The Chinese yuan is under the spotlight, as it will be allowed to appreciate
China's central bank officials announced that the PBOC would keep the yuan's exchange rate at "stable" levels based on supply and demand. Moreover, according to Liu Guoqiang, the vice governor at the People's Bank of China, the exchange trend will be affected by the changes in international financial markets.
Liu continued by saying that the existing exchange regime is currently suitable for China and for he expects it to be for "a good period of time in the future."
The announcement came after officials suggested that the currency could be allowed to appreciate, and authorities should eventually let up on controlling it. The bank had stopped regular intervention and will let the market play a more significant role in deciding the exchange rate.
At the moment of writing, USD/CNH is trading 0.18% lower at 6.4239.
Sources: Bloomberg.com, investing.com
Users/readers should not rely solely on the information presented herewith and should do their own research/analysis by also reading the actual underlying research. The content herewith is generic and does not take into consideration individual personal circumstances, investment experience or current financial situation.
Therefore, Key Way Investments Ltd shall not accept any responsibility for any losses of traders due to the use and the content of the information presented herein. Past performance is not a reliable indicator of future results.