Monday, 11 January 2016

What is the impact of a weak yuan on the ringgit?

WITH expectations of further yuan devaluation, the prospects for a weaker ringgit has come under the spotlight.

A question relating to what extent could the ringgit drop on the back of yuan weakening has drawn mixed views.

“A sudden devaluation by as much as 15% may happen for the yuan this year and this may trigger a sudden drop in the ringgit of about the same order,” said Pong Teng Siew, head of research, Inter-Pacific Securities.

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