CNY: China’s reserve adequacy saw a sharp deterioration – BNPP

Discussion in 'Fundamental Analysis' started by FXStreet_Team, Jan 21, 2016.

  1. FXStreet_Team

    FXStreet_Team Well-Known Member Trader

    Oct 7, 2015
    Likes Received:
    FXStreet (Delhi) – Research Team at BNP Paribas, notes that China’s reserve adequacy saw a sharp deterioration in 2015 and the trajectory remains downwards under the current rigid exchange rate framework.

    Key Quotes

    “The writing is on the walls. China's mighty stockpile looks less impressive when assessed against external liabilities and potential domestic capital flight. A similar story has played out in other emerging markets, which culminated in large, unplanned, currency devaluation. 2016 looks to be a year when the extent of Chinese exceptionalism will be severely tested.”
    For more information, read our latest forex news.

Share This Page

free forex signals