The Chinese policymakers did not see it coming. Market turbulence has ensued since the People's Bank of China announced its exchange rate reform on 11 August 2015. To date, the renminbi has fallen by nearly 5% against the US dollar. China's foreign exchange reserves, once thought to be a formidable war chest, shrank by US$420 billion in just six months to US$3.2 trillion by end-January. Accelerating capital outflow sparked concerns about a looming financial crisis. China now faces the classic trilemma – it cannot control its exchange rate, have an independent monetary policy and allow free capital movements all at the same time. The path to reform was never going to be easy. What can we expect from China's policymakers next, and will the renminbi devalue sharply again?
This report includes 1 file(s)
Falling renminbi and reserves: what next for China? PDF - 718.35 KB 9 Pages, 0 Tables, 21 Figures
This Macroeconomics and Global Trends Insight report presents our research on this key topic, and draws out the implications for economies and commodity markets.
This report delivers a clear understanding of our unique global economic outlook and identify risks and uncertainties to watch out for.
Wood Mackenzie's global trends and macroeconomic analysis underpins all our commodity demand analysis, ensuring we continually deliver an integrated and consistent view.
Our comprehensive understanding of commodity markets gives us a unique insight into the pace of global development and the risks associated with it.
Wood Mackenzie's clients include every major player in the global energy, metals and mining industries. We are recognised as a leading authority by international and national energy, metals and mining companies, leading financial institutions, governments and government agencies. We work with a range of diverse teams within our clients, from strategy and policy makers, business developers and market analysts, through to corporate finance, risk teams and investors.
Having Wood Mac analysis is table-stakes. Others are nice to have.
Analyst Metal Mining Producer
Wood Mac has the highest quality data and is demanded by our staff.
Portfolio Manager Integrated Oil Company
Others can provide data but we value the quality of the Wood Mac analysis above other sources.
Wood Mackenzie, a Verisk Analytics business, has been a trusted source of commercial intelligence for the world's natural resources sector for more than 40 years, empowering clients to make better strategic decisions with objective analysis and advice.
We work across every sector of oil, gas, power,renewables,chemicals, metals and mining, covering more than 150 countries. Our proprietary data and models are at the core of everything we do, ensuring our independent asset and company valuations are thoroughly robust and that we offer an accurate forward-looking view of economic indicators such as market supply, demand and price trends.
Our 500+ analysts are based in the regions they cover, cultivating an unrivalled depth of understanding to help clients accurately identify new opportunities, define their strategy and improve business performance.
At every stage, our teams readily collaborate and share their insight to provide an integrated perspective across entire industries. It is this unique and rigorous analytical approach that ensures we are recognised as the industry standard by the world’s most innovative organisations.
Insight | Feb 2016
Falling renminbi and reserves: what next for China?
Have questions?Just let us know how to contact you and we will respond to you as soon as possible.