Facebook Twitter 新浪微博 google plus Instagram YouTube Friday, Dec. 18, 2015

US rate rise takes toll on Chinese currency

(China Daily)    07:58, December 18, 2015

US rate rise takes toll on Chinese currency

Chinese currency may decline further, while monetary policy is also likely to be affected

China's monetary policy and the renminbi's value face major uncertainties in the capital market after the US Federal Reserve's first interest rate rise in 10 years, according to economists.

This is especially the case as few indicators point to a reversal in the country's economic slowdown, they said.

The Fed decision, announced by chairwoman Janet Yellen on Wednesday, saw it raise rates to 25-50 basis points from 0-25.

Emerging economies, especially China, will be most affected by the rate rise, according to research by Goldman Sachs.

The renminbi may fall further against the US dollar, devaluing renminbi-denominated assets and triggering increased capital outflows, economists said.

The yuan fell against the dollar for the ninth consecutive day on Thursday, with the daily reference exchange rate being adjusted to 6.4757 per dollar from 6.4626 a day earlier.

The renminbi has dropped by 1.4 percent against the dollar in two weeks.

According to the State Administration of Foreign Exchange, China's top foreign exchange regulator, Chinese banks bought foreign exchange worth $116.7 billion last month and sold $171.5 billion, expanding the deficit to $54.8 billion from $20.1 billion in October, indicating accelerated capital outflows.


(For the latest China news, Please follow People's Daily on Twitter and Facebook)(Editor:Liang Jun,Huang Jin)

Add your comment

We Recommend

Most Viewed


Key Words