Oil Fund could lose more assets, because of devaluation of Chinese currency

Yuan keeps on getting weaker against US dollar, because of slowing down of growth of the Chinese economy. This is the forecast of analysts of Goldman Sachs bank. Earlier Chinese People’s Bank has weakened the national currency by almost 2%.

Goldman Sachs analysts believe that after three months the Chinese currency rate against USD will be 6.45. Andrei Dirgin, analyst of Alfa Forex company, is confident that the Chinese authorities’ measures to weaken the national currency are aimed at increasing export to urge on growth of the country’s GDP.

None of the experts doubt that the Goldman Sachs’ forecast about further weakening of Yuan will come true. This promises nothing good to other developing markets, including Russia, believes Alexander Butmanov, managing partner of Dream Team Investments company.

Goldman Sachs’ analysts believe that by the end of 2016 USD will cost 6.7 Yuan against 6.2 as it was earlier expected. Now Chinese currency is traded at 6.39 Yuan per 1 USD.

* In early July 2015 State Oil Fund of Azerbaijan (SOFAZ) bought Chinese currency to a total amount of 3 billion Yuan ($483 million at the rate that time) to diversify its investment portfolio. SOFAZ has started investing into Yuan after in June 12, 2015 indexes at the Chinese stock market have reached their seven-year maximum and the market has increased by 150% during the past year. However, right after that the stock market has entered the phase of decline and the indexes dropped by 30% (Chinese companies have lost almost $3 trillion of capitalization).—0--