The State Administration of Foreign Exchange (SAFE) in the regulator:
Will strengthen countercyclical supervision, improve the solvency,
deposit reserve mechanismsStudying broadening
the scope of foreign shareholders in non-bank institutionsChina’s forex market
operation is resilientChina’s forex market
faces increasing adjustmentChina’s forex market
has condition for steady operation in futureChina’s forex market
remains reasonable and orderlyWill pay high
attention to changes in external environmentWill prevent yuan
exchange rate from overshooting, and prevent risks from abnormal
cross-border capital flow
This is the offshore yuan, CNH, which trades without the +/- 2% restriction China imposes on the onshore yuan, CNY. The two never get too far out of line (depends how you define too far out of line course):
This article was written by Eamonn Sheridan at www.forexlive.com.
