http://www.theforexnittygritty.com/forex/new-chinese-normal-and-the-yuan New Chinese Normal and the Yuan Forex traders will want to keep an eye on how the Communist leadership deals with a slowing Chinese economy. President Xi speaks of a new normal for China at the annual parliamentary meeting according to Reuters. China plans to run its biggest budget deficit in 2015 since the global financial crisis, stepping up spending as Premier Li Keqiang signalled that the lowest rate of growth in a quarter of a century is the “new normal” for the world’s No.2 economy. Speaking at the opening of the country’s annual parliamentary meeting on Thursday, Li announced a growth target of around 7 percent for this year, below the 7.5 percent goal that was narrowly missed in 2014. “The downward pressure on China’s economy is intensifying,” Li told around 3,000 delegates gathered at the Great Hall of the People to the west of Beijing’s Tiananmen Square. “Deep-seated problems in the country’s economic development are becoming more obvious. The difficulties we are facing this year could be bigger than last year.” Chinese industrial growth has been spectacular for decades. And the Chinese economic growth miracle is coming to an end. As Forex traders we are interested in the new Chinese normal and the yuan. Will money poured into infrastructure and a push toward higher quality products save China from a hard landing? How will the new Chinese normal and the yuan work out? Lower Growth Targets Lower growth targets are simply a reality as Chinese industrial production and imports suffer. The Guardian reports as China lowers growth target to 7%. China is targeting slower economic growth as tackles “deep-seated” economic problems and reduces its reliance on polluting fuels such as coal, premier Li Keqiang said on Thursday. The world’s second largest economy will target growth this year of around 7%, the lowest expansion for a quarter of a century, Li told the opening of China’s annual parliamentary meeting in Beijing. He also pledged to continue the fight against corruption, stressed the need for more painful reforms to support the economy in the longer term and said energy use would be cut. China may be entering an era of persistent deficit spending. Of course, China has built up huge currency reserves over the years but a large modern nation can go through tens and hundreds of billions of dollars pretty quickly when attempting to stimulate their economy. Deficit spending commonly hurts a currency as the USA has found out over the years. The relationship of the new Chinese normal and the yuan will likely be a lower currency value for China. Interest Rates and Currency Value The new Chinese normal will likely include lower interest rates and lower interest rates will hurt the value of the yuan. Bloomberg reports PBOC seen cutting interest rates in response to a slowing economy.

1. New Chinese Normal
and the Yuan
By www.TheForexNittyGritty.com

2. http://www.theforexnittygritty.com/forex/new-chinese-normal-and-the-yuan
Forex traders will want to keep
an eye on how the Communist
leadership deals with a
slowing Chinese economy.

3. http://www.theforexnittygritty.com/forex/new-chinese-normal-and-the-yuan
President Xi speaks of a new
normal for China at the
annual parliamentary meeting
according to Reuters.

4. http://www.theforexnittygritty.com/forex/new-chinese-normal-and-the-yuan
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5. http://www.theforexnittygritty.com/forex/new-chinese-normal-and-the-yuan
China plans to run its biggest
budget deficit in 2015 since
the global financial crisis,
stepping up spending as
Premier Li Keqiang signalled
that the lowest rate of growth
in a quarter of a century is the
“new normal” for the world’s
No.2 economy.

6. http://www.theforexnittygritty.com/forex/new-chinese-normal-and-the-yuan
Speaking at the opening of the
country’s annual
parliamentary meeting on
Thursday, Li announced a
growth target of around 7
percent for this year, below
the 7.5 percent goal that was
narrowly missed in 2014.

7. http://www.theforexnittygritty.com/forex/new-chinese-normal-and-the-yuan
“The downward pressure on
China’s economy is
intensifying,” Li told around
3,000 delegates gathered at
the Great Hall of the People to
the west of Beijing’s
Tiananmen Square.

8. http://www.theforexnittygritty.com/forex/new-chinese-normal-and-the-yuan
“Deep-seated problems in the
country’s economic
development are becoming
more obvious.

9. http://www.theforexnittygritty.com/forex/new-chinese-normal-and-the-yuan
The difficulties we are facing
this year could be bigger than
last year.”

10. http://www.theforexnittygritty.com/forex/new-chinese-normal-and-the-yuan
Chinese industrial growth has
been spectacular for decades.

