China Still Has a lot of Tools in the Toolkit, Says Jefferies’s Bechtel

The transcript discusses the People's Bank of China's (PBOC) approach to currency manipulation, focusing on the yuan's fixing and market reactions. It highlights the psychological impact of crossing the 7 yuan per dollar mark and the subsequent market response. The discussion also covers the gap between onshore and offshore yuan, potential future movements, and China's economic strategies in response to being labeled a currency manipulator. The transcript concludes with a look at China's available economic tools and the potential international implications of their currency policies.

What was the market's reaction to the PBOC's currency fixing?

• The market was indifferent.

• The market showed a slight decline.

• The market reacted with a significant jump.

• The market remained stable.

What is the significance of the gap between the onshore and offshore yuan?

• It shows a strong yuan.

• It suggests potential for further depreciation.

• It indicates a stable currency.

• It reflects a balanced trade.

How might China respond to being labeled a currency manipulator?

• By increasing tariffs.

• By ignoring the label.

• By fixing the yuan lower.

• By fixing the yuan higher.

What tools does China have to manage its economy?

• Only monetary tools.

• No tools available.

• Only fiscal tools.

• Both fiscal and monetary tools.

What could be a consequence of further yuan devaluation?

• Increased capital flight.

• Stronger international relations.

• Higher economic growth.

• Stable market conditions.