A sharp depreciation of the renminbi this week took the currency to the edge of the trading band that the PBOC has been holding steady since Donald Trump's election. The PBOC is likely to ramp-up its intervention to slow the pace of depreciation in the near term. But if the large tariffs that Trump has threatened do come into force, we think that the People's Bank will allow the renminbi to depreciate to 8/$.
We’ll be discussing the implications of a Trump presidency for Asia in a Drop-In on Tuesday, 14th January at 08:00 GMT/16:00 SGT. Click here to register for the 20-minute online briefing.
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