The pace of Yuan's gains is suggested to slow down in the coming months 📉
In his latest CGTN report, Jimmy Zhu, our Chief Strategist, shares key insights which include:
✅ Yuan rallied around 3 percent in Q1 as China's economy has been showing persistent recovery after the pandemic.
✅ The nation’s financial institutions will need to hold 7% of their foreign exchange in reserve, from June 15, to reduce the supply of the dollar, which will impact the yuan negatively.
✅ The 10-year bond yield spread between U.S-China narrowed when the USD/CNY exchange rate stood around 6.95, limiting the Yuan's upside.
✅ China's new export orders index for the month of May fell below 50, indicating that exporters' revenues may be badly hurt.
Read the full report!