Here’s One More Reason To Believe China’s Currency Will Continue To Plunge
Despite the Politburo's best efforts (which now include the imposition of what amount to new capital controls), capital continues to flow out of China.
Put simply: all signs point to further RMB depreciation and no one wants to stick around to see how low the yuan will ultimately go before the PBoC finally throws in the towel and moves to a free float. Indeed, it's not even clear that letting the currency drop to a market clearing rate would relieve the pressure, as these things tend to becom
At some point they will just give up, and have the market take its course for a while, then re-exert themselves down the line. Let’s face it they are not boy scouts.