1. Hello Guest Click here to check FX Binary Point Financial Directory

New Renminbi index: A refinement in China’s economic policy transparency - TDS

Discussion in 'Fundamental Analysis' started by FXStreet_Team, Dec 14, 2015.

  1. FXStreet_Team

    FXStreet_Team Well-Known Member Trader

    Oct 7, 2015
    Likes Received:
    FXStreet (Delhi) - Sacha Tihanyi, Senior EM Strategist at TD Securities, suggests that the publication of a new renminbi index should be considered a refinement in China’s economic policy transparency and communication strategy, as it relates to renminbi.

    Key Quotes

    “Ultimately this represents a formalization of a policy focus that appears to have been in effect since late 2014 / early 2015 when CNY trading against the USD became less correlated with the CFETS index.”

    “We believe that a refocus on the index as a measure of renminbi valuation makes it easier for China to allow for CNY depreciation against the USD, a factor which may also negatively impact Asian currencies, particularly KRW and TWD.”
    For more information, read our latest forex news.

Share This Page