Comments on China and the yuan from Goldman Sachs (currency analyst Robin Brooks and team) via Bloomberg
Yuan has "limited" room for further depreciation ... "The yuan is essentially at fair value" says the report
- Falling oil prices will help boost the government's current account surplus & offset capital outflows
- A relatively strong export market compared to other developing nations
Low crude prices may prop up its surplus to about $360 billion this year - a level last seen before the GFC
- The increase will provide additional "space" in China's balance of payments to absorb capital outflows
