16 Feb 2015
China might see a short-term fix in the exchange rate – TradeTheNews
FXStreet (Barcelona) - The TradeTheNews Team shares the statement of China’s FX regulator that the heavy volatility in capital flow might lead the authorities to implement a short-term fix in the exchange rate.
Key Quotes
“China's FX regulator SAFE warned continued volatility in capital movements could prompt the authorities to institute a short-term fix in the exchange rate, pointing to the most recent rise in outflows in 2014.”
“Jan FDI spiked by 29%, well above the 10% increase in Dec, while MOFCOM spokesperson forecasted 2015 FDI growth to remain stable.”
“MOFCOM's Shen added trade growth outlook is not optimistic, even though he still saw further exports growth.”
“Separately, Chinese press reports cited NDRC official estimating China needs GDP of at least 6.5% for 2016-2020 period to meet medium term growth objectives, and a govt policy advisor anticipated further PBoC easing and tolerance toward CNY weakness to achieve an around 7% growth this year.”
Key Quotes
“China's FX regulator SAFE warned continued volatility in capital movements could prompt the authorities to institute a short-term fix in the exchange rate, pointing to the most recent rise in outflows in 2014.”
“Jan FDI spiked by 29%, well above the 10% increase in Dec, while MOFCOM spokesperson forecasted 2015 FDI growth to remain stable.”
“MOFCOM's Shen added trade growth outlook is not optimistic, even though he still saw further exports growth.”
“Separately, Chinese press reports cited NDRC official estimating China needs GDP of at least 6.5% for 2016-2020 period to meet medium term growth objectives, and a govt policy advisor anticipated further PBoC easing and tolerance toward CNY weakness to achieve an around 7% growth this year.”