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
- 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: