Chinese RMB yuan unlikely to see big devaluation against US dollar: UBS economist

Описание: It comes at a difficult time for China's yuan.

The U.S. Fed's biggest hike in two decades, COVID-19 related disruptions and an economic slowdown in April, the yuan rate has tumbled more than six percent against the dollar in the last four weeks.

But Philip Wyatt, a macro-strategist with the UBS remains optimistic for its long-term prospect.

Philip said two important drivers behind the value of the currency are relative inflation rates and external balances, or the trade balances.

He explained that CHina's current level of inflation present no serious problems, unlike many other emerging economies. Secondly, China posted a trade surplus of more than 51 billion U.S. dollars in April, beating a forecast for that of the Reuters poll.

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