11. http://www.theforexnittygritty.com/forex/new-chinese-normal-and-the-yuan
And the Chinese economic
growth miracle is coming to an
end.

12. http://www.theforexnittygritty.com/forex/new-chinese-normal-and-the-yuan
As Forex traders we are
interested in the new Chinese
normal and the yuan.

13. http://www.theforexnittygritty.com/forex/new-chinese-normal-and-the-yuan
Will money poured into
infrastructure and a push
toward higher quality products
save China from a hard
landing?

14. http://www.theforexnittygritty.com/forex/new-chinese-normal-and-the-yuan
How will the new Chinese
normal and the yuan work
out?

15. http://www.theforexnittygritty.com/forex/new-chinese-normal-and-the-yuan
Lower Growth
Targets

16. http://www.theforexnittygritty.com/forex/new-chinese-normal-and-the-yuan
Lower growth targets are
simply a reality as Chinese
industrial production and
imports suffer.

17. http://www.theforexnittygritty.com/forex/new-chinese-normal-and-the-yuan
The Guardian reports
as China lowers growth
target to 7%.

18. http://www.theforexnittygritty.com/forex/new-chinese-normal-and-the-yuan
China is targeting slower
economic growth as tackles
“deep-seated” economic
problems and reduces its
reliance on polluting fuels such
as coal, premier Li Keqiang
said on Thursday.

19. http://www.theforexnittygritty.com/forex/new-chinese-normal-and-the-yuan
The world’s second largest
economy will target growth
this year of around 7%, the
lowest expansion for a quarter
of a century, Li told the
opening of China’s annual
parliamentary meeting in
Beijing.

20. http://www.theforexnittygritty.com/forex/new-chinese-normal-and-the-yuan
He also pledged to continue
the fight against corruption,
stressed the need for more
painful reforms to support the
economy in the longer term
and said energy use would be
cut.

21. http://www.theforexnittygritty.com/forex/new-chinese-normal-and-the-yuan
China may be entering an era
of persistent deficit spending.

22. http://www.theforexnittygritty.com/forex/new-chinese-normal-and-the-yuan
Of course, China has built up
huge currency reserves over
the years but a large modern
nation can go through tens
and hundreds of billions of
dollars pretty quickly when
attempting to stimulate their
economy.

23. http://www.theforexnittygritty.com/forex/new-chinese-normal-and-the-yuan
Deficit spending commonly
hurts a currency as the USA
has found out over the years.

24. http://www.theforexnittygritty.com/forex/new-chinese-normal-and-the-yuan
The relationship of the new
Chinese normal and the yuan
will likely be a lower currency
value for China.

25. http://www.theforexnittygritty.com/forex/new-chinese-normal-and-the-yuan
Interest Rates and
Currency Value

26. http://www.theforexnittygritty.com/forex/new-chinese-normal-and-the-yuan
The new Chinese normal will
likely include lower interest
rates and lower interest rates
will hurt the value of the yuan.

27. http://www.theforexnittygritty.com/forex/new-chinese-normal-and-the-yuan
Bloomberg reports PBOC
seen cutting interest rates in
response to a slowing
economy.

28. http://www.theforexnittygritty.com/forex/new-chinese-normal-and-the-yuan
The People’s Bank of China will
cut benchmark deposit and
lending rates again next
quarter as the economy slows,
according to economists
surveyed by Bloomberg.

29. http://www.theforexnittygritty.com/forex/new-chinese-normal-and-the-yuan
The median forecast is for a
deposit rate of 2.25 percent
and a lending rate of 5.10
percent in the April to June
period, the survey of analysts
from March 2 to March 3
showed.

30. http://www.theforexnittygritty.com/forex/new-chinese-normal-and-the-yuan
That’s 25 basis points lower on
both from the previous survey.

31. http://www.theforexnittygritty.com/forex/new-chinese-normal-and-the-yuan
More interest rate cuts are
probably in store for China as
it seeks to pull the economy
away from recession.

32. http://www.theforexnittygritty.com/forex/new-chinese-normal-and-the-yuan
The relationship of the new
Chinese normal and the yuan
could well be a downward
spiral of lower rates and
economic weakening ending in
a Japan-like deflation.