Renminbi set for more volatility, analysts say
Depreciation in 2015 is 'clearly possible', according to analysts
The renminbi is set for more two-way volatility, such as the price swings seen in the first half of 2014, and carry yields may be less positive than they appear, say analysts at Bank of America Merrill Lynch (BAML).
In a research note, BAML suggests that while the People's Bank of China (PBoC) is "unlikely to use depreciation [against the US dollar] as a policy tool", two-way volatility in the currency is "clearly possible".
"Despite consecutively lower USD/CNY fixings around the November trade
More on Foreign Exchange
Average reported daily UK FX turnover hits record high
Daily turnover of $2,881bn in October 2019, up 2% from previous high of $2,821bn in April
PBoC injects 1.2 trillion yuan as markets plunge
Chinese central bank eases to support economy as coronavirus spreads; Q1 GDP growth could drop to 4%
Spot volumes on platforms resumed downward trend in 2019
But an uptick was seen in FX swaps and forwards submitted for settlement
PBoC extends market closure as coronavirus spreads rapidly
Chinese central bank extends interbank markets closure and vows to maintain ample liquidity
