China | Depreciation takes hold after new RMB index set to track EUR and JPY more closely
Published on Monday, December 14, 2015 | Updated on Monday, December 14, 2015
China | Depreciation takes hold after new RMB index set to track EUR and JPY more closely
Summary
On December 11, the PBOC indicated that the RMB will be loosely pegged to a basket of 13 currencies. Weights for the different currencies were also provided as part of the announcement. We identify some upside risks to our end-15 forecast of 6.45 CNY/USD but maintain our end-16 forecast at 6.8 CNY/USD.
Topics
- Topic Tags
- Macroeconomic Analysis
Authors
Carlos Casanova
Le Xia
BBVA Research - Chief Economist