The US’ and China’s stimulus responses to the pandemic have resulted in a widening of interest rate differentials between the countries that lures foreign capital to renminbi bonds. Photo: Reuters
The US’ and China’s stimulus responses to the pandemic have resulted in a widening of interest rate differentials between the countries that lures foreign capital to renminbi bonds. Photo: Reuters
Aidan Yao
Opinion

Opinion

Macroscope by Aidan Yao

China’s roaring economy has sparked a yuan rally, but it may not last

  • Demand for the yuan has spiked on the back of global appetite for China’s goods and renminbi bonds, thanks to its revitalised industrial sector and prudent monetary policy
  • But in the medium to long term, yuan strength against the dollar will also depend on US macro policies. The outcome of the US election is key

Aidan Yao
Aidan Yao

Updated: 10:16pm, 4 Nov, 2020

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The US’ and China’s stimulus responses to the pandemic have resulted in a widening of interest rate differentials between the countries that lures foreign capital to renminbi bonds. Photo: Reuters
The US’ and China’s stimulus responses to the pandemic have resulted in a widening of interest rate differentials between the countries that lures foreign capital to renminbi bonds. Photo: Reuters
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