Gaming the Yuan: Making Money on a State-Controlled Currency
- Analysts say get creative to trade the managed currency
- Short yuan volatility, says China Merchants Bank’s Wan
This article is for subscribers only.
One of the world’s least volatile currencies, the yuan was already a challenging trade before China’s central bank started stepping up control.
Swings in the yuan have only become more muted since May 26, when the People’s Bank of China flagged including an extra factor in the formula used to calculate the daily reference rate, one of its chief tools for managing the currency. With a twice-a-decade leadership reshuffle in the Communist Party looming -- and residual concern over how the exchange rate is viewed by the U.S. -- the onus is on officials to keep a grip on the yuan in 2017.