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| Credit Suisse: Yuan to Remain Stable Despite US and European Bank Liquidity Concerns |
Economists at Credit Suisse have predicted that the Chinese Yuan will remain stable and continue to be a safe haven amidst ongoing concerns regarding US and European bank liquidity. They have reiterated their USD/CNH forecast range of 6.70-7.10, citing the recent cut in the Reserve Requirement Ratio (RRR) as a growth-friendly policy that should help stabilize the Yuan relative to other emerging market and cyclical currencies.
According to Credit Suisse, the directionality in US yields will still drive USD/CNH, but the RRR cut will add to the previous narrative of growth-friendly Chinese policies. This should help stabilize the Yuan, which has remained relatively stable despite ongoing concerns over global economic stability.
Overall, Credit Suisse remains optimistic about the Chinese economy and expects the Yuan to continue to perform well in the coming months. The RRR cut, combined with other growth-friendly policies, is expected to provide support for the Chinese economy and help maintain the relative stability of the Yuan.
