Given the string of political events in the next few months, weakness in the CNY against the USD and the CFETS trade-weighted basket will persist, believe DB analysts. Perry Kojodjojo and team note in their August 11 research piece titled “RMB: One year on….” that exporters are beginning to convert more of their FX proceeds back into RMB, while importers are becoming less active in buying USD.
RMB – The worst performing currency YTD
Releasing their research note on the first anniversary of the shock adjustment to the USD/CNY fixing mechanism on August 11, 2015, the DB analysts point out that the RMB complex has undergone a rollercoaster ride from alarm, to fear of the unknown, to acceptance of a “new norm.” Kojodjojo and...
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