Why things are about to get much worse for China

Wednesday, 4 July 2018

Excellent work from Damien Boey at Credit Suisse:

PBoC intervention

Overnight, we saw the PBoC intervene to stabilize the USD/RMB around 6.7. Alongside the intervention, two PBoC officials spoke about the Bank’s commitment to exchange rate stability, with one also suggesting that recent devaluation was due to speculative outflows rather than a deliberate policy attempt to combat new US tariffs.

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About the author

David Llewellyn-Smith is Chief Strategist at the MB Fund and MB Super. David is the founding publisher and editor of MacroBusiness and was the founding publisher and global economy editor of The Diplomat, the Asia Pacific’s leading geo-politics and economics portal. He is also a former gold trader and economic commentator at The Sydney Morning Herald, The Age, the ABC and Business Spectator. He is the co-author of The Great Crash of 2008 with Ross Garnaut and was the editor of the second Garnaut Climate Change Review.