PBOC's Ma Sees Stable Yuan as Peg Shifts to Basket From Dollar
- Changes to yuan-dollar rate related to closing price, basket
- JPMorgan had said fixings confirmed shift to weaker yuan
China Yuan Fairly Valued at 10-15% Drop: de Longis
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Investors misunderstood the People’s Bank of China’s intentions in its recent moves on the yuan’s daily reference rate against the dollar, a top central bank researcher said, days after a 0.5 percent devaluation contributed to global market turmoil.
While analysts at JPMorgan Chase & Co. have said the weaker fixings were a “clear confirmation of a shift in the mindset of Chinese authorities” in favor of a weaker yuan versus the dollar, Ma Jun, chief economist at the PBOC research bureau, said the fixings are based on the previous day’s closing price and changes to the basket of currencies against which the yuan is valued. Ma’s comments were posted Monday on the central bank’s website.