Yuan at a crossroads

Slow gains: A pedestrian walks past the PBoC headquarters in the financial district of Beijing. An analyst says the yuan will continue to weaken, but the pace will be controlled by the central bank. — Bloomberg

HONG KONG: The yuan is setting course to depreciate this year as risks to economic growth put an end to two straight years of gains.

The resurgence of Covid lockdowns and surging commodity prices are spurring doubts over China’s 5.5% growth target this year. The prospect of further monetary easing at a time when global central banks hike rates is set to accelerate outflows and further undermine the yuan.