Updated

Updated · Bloomberg · Jul 14

Deutsche Bank Says Yuan Is 15% Undervalued Against Euro as EU Trade Deficit Widens

Updated

Updated · Bloomberg · Jul 14

Deutsche Bank Says Yuan Is 15% Undervalued Against Euro as EU Trade Deficit Widens

1 articles · Updated · Bloomberg · Jul 14

Deutsche Bank said the yuan remains about 15% below fair value against the euro despite recent gains, arguing the gap is helping widen the European Union’s trade deficit.
Monday’s report by strategist Shreyas Gopal based that estimate on several valuation gauges, including purchasing power parity and external balances.
The bank said the yuan’s undervaluation has narrowed from roughly 20% a year ago, but still leaves Chinese goods relatively cheap for euro-area buyers.
That assessment adds to concern in Europe that exchange-rate misalignment is reinforcing trade imbalances even as the yuan strengthens.

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