Chinese Yuan nears equilibrium level

The stabilization of China’s FX reserve suggests less intervention from the central bank, says Yi Gang.

OCBC Treasury Research noted:

Chinese Yuan is close to its equilibrium level according to Yi Gang, deputy Governor of China’s central bank. He said the stabilization of China’s FX reserve for the past year also suggested balanced demand and supply and less intervention from the central bank. Mr Yi also expects Chinese firms to expand overseas aggressively for the next 20 years.

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