UBS sees reduced depreciation pressure on yuan
The article reports the recent reduction in the depreciating pressure on Chinese Yuan compared to US Dollar. Improved market sentiment and stable Economic Indicators in China coupled with a comparative weak Dollar has reduced the rate of depreciation of Yuan.
Topics include Depreciation, Managed Float Exchange Rate system, Balance of Payments and Effects of Depreciation on the International Trade and economic Growth of the country. Also discuss the causes and the expected effects of Currency Depreciation in a recessionary economy using the Exchange Rate diagrams.
Evaluation will cover effect of reduced depreciating pressures on Exports; improve Terms of Trade, Investment, Balance of Payments and Consumers, Domestic producers and Government in short term and long term.