Economists predict yuan will experience further declines
By Li Taoand Lin Wenjie in Hong Kong | China Daily | Updated: 2016-07-20 07:48
In the offshore markets for the yuan, the expectation is spreading that the currency will depreciate until there is a turning point in the global business environment. But, how quickly the will the yuan fall against the dollar? Or, how much will it be allowed to fall, based on China's overall economic considerations?
Economists are offering different scenarios. But many tend to agree, as a recent Bloomberg report reflects, that the central government won't allow the rate to fall below 7 to 1 in the second half of the year.
The yuan gained 96 basis points to 6.6893 per US dollar as of the 4:30 pm official closing time in Shanghai on Tuesday, recovering from 6.7021 on Monday's close, the weakest level since September 2010.
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