Asia Calling: CNY - A Basket Currency, Not a Basket Case

Global Macro Strategy

Callum Henderson

Macroeconomics

<p>Having received a number of questions about whether China is likely to devalue the Chinese yuan (CNY), this is a quick note on the subject. The bottom line is that speculation that Beijing is studying a possible devaluation of the CNY represents a veiled message sent in the context of rising trade tensions out of Washington DC and ahead of the US Treasury's semi-annual FX report, that it does NOT represent a change in Chinese FX policy and is very unlikely to happen unless the Chinese feel…</p>

Having received a number of questions about whether China is likely to devalue the Chinese yuan (CNY), this is a quick note on the subject. The bottom line is that speculation that Beijing is studying a possible devaluation of the CNY represents a veiled message sent in the context of rising trade tensions out of Washington DC and ahead of the US Treasury's semi-annual FX report, that it does NOT represent a change in Chinese FX policy and is very unlikely to happen unless the Chinese feel…

China: CNY Smoke Signals - Long Smoke, Short Fire