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MNI BRIEF: Chinese Banks Suspend CNY Counter-Cyclical Factor

BEIJING (MNI)

Chinese banks have suspended the counter-cyclical factor while setting their daily yuan central parity rate against the greenback, the China Foreign Exchange Trade System (CFETS) said Tuesday in a statement

The adjustment will improve the transparency and efficiency of the CNY fixing and reflect the market's role in the foreign exchange self-discipline mechanism, the CEFTS said.

So far this year, the yuan exchange rate has fluctuated in both directions amid increased flexibility as the forex market has remained stable and international payments in balance, it said.

MNI London Bureau | +44 203-865-3829 | jason.webb@marketnews.com
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MNI London Bureau | +44 203-865-3829 | jason.webb@marketnews.com
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