More volatility ahead for the renminbi

The recent abrupt fall in the renminbi is best seen as a salvo in a battle between policymakers who believe that China’s currency is close to its fair value and market participants who don’t. Fundamentals support those who expect further appreciation over the medium term. But given the People’s Bank’s stance, there will be volatility along the way.  

Subscriber content

Read this in full, free

Start a free trial and use one of your 10 free starter credits to unlock this piece.


Free. 10 articles. No card required.
By completing this form you are agreeing to our Terms and Conditions for the provision of a free trial of Capital Economics' services. We take your privacy seriously and will not share your details with others without your consent. By providing your details, including your email address, you are consenting to Capital Economics sending you macroeconomic commentary and analysis. You can unsubscribe at any time. See our Privacy Policy for more information.

Already a client or trialist? Log in to read this.