World Cup Fever Is Here! Choose your broker like you choose your team
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Abstract:UBS believed China's central bank (PBoC) wanted to balance multiple objectives with the yuan (CNY) exchange rate and avoid the formation of one-way expectations.
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The People's Bank of China (PBoC) had given some hints that it intended to reduce the reserve requirements placed on foreign exchange (FX) deposits in order to moderate the rate of currency depreciation. In a note to its customers, the bank said that in addition to lowering its reserve requirements even more, re-introducing the counter-cyclical factor in its daily fixing, and increasing curbs on capital outflows, it had other tools at its disposal to rein in the currency's decline.

UBS forecasted that the Chinese yuan will continue to lose value against the United States dollar (USD) over the next few months, potentially falling below 7 at some point but settling at roughly 6.9 by the end of the year.
The bank forecasted that China's growth momentum will get back up by that time, as well as an improvement in financial market confidence. According to projections made by UBS, China's economy will continue to improve in 2023, while the US dollar will see some weakness, which will result in a USDCNY exchange rate of 6.7 by the end of 2023.
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The views in this article only represent the author's personal views, and do not constitute investment advice on this platform. This platform does not guarantee the accuracy, completeness and timeliness of the information in the article, and will not be liable for any loss caused by the use of or reliance on the information in the article.

Join WikiFX and investors worldwide in celebrating the excitement of the 2026 FIFA World Cup!

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