PBOC Will Let Market Forces Drive Yuan, Mizuho's Cheung Says

The video discusses the weakening of the Chinese Yuan (CNY) and the factors driving this trend, including the People's Bank of China's (PBOC) easing measures and intervention policies. The discussion highlights the impact of these measures on the currency and market expectations, comparing the current situation to past events. The PBOC's strategy to stabilize the currency and its implications for trade and capital outflows are also explored.

What is one of the main reasons for the weakening of the Chinese Yuan according to the first section?

• Increased foreign investment

• PBOC's stronger easing bias

• Rising global oil prices

• Decrease in export demand

How does the PBOC's current intervention policy differ from the period between 2015 and 2017?

• There is less severe capital outflow pressure now.

• The PBOC is not using currency weakness as a tool.

• There is a stronger capital outflow pressure now.

• The PBOC is focusing on increasing interest rates.

What is the PBOC's strategic use of currency weakness aimed at addressing?

• Increasing foreign reserves

• Boosting export demand

• Weakening earnings growth momentum

• Reducing inflation rates

What level is the PBOC considering to stabilize the Yuan at, according to the third section?

• 6.5

• 6.8

• 7.0

• 6.2

What might the PBOC use the Yuan's weakness as a tool for, in the context of trade tensions?

• To increase domestic consumption

• As a trade war tool

• To attract foreign investment

• To stabilize global markets