Ex-PBOC adviser Yu: Free-Floating Yuan is nothing to fear

Dhwani Mehta FXStreet

Yu Yongding, a scholar at the China Academy of Social Sciences (CASS) and former China’s central bank adviser, made the comments amid a growing debate among Chinese economists about whether the yuan should be allowed to trade more freely in the official Shanghai Securities News today, as cited by Reuters.

Key Quotes:

“How the future exchange rate will go depends on central bank policy and I have no way of reading their minds, but I want to say that we should overcome the irrational fear of a free-floating yuan.”

“(China) should be the country least afraid of a fluctuating exchange rate.”

He suggested the central bank set a “bottom line” of 25 percent for the yuan to depreciate.

Author

Dhwani Mehta

FXStreet

Residing in Mumbai (India), Dhwani is a Senior Analyst and Manager of the Asian session at FXStreet. She has over 10 years of experience in analyzing and covering the global financial markets, with specialization in Forex and commodities markets.

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