Asia’s currency markets hit by Brexit uncertainty

Author: Brian Yap | Published: 28 Jun 2016

As Britain’s vote to leave the European Union causes currency fluctuations in major economies across the Asia, uncertainty surrounds how the Chinese market will respond in the long term

The Brexit came the day before the Monetary Authority of Singapore’s announcement of its plan to include yuan-denominated assets in its foreign reserves, which total $247 billion as of the end of May.

Counsel in Beijing argue that the Brexit announcement, which has been followed by market volatility, has created uncertainty for major markets across the region. "It is difficult to predict how the (Chinese) market will react at the moment," said  Tiecheng Yang, partner at Clifford Chance in Beijing.

The June 23 announcement by MAS came less than four months before the yuan’s admission to the International Monetary Fund’s...