PBOC statement on yuan FX rate not to be used to spur exports, offset commodity price rises

A statement from the  People’s Bank of China on Thursday, useful background info on what the Bank is conveying on the yuan.

  • exchange rate of the CNY can’t be used as a tool to spur exports
  • or to offset the impact of commodity price rises

Adds:

  • FX market is currently “balanced”
  • yuan rate could go either way in the future
  • “The key is to properly manage expectations, firmly crack down on attempts to manipulate the market or ‘maliciously’ create one-sided expectations,” the statement said. “Enterprises and financial institutions should adapt to a two-way fluctuation of the exchange rate.”

CNH has been on a persistent rip higher:

A statement from the  People's Bank of China on Thursday, useful background info on what the Bank is conveying on the yuan.

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