Loading…
Goldman Sachs expects the yuan to become more volatile as China promotes wider international use of the currency. The bank expects offshore and onshore yuan rates to converge once exchange controls ease.
Goldman also argues that yuan funding could reduce China's exposure to dollar-based sanctions.
Higher yuan volatility adds exchange-rate risk to Chinese import contracts for US farm goods. The note is a longer-term currency outlook with limited near-term effect on feed prices.
caixinglobal.comBloombergDec 17, 2018After 991 past macro events, Chinese Yuan (CNY per USD) moved a median -0.0% over 5 sessions (49% higher; middle half -0.3% to +0.3%), and -0.1% over 20.
Moves of each commodity's benchmark from the last close before the event. Historical reads pool past events of the same kind; they describe what happened, not what will. Not investment advice.
