PBOC is effectively anchoring the Yuan to the dollar - WSJ
|The Wall Street Journal (WSJ) reported a story overnight on the People's Bank of China efforts to stabilize the CNY.
Main Highlights:
China's central bank is effectively anchoring the Yuan to the dollar
Policy has helped stabilize the currency in a year of political transition and market jitters about China's economic management
The Yuan weakened more than 6% against the dollar in 2016; this year, it is up roughly 1%
Implied volatility-is around its lowest in nearly two years
The newfound tranquility may not last ... pressure on the Yuan to weaken could get dangerously bottled up, potentially bring bouts of sharp devaluation
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