Bloomberg News

China May Restart Yuan Peg in Global Recession, Barclays Says

September 29, 2011

Sept. 29 (Bloomberg) -- China my again peg the yuan to the U.S. dollar or to a basket of currencies if there is a global recession, Huang Yiping, Barclays Capital’s chief economist for emerging Asia, said at a briefing in Beijing today.

If China does again peg the yuan, there is a stronger case to peg it to a basket of currencies, Huang said.

The “bottom line” is that China, in the midst of a global recession, wouldn’t allow the yuan to appreciate steadily and there may be depreciation pressure on the Chinese currency, Huang said. In a global recession, the chances of a hard landing for China increase, he said.

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