Currency News: Big bet, short Yuan!

Currency News

Despite reassuring messages from Chinas Central Bank, some Hedge funds are making big bets against the currency of the country, which is suffering a slowdown in its economy and capital outflows.

currency news

Managers of several hedge funds seem to be convinced that the Yuan will be devaluated strongly over the medium term. There are many investors who are making big bets against the Yuan. Experts justified this movement on the slowdown of the economy and capital outflows that China is suffering now.

For example, Kyle Bass from Hayman Capital Management thinks that the Yuan could lose more than 40% in the next three years. Meanwhile, billionaire Hedge Fund Manager Stanley Druckenmiller has also redesigned his strategy in recent months, increasing his short positions against many Asian currencies, including the Yuan.

One important reason to motivate investors to short the Yuan is the opinion of George Soros who predicted last week a forced landing and almost inevitable for the Chinese economy. In addition, Soros said that he is betting against currencies of commodities export countries.

After those statements, officials from Central Bank of China said that they are taking measures to stabilize the Yuan and who bet against the currency will lose money.


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