PBOC Hasn't Deliberately Let Yuan Depreciate, Says Covenant Capital's CIO

The video discusses the People's Bank of China's (PBOC) approach to managing the yuan and its foreign reserves amidst trade tensions with the US. It highlights the stability of China's foreign reserves and the PBOC's focus on global trading partners rather than just the US dollar. The current yuan reference rate is examined, and the impact of yen depreciation on China's export competitiveness is analyzed.

What is the PBOC's stance on the yuan's depreciation in response to US trade tensions?

• They are actively depreciating the yuan.

• They are maintaining a stable foreign reserve.

• They are letting the yuan depreciate deliberately.

• They are increasing foreign reserves to defend the yuan.

How does the PBOC view the yuan's value?

• As a fixed rate against the dollar.

• Only in comparison to the US dollar.

• In the context of its global trading partners.

• As a volatile currency.

What is the current yuan reference rate mentioned in the video?

• 6.75 against the dollar.

• 6.50 against the dollar.

• 6.83 against the dollar.

• 7.00 against the dollar.

What effect has the yen's depreciation had on China's exports?

• It has led to a trade surplus.

• It has made them less competitive.

• It has had no effect.

• It has made them more competitive.

How much of the US tariffs' impact has the yen's depreciation neutralized?

• About half of the impact.

• About a quarter of the impact.

• All of the impact.

• None of the impact.