by Micah J. Fleck
Well, this isn’t good news for China. Reports now saying that the Yuan is “on track for its biggest annual loss since 1994, which would make it the worst performing major Asian currency this year.” Yikes.
The report continued:
“The central bank was more inclined to release depreciation pressure on the yuan this time last year, when they loosened their grip on the spot rate and let the currency weaken to elevate the dollar purchase cost for those who want to swap yuan for dollars at the beginning of the next year,” said one trader at a Chinese bank.
“But this time, authorities want to stabilize the currency as they are afraid of triggering stronger expectations of depreciation,” he said.
China’s authorities have rolled out policies over the past two months to tighten its grip on capital outflows after a slide in the yuan.
Yes, please do tighten your grip and control and regulation on everything, China. That will most certainly help.