Will China be the next forex peg to break ?

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From marketwatch.com

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The surprise move by Switzerland to scrap its currency ceiling against the euro EURCHF, -0.16% last week is a reminder there can be unexpected collateral damage from central banks waging currency wars. As markets digest last week’s turmoil, expect focus to turn to other fault lines on the global currency map. Here China stands out, as like the Swiss, it runs an implicit currency peg that is becoming increasingly painful to maintain. Due to its longstanding crawling peg to the U.S. dollar, the yuan USDCNY, -0.09% USDCNH, +0.00% has increasingly found itself pulled higher against just about every major currency. The world’s largest … (full story)

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