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Reads to me like policy is moving back towards growth and ‘inflation?’
I don’t expect runaway inflation but enough to continue to fundamentally continue to weaken the currency.
China’s currency has been fundamentally weakened for the last couple of years, while being supported vs the dollar by foreign investment, speculation, and what looks to me like the indirect expenditure of dollar reserves. Should the currency starts falling against the dollar it will tell me those factors have run their course.
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