John Normand: Yuan Is Behaving Like a Grown-Up Currency

The video discusses the appreciation of a currency over the past decade and its impact on the economy, particularly in corporate profits and industrial growth. It explains changes in the currency regime, moving from fixed to a more market-responsive approach. The correlation between the 3-month Libor and offshore yuan rates is analyzed, highlighting the influence of US money market reforms and Fed rate normalization on these rates. The discussion concludes with an outlook on the economic dynamics between the US and China, considering potential future rate changes.

In what way do Fed rate normalization stories impact the Chinese economy according to the text?

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What is the expected trend for the Dollar China exchange rate in the coming quarters?

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