• While a weaker yuan could help boost exports, a sharp decline could trigger panic about financial stability and take the shine off Chinese assets — although some strategists see that as a boon for the nation’s bonds. | REUTERS
    While a weaker yuan could help boost exports, a sharp decline could trigger panic about financial stability and take the shine off Chinese assets — although some strategists see that as a boon for the nation’s bonds. | REUTERS

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The yuan is setting a course for depreciation this year as risks to economic growth put an end to two straight years of gains.

The resurgence of COVID-19 lockdowns and surging commodity prices are spurring doubts over China’s 5.5% growth target for the year. And the prospect of further monetary easing as global central banks hike rates is set to accelerate outflows and further undermine the yuan.

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