
Thu Mar 07, 2024 2:10 pm by Arendac
» Classic Tony is back
Tue Mar 05, 2024 2:53 pm by Mission1st
» THE MUSINGS OF A MADMAN
Mon Mar 04, 2024 11:40 am by Arendac
» Minister of Transport: We do not have authority over any airport in Iraq
Mon Mar 04, 2024 11:40 am by Verina
» Did Okie Die?
Mon Mar 04, 2024 11:34 am by Arendac
» Hello all, I’m new
Wed Jan 31, 2024 8:46 pm by Jonny_5
» The Renfrows: Prophets for Profits, Happy Anniversary!
Wed Jan 31, 2024 6:46 pm by Mission1st
» What Happens when Cancer is treated with Cannabis? VIDEO
Wed Jan 31, 2024 8:58 am by MadisonParrish
» An Awesome talk between Tucker and Russell Brand
Wed Jan 31, 2024 12:16 am by kenlej
» Trafficking in children
Mon Jan 29, 2024 7:43 pm by kenlej
» The second American Revolution has begun, God Bless Texas
Mon Jan 29, 2024 6:13 pm by kenlej