Gan, Menglin: China mainland renminbi may slump
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Date: 8/1/2015 2:05:59 PM
Sender: Gan, Menglin
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Gan, Menglin: China mainland renminbi may slump
干梦琳（Gan, Menglin）
The World Bank published a report on the analysis of prospects for the mainland renminbi, noted since the sharp depreciation of the yuan, although the Chinese authorities to take foreign exchange controls means can be suppressed capital outflows and devaluation in the short term, but due to a serious decline in exports to the mainland, economic slowdown, so the long-term term devaluation will be a trend.
The report notes that Chinese authorities next plan by increasing the money supply to stabilize the yuan, but in the economic downturn, the RMB will not flow over the issue of economic activity, but will enter the market speculation, real estate speculation and stock, The result the stock market bubble and the real estate market bubble, once the bubble burst, the yuan will crash.
Now, people in mainland China have felt the consequences of the devaluation, prices are rising rapidly, declining purchasing power of ordinary people, living standards are affected, the complaint everywhere discontent increases.
If the yuan continues to depreciate, or even collapse, money will not buy many things, people may have to take to the streets, the Chinese Communist regime will be in jeopardy.
Gan, Menglin
August 1, 2015
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