StanChart’s Zhang Sees USD-CNY at 7.23 by End of Year

The video discusses the impact of the US-China trade war on currency trends, forecasting the USD/CNY rate to reach 7.23 by the end of the year. It highlights the reluctance of China to use FX reserves to defend its currency and the potential meeting of US and Chinese leaders in November. The video also examines the overvaluation of the US dollar, influenced by Federal Reserve policies and global economic events like Brexit. Despite the dollar's high valuation, it is expected to rise against Asian EM currencies due to investor behavior and market risks.

What is the forecasted USD/CNY exchange rate by the end of the year?

• 6.5

• 7.23

• 7.5

• 6.8

Why is China reluctant to use its FX reserves?

• To reduce inflation

• To avoid depleting reserves

• To increase currency value

• To strengthen trade relations

What event is likely to influence the Chinese currency in November?

• US elections

• Federal Reserve meeting

• Brexit

• US-China leadership meeting

What is the current status of the US dollar according to the Federal Reserve's index?

• Unchanged in 20 years

• Average in 20 years

• Highest in 20 years

• Lowest in 20 years

Which global event is NOT mentioned as a risk factor for currency values?

• Middle East conflict

• Federal Reserve rate cuts

• Brexit

• US-China trade talks