“The yuan headed for the biggest monthly drop since last year's shock devaluation, spurring concern that China's policy makers are becoming more tolerant of declines as exports slump and the dollar advances.”
Business Time 28/10/2016
The offshore RMB value has dropped to a record low since the devaluation on August 2016. Even though the healthy balance of payments, strong exports capability and stabilized cross-boarder capital flows in China, has suggested that there are no grounds for persistent depreciation of RMB, the trend of devaluation still continues.
The devaluation of RMB gives rise to different concerns, including the sign of slowdown in Chinese economy, the diving of global stock markets and fears of Asian Currency War.
The LSE SU China Development Society is going to launch our new Bridging Minds Symposium "Devaluation of RMB: Impacts and Challenges on Global Economy" on 1st December, to discuss the past, present, and future of RMB, with a focus on Xi’s new policy on exchange rate. We are also going to explore its impact on global economy.