Chinese economists have admitted the fall of the yuan by 20% by the end of 2016

Almaty. August 26. Silkroadnews - In studies conducted by government agencies of China, allowed the weakening of the Chinese currency to the level of 7 yuan for $1 by the end of this year, RBC.
The deputy head of the People's Bank of China Yi Gang earlier assured that the regulator will not allow the devaluation of the yuan by 10%, to increase exports, and called such speculation "nonsense". According to Bloomberg, the chances of weakening to a level of 7 yuan/$1 at the end of the year is 9%, and to the level of 8 yuan/$ 1 by the end of next year - 5%.
According to a former member of the Monetary Policy Committee of the People's Bank of China Yu Yongding, an attempt to keep the yuan from weakening may require considerable expenditure of foreign exchange reserves. He believes that foreign exchange intervention should be minimized and let the market determine the exchange rate. He also said that he considers the collapse of the yuan unlikely, as China has a substantial trade surplus.
The economist of Singapore branch of Commerzbank Zhou Hao believes that China will not allow the currency to depreciate to a level of 7 yuan for $1 by the end of the year, as this development may have unforeseen pressure on foreign debt payments and capital movements.
According to the median estimates of 28 sources made by Bloomberg in August, China's foreign exchange reserves will decline until the end of this year, approximately by $40 billion a month. Beijing has spent the last seven weeks $200 billion for the purchase of shares, to keep from falling stock market, says Financial Times. But on Monday decided to stop intervention after the fall of the index of the Shanghai Stock Exchange by 8.5%. On Tuesday, the Shanghai Composite has fallen a further 7.6% and for the first eight months dropped below 3000, to 2964.97.
Meanwhile, today, the Russian media reported that the Shanghai stock exchange index stabilized after a two-day drop. So, the morning trading on the Shanghai Stock Exchange on Wednesday after a two-day drop of the index opened higher by 0.53%. This happened after the decision of the Chinese central bank to lower interest rates on deposits and loans and the tightening of the terms of trade index futures.
China's financial regulator earlier informed on the cut from Wednesday interest rates on deposits and loans by 0.25 percentage points, the rate on loans was at 4.6%. In addition, from September 6, the Central Bank lowered reserve requirements for banks by 0.5 percentage points.
In addition, on Wednesday the China Financial Future Exchange announced an increase in commissions and margin requirements (the requirement of making a security deposit) for the index futures to curb speculation.