I posted on ANZ's Research on the new RMB basket, they expect higher volatility

ANZ on China's new yuan basket: Expect higher volatility in USD/CNY fixing & spot rate

Others, though, disagree:

Goldman Sachs says the new expanded basket

  • Appears to have mitigated the market's concern about a sharp one-off devaluation risk
  • New basket "would have shown somewhat less depreciation, falling 2.4 percent in 2016 vs. 3.7 percent actual performance
  • And it would also have shown less volatility

Barclays:

  • New basket is not markedly different
  • Say the yuan is less volatile ... the new index in H2 of 2016 "has been relatively stable" ... & in an even narrower range"

Société Générale:

  • Impact of new basket "inconsequential"
  • The difference is minuscule
  • The volatility pattern of the old and new index is very similar over time

via Bloomberg