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Weak RMB sparking outflows: Déjà vu?

Overview

This publication is part of our China In Depth service. Click here for more detail.

After a calm summer, the negative feedback loop between the RMB and capital outflows is increasing in amplitude. Following last August’s change in China’s foreign exchange regime, which was accompanied by an unexpected mini-devaluation, policymakers have enhanced their communication and designed various measures to curb speculation and outflows.

But the pressure of outflows remains...

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