Renminbi wars - the People’s Bank of China awakens
In August 2015, the Renminbi stumbled. Over 3 days the offshore rate for the Chinese currency (CNH) weakened by approximately 5% against the US dollar to reach 6.52 on 12 August 2015. Many pundits were puzzled: what did this mean for the Renminbi? At that time, we issued “Managing currency risk”, providing initial guidance for companies wishing to take a more active role in managing currency exposures.
In this sequel, we explore the implications for corporates of the ongoing uncertainty in the FX market.