4 Mar 2016
USD/CNY: credit will not solve the problem - BTMU
Analysts at Bank of Tokyo Mitsubishi explained that declining FX vols probably mean another steady trading week ahead, which is the norm whenever the Two Meetings come up.
Key Quotes:
"As we wrote in our monthly, the issue is less that February might show a reserves rise than the size of the rise. At the NPC, plans are not the issue but implementation.
We do sense a greater importance being attached to economic issues this year vs. last year; whether this will be all too late remains the key question. We are watching FDI to see if it slows. Credit is not going to solve the problem."
Key Quotes:
"As we wrote in our monthly, the issue is less that February might show a reserves rise than the size of the rise. At the NPC, plans are not the issue but implementation.
We do sense a greater importance being attached to economic issues this year vs. last year; whether this will be all too late remains the key question. We are watching FDI to see if it slows. Credit is not going to solve the problem."