The pros and cons of a weaker renminbi

The recent weakening of the renminbi has revived a debate over the economic impact of currency depreciation. There will be both winners and losers domestically. But given that China’s government, banks, and firms are all net external creditors and the country runs a trade surplus, the gains from renminbi weakness will probably outweigh the costs.

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.