China: fighting an uphill battle to stabilise RMB

Paris, 09/01/2017



Aidan Yao, 

Senior Economist (China) - AXA IM R&IS


Shirley Shen, 

Economist (Non-China Emerging Asia) - AXA IM R&IS

PBoC revising the CFETS index and taking steps to alleviate FX pressure

Recent RMB depreciation and capital outflows have prompted official actions to ensure systemic stability. Aidan Yao and Shirley Shen discuss the concerted measures introduced in recent months to ease capital outflow pressure and stabilise RMB expectations. At the same time, continued efforts have been devoted to improve FX market infrastructure, with the revision to the CFETS calculation being the latest example.