The pace of China’s economy can not be called slow, in addition, the country has a good foreign-exchange reserves, said Zhang Chuansha. According to him, the Renminbi – the issue of preserving the “face” of the Chinese economy.
BEIJING, 20 Jan. Ivan Bulatov, Zhanna Manukyan. The sharp depreciation of Chinese currency will not happen, the head of CITIC Capital Zhang Chuansha. He said this, speaking at the world economic forum in Davos. Broadcast speech was conducted on the website of the forum.
“I don’t believe that the yuan could depreciate sharply. Overall, the pace of the economy does not slow, in addition, we have very good reserves in foreign currency. In addition, from the point of view of the Chinese government, it’s a matter of saving faces — the yuan in the SDR basket. Personally, I think for the yuan, there is no reasons for sharp devaluation,” — said the head of CITIC Capital.
A similar viewpoint was expressed by an American economist, Professor of Economics at new York University Nouriel Roubini.
“You know, there are fears that China will depreciate their currency. I don’t think it will happen,” — said the expert.
He also recalled that recently the Chinese currency was included in SDR basket. Roubini said that China will not allow the devaluation of its national currency, as it will lead to inflation and a possible crisis in the emerging markets of Asia. According to him, the Chinese authorities have not allowed the Renminbi to depreciate during the global financial crisis (2008 — ed.) and during the Asian financial crisis of 1997-1998.
Nouriel Roubini also said that the main concern of people is the non-transparent policy of the Renminbi.
The IMF Executive Board on November 30 decided to include the yuan in the SDR basket, including dollar, Euro, pound sterling and yen. The Fund’s decision coincided with the expectations of international analysts and experts who have long talked about the need for recognition of the role of China in global trade.
The people’s Bank of China weakened the yuan to the dollar in the first week of 2016, more than 1.5%. This was the largest change rate of the yuan from August 2015, when the devaluation of the yuan the strongest effect on global stock markets, and led to the fall of the major stock indexes of China by 5-6%. After heightened tension in the stock and financial markets the Chinese Central Bank has focused on stabilization of the yuan.
The Chinese currency is long enough to stay stable at around 8.3 yuan per dollar until the summer of 2005 was beginning to strengthen. Since the autumn of 2008 the yuan around the year kept at 6.8 — and in September 2009 started to increase again. The peak was in January 2014, when the dollar was about 6.0 yuan.
CITIC GROUP is one of the largest state-owned investment corporations of China. Currently, the composition of CITIC Group consists of 44 subsidiaries.