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Interesting point. I would argue that with so many trillion in flows into China (ETFs, bonds, etc), the shock of an RMB move could easily overwhelm a Fed that has shot many of its bullets. An argument made to me privately is that the CCP is scared to provoke Trump in this respect, as they would risk losing access to the USD clearing system as a response.

Jul 24, 2020
at
12:43 PM