Pacific Investment Management Company with remarks on the Chinse currency

  • Amid fears of escalating trade tensions, the yuan's sharp depreciation against the dollar last month has spooked some investors who see similarities with China's currency devaluation in 2015, an episode that prompted capital outflows and roiled markets worldwide. Yet despite the similarities, differences in the macroeconomic backdrop suggest the global repercussions will be more limited this time.

The piece goes on to detail the similarities and differences (details are here, its a quick read)

PIMCO on what does it mean for the currency?

  • Going forward, we expect moderate depreciation of the yuan
  • Indeed, the central bank has shown willingness to tolerate higher volatility and to let the currency act as a shock absorber - as long as the moves are driven by fundamentals and there's no big spillover to financial stability

Again more detail at the link I referred to above