Catch-22 for Zhou as Yuan Support Means Quantitative Tightening

Updated on
  • The effort to stem yuan depreciation is draining liquidity
  • Liquidity shortage adds need for easing, pressuring the yuan

Zhou Xiaochuan, governor of the People's Bank of China.

Photographer: Andrew Harrer/Bloomberg

There’s a Catch-22 confronting Zhou Xiaochuan.

To continue reading this article you must be a Bloomberg Professional Service Subscriber.