Justin had the news from the People’s Bank of China here on Monday:
PBOC governor will maintain yuan exchange rate at a reasonable, balanced level
The PBOC governor Pan Gongsheng emphasized that the Bank will not let the yuan plummet without a fight:
Will step up countercyclical adjustmentShould resolutely guard against the risk of exchange rate overshoot
Today is an example of the Bank pushing back on yuan weakness, with the reference rate set 300+ points stronger for the CNY than was expected (in the Reuters model).
Offshore yuan has jumped (lower USD/CNH as shown in the chart below):
This article was written by Eamonn Sheridan at www.forexlive.com.
