Yuan Drops to 10-Week Low After PBOC Official Calls for Reform
- Opening of capital account should be sped up: PBOC official
- Market is testing PBOC's resolve to support yuan: OCBC
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The yuan fell to a 10-week low after a central bank official said China should accelerate the opening of its capital account, spurring speculation there will be less intervention once it wins reserve currency status.
Speeding up yuan convertibility under the financial and capital accounts is important in getting the currency ready for greater global usage, Caixin magazine reported Tuesday, citing Zhou Chengjun, an official at the People’s Bank of China’s monetary policy department. The authority’s holdings of U.S. Treasuries have fallen to the lowest level since February as China used its foreign-exchange reserves to support the yuan amid efforts to be added to the International Monetary Fund’s Special Drawing Rights.