BNP strategists remarking on the yuan basket, looking for of the RMB nominal effective exchange rate

(this via Bloomberg)

  • Says the CFET RMB index was overvalued to start with
  • China's higher inflation vs. trading partners to result in depreciation pressure on yuan
  • China authorities to welcome depreciation in basket, as long as no large move in USD/CNY
  • Say 90.0 for the index could become an anchor point

Noe, RMB basket is around 94 at present