Yuan Fix Weakened to 2010 Levels

The video discusses the widening gap between offshore and onshore yuan rates, influenced by the strengthening US dollar and expectations of a Federal Reserve rate hike. It highlights China's challenge in balancing a market-driven rate with controlling capital outflows, as FX reserves fall below estimates. Analysts predict a gradual yuan depreciation, with no expected rate cuts from the PBOC, aiming to support the currency while managing manufacturing sector impacts.

What are the implications of the capital outflows for Chinese policymakers?

What expectations do analysts have regarding the future path of the yuan according to ABN Amro?