Yuan May Weaken to 6.8 Per Dollar by Year End, UBS's Wang Says

The transcript discusses the economic projections for the yuan, highlighting a potential depreciation and the PBOC's comfort level. It examines the impact of the trade war on market sentiments and the RMB exchange rate, noting China's economic challenges, including deleveraging and a potential debt crisis. The discussion also covers policy tools available to China to mitigate economic pressures, such as easing credit and infrastructure investment.

What is the projected depreciation of the yuan according to Bloomberg economics?

• 2%

• 3%

• 5%

• 6.5%

Why does the market believe China might be more affected by a trade war with the U.S.?

• The U.S. has a stronger currency.

• China is more dependent on the U.S. market for exports.

• China's economy is less dependent on exports.

• China has a larger economy.

What strategy might the PBOC use to stabilize the yuan?

• Increase interest rates

• Implement stricter trade policies

• Introduce a counter-cyclical factor

• Decrease exports

What has been a significant challenge for Beijing in recent years?

• Strengthening the yuan

• Deleveraging

• Reducing inflation

• Increasing exports

What measure has China taken to manage its debt-to-GDP ratio?

• Reduced exports

• Increased borrowing

• Implemented supply-side measures

• Increased inflation