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How do you see the yuan appreciating from its current point? China has had a very, very large trade/current account surplus for a long time and it doesn't seem
by brobinson 10y ago
How do you see the yuan appreciating from its current point? China has had a very, very large trade/current account surplus for a long time and it doesn't seem like that will change in the near future.
- dilemma 10y agoThe yuan will appreciate as the domestic Chinese market grows and the economy becomes less export-driven.
- brobinson 10y agoBut China is currently propping up the value of the yuan (after a long period of artificially keeping it low to boost exports) and are struggling to deal with their net outflow. I just don't see how their domestic consumption is going to make up for the enormous capital account deficit any time soon, and they're now starting to put restrictions on currency trading for regular citizens...
- brobinson 10y agoRelevant: https://www.bloomberg.com/news/articles/2017-01-26/world-s-biggest-real-estate-buyers-are-suddenly-short-on-cash https://www.bloomberg.com/news/articles/2017-01-26/world-s-b...