As the yuan plumbs new lows against the dollar, China's currencyis still strengthening against its peers.

That's posing a dilemma for the nation's policy makers as theyseek to arrest a plunge in exports and shore up an economy growingat its slowest pace since 1990. China's exchange rate climbed 0.6%against a trade-weighted basket last week, its biggest advance inthree months, even as it slumped 0.8% versus the greenback to asix-year low. Against the euro and the South Korean won, the yuangained at least 0.7%.

With the latest data showing Chinese outbound shipments sank 10%last month from a year earlier, the case for a weaker currency isgrowing. The quandary for policy makers is how to allow a quickerpace of depreciation against the dollar without sparking the sizeof capital outflows that occurred in January this year and August2015.

Continue Reading for Free

Register and gain access to:

  • Thought leadership on regulatory changes, economic trends, corporate success stories, and tactical solutions for treasurers, CFOs, risk managers, controllers, and other finance professionals
  • Informative weekly newsletter featuring news, analysis, real-world cas studies, and other critical content
  • Educational webcasts, white papers, and ebooks from industry thought leaders
  • Critical coverage of the employee benefits and financial advisory markets on our other ALM sites, PropertyCasualty360 and ThinkAdvisor
NOT FOR REPRINT

© 2024 ALM Global, LLC, All Rights Reserved. Request academic re-use from www.copyright.com. All other uses, submit a request to [email protected]. For more information visit Asset & Logo Licensing.