The offshore yuan depreciated past 6.8 against the dollar, closing on the lowest level in 23 months, as a shaky economy is pressuring China’s central bank to take more easing steps at a time the US Federal Reserve signaled a commitment to keep raising interest rates to get ahead of inflation. The People’s Bank of China is expected to cut the country’s benchmark lending rates for corporate and mortgage loans on Monday after unexpectedly slashing two key rates earlier this week, as it tries to revive demand and counter signs of a slowing economy. Goldman Sachs and Nomura downgraded their forecasts for China’s GDP on Thursday, citing weaker demand, Covid-related uncertainties, and power shortages. However, analysts warned that the PBOC has little room to maneuver amid persistent inflationary pressures, rising global interest rates, and the risk of increased capital outflows.
Historically, the Chinese Yuan reached an all time high of 8.73 in January of 1994. Chinese Yuan - data, forecasts, historical chart - was last updated on August of 2022.
The Chinese Yuan is expected to trade at 6.79 by the end of this quarter, according to Trading Economics global macro models and analysts expectations. Looking forward, we estimate it to trade at 6.95 in 12 months time.