When will the yuan fall?

Wednesday, 16 February 2022

It’s part of my base that CNY will weaken in due course. This is going to transpire just as US growth comes off hard with Fed tightening and an external shock hits China. A falling CNY also drags down commodity prices. This will end the global tightening. Pantheon has more:

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China saw another huge current account surplus in Q4, but it is under increasing pressure.

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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.