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Yuan Still Supported For Basic Stability

CHINA PRESS
MNI (Singapore)

The yuan still has support to remain stable with the Chinese economy continuing to recover, though a likely strong U.S. dollar could tame any significant appreciation. A stronger central parity quotation of the yuan shows regulators’ determination to stabilise the currency, while offshore yuan liquidity continues to tighten with major Chinese banks absorbing USD from the swaps market and release them in the domestic spot market, said an unnamed foreign exchange trader. The yuan may fluctuate around 7.3 against USD. (Source: China Securities Journal)

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