Malaysia Hotline: +603- 2141 8908
China's monetary policy and the renminbi's value
face major uncertainties in the capital market after the US Federal Reserve's
first interest rate rise in 10 years, according to economists.
This is especially the case as few indicators point
to a reversal in the country's economic slowdown, they said.
The Fed decision, announced by chairwoman Janet
Yellen on Wednesday, saw it raise rates to 25-50 basis points from 0-25.
Emerging economies, especially China, will be most
affected by the rate rise, according to research by Goldman Sachs.
The renminbi may fall further against the US
dollar, devaluing renminbi-denominated assets and triggering increased capital
outflows, economists said.
The yuan fell against the dollar for the ninth
consecutive day on Thursday, with the daily reference exchange rate being
adjusted to 6.4757 per dollar from 6.4626 a day earlier.
The renminbi has dropped by 1.4 percent against the
dollar in two weeks.
According to the State Administration of Foreign
Exchange, China's top foreign exchange regulator, Chinese banks bought foreign
exchange worth $116.7 billion last month and sold $171.5 billion, expanding the
deficit to $54.8 billion from $20.1 billion in October, indicating accelerated
capital outflows.
Contact us
If you have further queries, please contact Tannet
24 hours Malaysia hotline：603-21418908;
24 hours Hong Kong hotline：852-27837818;
24 hours Hong Kong hotline：86-755- 36990589;
Email: mytannet@gmail.com
TANNET GROUP : http://www.tannet-group.net, http://en.tannet.com.my