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People's Bank of China will keep the exchange rate "stable"

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Miguel A. Rodriguez
Miguel A. Rodriguez
24 May 2021
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

This information/research prepared by Miguel A. Rodriguez does not take into account the specific investment objectives, financial situation, or particular needs of any particular person. The research analyst primarily responsible for the content of this research report, in part or in whole, certifies that the views about the companies and their securities expressed in this report accurately reflect his/her personal views and consequently any person acting on it does so entirely at their own risk.The research provided does not constitute the views of KW Investments Ltd nor is it an invitation to invest with KW Investments Ltd. The research analyst also certifies that no part of his/her compensation was, is, or will be, directly, or indirectly, related to specific recommendations or views expressed in this report.The research analyst in not employed by KW Investments Ltd. You are encouraged to seek advice from an independent financial adviser regarding the suitability of the investment, under a separate engagement, as you deem fit that conforms to your specific investment objectives, financial situation, or particular financial needs before making a commitment to invest. The laws of the Republic of Seychelles shall govern any claim relating to or arising from the contents of the information/ research provided. 

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Miguel A. Rodriguez
Miguel A. Rodriguez
Financial Writer

Miguel worked for major financial institutions such as Banco Santander, and Banco Central-Hispano. He is a published author of currency trading books.