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Thursday, February 8, 2018

Something happened to CNY today!

Look at the long green bar which is circled in red.  Downward trajectory means CNY appreciation and upward trajectory means CNY depreciation.

The long green bar appears because China revives QDLP outbound investment scheme.  This QDLP scheme means foreign fund managers can raise money from China and invest overseas and there'll be an outflow of CNY.  Thus, CNY depreciates today due to an impending increase in CNY supply in the international market.

https://www.reuters.com/article/us-china-economy-outbound-investment/china-revives-qdlp-outbound-investment-scheme-in-boost-for-foreign-funds-sources-idUSKBN1FS0DV




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