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

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