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Why sharp yuan appreciation or depreciation is unlikely in 2019
After the 'two sessions' in March, the USD/CNY and USD/CNH have traded in narrow ranges as yuan stability is one of the big focuses of the Chinese government. And now, it is beginning to look clearer that yuan stability means the central bank manages the yuan movements in a narrow range. Onshore yuan depreciated 0.2% against the dollar in March, and so far has dropped 0.3% in April (until 29/4/2019). These narrow range bounds are very different from the movements observed in the first two months of 2019 when the yuan appreciated 2.45% against the dollar. It's important to note that not only has the range narrowed, ... (full story)