Free Trial

PBOC Sees Yuan Rally Overdone, Signals Intervention: Daily

CHINA PRESS
MNI (Singapore)

The PBOC signaled its intention to correct the market's bullish expectation on the yuan on concerns that of risk of the currency deviating from economic fundamentals, the Economic Information Daily reported citing Guan Tao, chief global economist of BoC International and a former forex official. The PBOC’s hike of banks' forex reserve ratio by 2 percentage points on Thursday will help soak up U.S. dollar liquidity in China and narrow domestic yuan-dollar interest spreads, Guan was cited as saying. Hiking up reserve ratio can reduce speculative trading as well as avoid impacting exports with a stronger yuan, the newspaper said citing analysts. Offshore yuan quickly retreated to around 6.38 against the dollar from the previous 6.35 after the move, the newspaper said.

To read the full story

Close

Why MNI

MNI is the leading provider

of intelligence and analysis on the Global Fixed Income, Foreign Exchange and Energy markets. We use an innovative combination of real-time analysis, deep fundamental research and journalism to provide unique and actionable insights for traders and investors. Our "All signal, no noise" approach drives an intelligence service that is succinct and timely, which is highly regarded by our time constrained client base.

Our Head Office is in London with offices in Chicago, Washington and Beijing, as well as an on the ground presence in other major financial centres across the world.