A woman shops at a supermarket in Shijiazhuang, Hebei province, on January 31. China must beware the risks of imported inflation from food, energy and raw materials. Photo: Xinhua A woman shops at a supermarket in Shijiazhuang, Hebei province, on January 31. China must beware the risks of imported inflation from food, energy and raw materials. Photo: Xinhua
A woman shops at a supermarket in Shijiazhuang, Hebei province, on January 31. China must beware the risks of imported inflation from food, energy and raw materials. Photo: Xinhua
Neal Kimberley
Opinion

Opinion

Macroscope by Neal Kimberley

Why a stronger yuan is still in China’s best interests

  • China, whose economy relies on US dollar-denominated food, energy and raw materials to sustain its recovery from Covid-19, has reason to be wary of dollar strength
  • A stronger renminbi will give the PBOC a freer hand to focus on monetary policy that supports the economy without worrying about imported inflation

A woman shops at a supermarket in Shijiazhuang, Hebei province, on January 31. China must beware the risks of imported inflation from food, energy and raw materials. Photo: Xinhua A woman shops at a supermarket in Shijiazhuang, Hebei province, on January 31. China must beware the risks of imported inflation from food, energy and raw materials. Photo: Xinhua
A woman shops at a supermarket in Shijiazhuang, Hebei province, on January 31. China must beware the risks of imported inflation from food, energy and raw materials. Photo: Xinhua
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Neal Kimberley

Neal Kimberley

UK-based Neal Kimberley has been active in the financial markets since 1985. Having worked in sales and trading in the dealing rooms of major banks in London for many years, he moved to ThomsonReuters in 2009 to provide market analysis. He has been contributing to the Post since 2015 and writes about macroeconomics from a market perspective, with a particular emphasis on currencies and interest rates.