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Weekly House View: CNY and CNH converges

Two months after an August fixing reform with the backdrop of a weakening yuan, the CNY and CNH have converged at about 6.34. Voluminous movements in the yuan market including onshore capital outflows, offshore deposit outflows, deleveraging, hedging and more, the market may have settled. This is key for a nation aiming to have its currency included in the IMF’s Special Drawing Rights…

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