Asian Currency

Risk of a renminbi devaluation is real

Unlock the Editor’s Digest for freeRoula Khalaf, Editor of the FT, selects her favourite stories in this weekly newsletter.The writer is research associate at Oxford university’s China Centre and at Soas. He is also a former chief economist at UBSRecent speculation about a significant devaluation of the still closely managed renminbi looks rather fanciful given that China runs a large manufacturing trade surplus and a balance of payments surplus of about 2 per cent of GDP. And that is probably understated.Yet Japan’s surplus is larger, and this has not stopped...
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