Yuan will remain under pressure for longer – Commerzbank

Economists at Commerzbank analyze how Chinese policies could impact the Yuan.

Most policy measures will focus on the supply side

Markets and businesses should get used to the ‘new normal’ in which the Chinese government will avoid rolling out big stimulus. Instead, targeted stimulus will be implemented and most policy measures will focus on the supply side. 

We will likely only see a rather moderate boost from policy stimulus in the coming months. As such, the Yuan will remain under pressure for longer.