The currency market envisages that a renewed yuan weakness against the US dollar will be sustained rather than fleeting. Photo: Reuters
Neal Kimberley
Opinion

Opinion

Macroscope by Neal Kimberley

Currency traders poised to pounce as US trade war keeps the Chinese yuan weaker

  • Beijing is expected to tolerate a weaker yuan to help exporters offset the effect of higher US tariffs, although the yuan-to-dollar slide should be modest
  • Other currencies expected to be caught in the slipstream of trade war tensions include the yen and won

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The currency market envisages that a renewed yuan weakness against the US dollar will be sustained rather than fleeting. Photo: Reuters
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Yi Gang, governor of the People’s Bank of China, arrives for the European Union-China high-level economic dialogue at the Diaoyutai State Guesthouse in Beijing, China, on June 25, 2018. With its centrally planned economy, China could ensure closer integration between monetary policy and government objectives. Photo: Reuters
David Brown
Opinion

Opinion

Macroscope by David Brown

Should central banks be revamping their monetary policy frameworks and liaising more with governments?

  • With the trade war threatening already slowing global growth, it could be time for central banks to synchronise their efforts more closely with government fiscal goals
  • While crossing the line separating government and central banks might be harder in advanced economies, China may be better placed to do so

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Yi Gang, governor of the People’s Bank of China, arrives for the European Union-China high-level economic dialogue at the Diaoyutai State Guesthouse in Beijing, China, on June 25, 2018. With its centrally planned economy, China could ensure closer integration between monetary policy and government objectives. Photo: Reuters
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