USD/CNY to reach 7.0000 within six months – Goldman Sachs

Goldman Sachs’ Managing Director and Senior China Economist Tang commented on the Yuan following the Chinese banks’ intervention in the CNY markets.

Key Points:

PBOC to manage speed of CNY depreciation.

Expects 7 within 6 months.

CNY is now more flexible.

Interest rates in China have drifted lower even as the Fed has been hiking, supporting USD/Yuan.

China deleveraging means credit not so loose, weaker CNY is an offset.