China unexpectedly moved to weaken renminbi

China unexpectedly moved to weaken the renminbi

Asia again today
falls, investors are worried about
state of health of the Chinese economy, which,
it seems there has been a new bubble – on
the corporate debt market. A plus
markets still worried and the dynamics of the Chinese
RMB – the last eight sessions People
Bank of China strengthened its exchange rate, but
today headed for attenuation.
Thus, the central bank lowered the official
exchange rate by 177 basis points – is the maximum
drop in two months. Thanks to this morning, prices for precious metals
– gold, silver, the price increase was observed
also in oil futures. By 10:00 MSK
pair USD / CNY trading at 6.346
(+ 0.06%).

experts People
Bank of China are struggling to
achieve early internationalization
the yuan, to the currency included in the basket
IMF reserve currency. However, the country
It has yet to develop its financial
market to become a global financial
center, an analyst at Bank of China Lu
Lei. He was confident that the yuan will soon have to recognize
reserve currency.

On the other hand,
the financial model of the economy is very
important role played by the debt market, and
here in China there are some problems.
So, on the corporate securities market
there were signs of a bubble, and some
experts have already sounded the alarm.

China unexpectedly moved to weaken renminbi

Commerzbank analysts advise
for an urgent reform
This segment of the market, otherwise it may
end sadly.

Yesterday’s data from the
China strongly prevented the growth of the world
stock markets – Asia, Europe and
America at the end of trading on Tuesday
We were in the red zone. according to the latest
data, China’s imports in September fell to
17.7% in annual terms, exports fell
1.1%. Investors fear that imports
China falls for 11 consecutive months, because
that falling prices for commodities,
weakening domestic demand in the PRC.

At the beginning of the week, by the way,
on the Chinese stock market rally
caused by the decision of the central bank to raise
RMB official exchange rate and the expectation
V plenum later this month, where
The Communist Party will announce a new
Five-Year Plan. national currency showed
significant strengthening – the maximum for
1.5 months.

"central bank
Yuan will keep stable during
the next two to three weeks, while the IMF is not
will announce its decision on the basket
reserve currencies"- said Keniks
Lai, an analyst at Bank of East Asia Ltd. in Hong Kong.

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