Goldman Sachs sees China using fixing to strengthen currency - BBG

According to Goldman Sachs strategists led by Robin Brooks, the Chinese central bank has altered its yuan fixing mechanism since a Trump win in favor of a stronger currency, in response to curbing capital outflows.

Brooks noted, “China’s policy makers putting their best foot forward as they await the new administration, though it is also possible they are trying to slow capital outflows via stronger RMB fixing. In either case, some RMB weakness is likely being ‘stored up,” which will eventually materialize given the country’s weakening balance of payments.