Trading in renminbi futures came under scrutiny yesterday following a delay to the publication of a US report that was expected to brand China a “currency manipulator”.
There was speculation that the delay in releasing the Treasury's foreign exchange report, originally due on April 15, would help thaw Sino-US relations and give China time to loosen its currency peg to the dollar without causing damage to its own recovering economy, and without appearing to be bowing to foreign pressure.
However, one-year non-deliverable forward contracts on the renminbi traded at Rmb6.6330 against the dollar yesterday, reflecting expectations of appreciation in the renminbi in one year's time of about 2.8 per cent – well within the likely range implied by its current managed trading band.