Economics
China's Central Bank Faces Trump Headache
- Protectionism may fuel international yuan use, StanChart says
- PBOC faces a difficult choice in balancing yuan with outflows
Prasad: Trump Scores 'Easy Win' Being Tough on China
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As if defusing the world’s biggest debt bomb while keeping economic growth humming wasn’t tough enough, Donald Trump’s shock election victory has just made the policy outlook even more complex for People’s Bank of China Governor Zhou Xiaochuan.
The president-elect’s threats to slap tariffs of up to 45 percent on Chinese imports cast a shadow over the economy’s stabilization and the world’s most crucial trade relationship. Protectionism may fuel more international use of the yuan, according to Standard Chartered Plc, while UBS Group AG says tariffs may push the PBOC to let the yuan fall further.