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What You Need to Know About the Chinese Yuan

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China has several, even contradictory, motives for the direction of the yuan. But the need for stability will likely prevail. If the dollar were to appreciate broadly, it increases pressure on China to orchestrate a measured depreciation. That won't be easy, but we think it's feasible in the near-term. If China truly wanted a much weaker currency, it would likely have one if it moved to a free float.

Ned Davis Research | Economics | Global Focus | Weekly

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