PBOC: Able to keep the Yuan stable at a reasonable balanced level

Dhwani Mehta FXStreet

After setting the Yuan reference rate at its weakest this year, the People’s Bank of China (PBOC) says that it is able to keep the Yuan stable at a reasonable balanced level.

Additional Headlines:

Can keep yuan absolutely stable.

Depreciation of yuan due to trade protectionism, tariffs on Chinese goods.

Fluctuation in yuan is normal.

Foreign exchange market can find its balance on its own.

It has confidence in its ability to maintain yuan's exchange rate at a reasonable level.

PBOC will crack down on short-term speculation on the Yuan.

Will encourage enterprises to purchase hedging products to avoid exchange rate risks.

Suggests investors not put too much attention on speculation in the foreign exchange market.

Normal for yuan to fluctuate in both directions.

Extra Reading:

China said to ask State buyers to halt US agriculture imports - Bloomberg

USD/CNH rises above the symbolic level of 7.00

PBOC sets Yuan reference rate at 6.9225

Author

Dhwani Mehta

FXStreet

Residing in Mumbai (India), Dhwani is a Senior Analyst and Manager of the Asian session at FXStreet. She has over 10 years of experience in analyzing and covering the global financial markets, with specialization in Forex and commodities markets.

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