SHANGHAI :
Will the Yuan-Dollar Exchange Rate Depreciate Sharply? Will China Lower Its Forex Reserves Significantly?
Xu Yanyan
DATE:  Jan 14 2019
/ SOURCE:  yicai
Will the Yuan-Dollar Exchange Rate Depreciate Sharply? Will China Lower Its Forex Reserves Significantly? Will the Yuan-Dollar Exchange Rate Depreciate Sharply? Will China Lower Its Forex Reserves Significantly?

No, and no. China's foreign exchange reserves will remain balanced. The two-way opening of the capital market will attract more foreign fund inflows. As the strong dollar cycle draws to a close, the depreciation pressures on the redback against the dollar will decrease this year.

The central bank's monetary policy committee proposed a slew of monetary policy tools at its fourth quarterly meeting last year to stabilize the yuan exchange rate at a stable, reasonable level and to maintain an equilibrium between interest rates, exchange rates and the balance of payments.

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Keywords:   Predictions2019,Forex