Yuan Expected to Fall 2.8% Before End of Year

The yuan, also called the renminbi, is expected to slide another 2.8% against the U.S. dollar by the end of 2015, according to the survey’s median estimate.

That might not sound like a major decline, but it is a big move for the tightly-controlled yuan.

The currency has already fallen 2.6% against the dollar since January, the vast majority of which came during a two-day drop in early August that stunned investors and contributed to a global stocks selloff.

In addition to the surprise depreciation, the central bank changed the way the yuan’s 2% daily trading band is set — a calculation that now uses the previous day’s closing price instead of the bank’s own opaque process.

Via China’s currency could double losses this year – economists – Sep. 14, 2015

Alfonso Esparza

Alfonso Esparza

Senior Currency Analyst at Market Pulse
Alfonso Esparza specializes in macro forex strategies for North American and major currency pairs. Upon joining OANDA in 2007, Alfonso Esparza established the MarketPulseFX blog and he has since written extensively about central banks and global economic and political trends. Alfonso has also worked as a professional currency trader focused on North America and emerging markets. He holds a finance degree from the Monterrey Institute of Technology and Higher Education (ITESM) and an MBA with a specialization on financial engineering and marketing from the University of Toronto.
Alfonso Esparza