Breaking News

China is Making its Currency Less Predictable
Download PDF
1 Star2 Stars3 Stars4 Stars5 Stars (No Ratings Yet)

China’s currency according to Bloomberg News is becoming less predictable and investors are paying the price. According to data collected by Morgan Stanley and the Depository Trust & Clearing Corp. in Washington, clients of U.S. commercial banks have lost around $2 billion this year on $332 billion of options betting the yuan would appreciate and Chinese companies lost $3.5 billion on $150 billion wagered on a benchmark forwards contract. The losses in the options market were on outstanding yuan call options reported by U.S. banks, which clients took out to hedge or speculate on the Chinese currency.

A former senior coordinator for China affairs at the U.S. Treasury and now a Los Angeles-based analyst at TCW Group Inc., David Loevinger said that “The depreciation was engineered to burn the fingers of speculators.” Acceleration in the yuan’s declines might cause concern among China’s trading partners.


The world’s largest currency trader, Deutsche Bank, reported that according to Bloomberg News, the yuan’s slide risks becoming a “slippery slope.”

Perry Kojodjojo, a Hong Kong-based strategist at the German bank, predicted the yuan will weaken beyond 6.3 per dollar, without specifying when.

A Hong Kong-based senior strategist at HSBC Holdings Plc, Ju Wang, said by phone that according to Bloomberg News, “I don’t think the currency will depreciate big time.”

Get JD Journal in Your Mail

Subscribe to our FREE daily news alerts and get the latest updates on the most happening events in the legal, business, and celebrity world. You also get your daily dose of humor and entertainment!!

Image Credit:



Associate Attorney - 1-3 years experience


Rymer, Echols, Slay & Nelson-Archer, P.C. is seeking an associate for our office in the Houston Gall...

Apply now

Intellectual Property Attorney


Bodman is seeking to fill two full-time attorney positions in its Intellectual Property Practice Gro...

Apply now

Associate Attorney (Commercial Real Estate)


Dynamic six (6) attorney boutique commercial real estate law firm located in the Mosaic District of ...

Apply now

Sr. Attorney

USA-CA-Monterey Park

Yang Law Offices is a boutique law firm headquartered in the City of Monterey Park, with a team of 1...

Apply now




Search Now

Remote Sales/recruiting Professionals


Remote Sales/Recruiting Professionals: No Cold Calling Required BCG Attorney Search is seeking a ...

Apply Now

Real Estate Finance Associate Attorney


Northfield office of a BCG Attorney Search Top Ranked Law Firm seeks a real estate finance associate...

Apply Now

Real Estate Finance Attorney


Northfield office of a BCG Attorney Search Top Ranked Law Firm seeks real estate finance attorney wi...

Apply Now


To Top