USD-CNY Isn’t Far From Fair Value at This Stage, Says StanChart’s Liu

The video discusses the valuation of the renminbi, the US-China trade deal, and changes in the CNY fixing mechanism. It highlights the impact of trade negotiations on currency strength and fair value, with a focus on tariffs. The PBOC's challenges in managing economic pressures and liquidity measures are also covered.

What is the main reason for the recent changes in the fixing behavior of the renminbi?

• Increased demand for the renminbi

• Changes in European economic policies

• China-US trade negotiations

• Fluctuations in global oil prices

How does the fair value analysis determine the value of the dollar-CNY exchange rate?

• Through historical exchange rate trends

• By comparing it to the Euro

• Using the average level of tariffs imposed by the US

• Based on global oil prices

What is one of the key challenges faced by the PBOC according to the transcript?

• Reducing foreign investments

• Balancing disinflationary pressures

• Increasing the interest rates

• Managing high inflation rates

What is the PBOC's strategy to support the economy without cutting interest rates?

• Raising taxes

• Injecting liquidity into the market

• Reducing government spending

• Increasing foreign reserves

What is the expected impact on CPI inflation by the end of the year?

• It will drop below 2%

• It will decrease significantly

• It will remain stable at 3%

• It might rise towards 3.5%