The Volatile Stock Market Could Accelerate the Depreciation of RMB
ANBOUND
Recently, the pressure on the depreciation of RMB against USD is getting obvious.
According to Anbound's scholars, it is worth noting that RMB might depreciate further in light of a series of stimulus measures introduced by the government to rescue the stock market and to create a more supportive monetary environment.
Both the inclusion in the special drawing rights ("SDR") basket and the promotion of One Belt One Road require RMB to be strong and stable.
The central government is facing the difficult choice between rescuing its stock market and stabilizing the value of RMB.