China’s extensive stockpiling of essential commodities sparks speculation: Is a currency devaluation imminent?
Is China preparing an imminent FX devaluation?
The price action looks striking reminscent of 2014/2015 ahead of the managed devaluation of CNY.
Full story: https://t.co/sILjD21UGs pic.twitter.com/C0yIRBss3R
— Andreas Steno Larsen (@AndreasSteno) April 22, 2024
Arguments why China could decide to devalue CNY relatively soon:
1) Fixing and spot market remains out of sync and the Chinese efforts to balance the two have remained unsuccessful for long
2) It is probably a good idea to go ahead with the devaluation as long as Biden is in…
— Andreas Steno Larsen (@AndreasSteno) April 22, 2024