Behind Chinese Yuan's Tiny Drop, Indications of True Crisis Lurk
- Borrowing costs for yuan in Hong Kong surged to 67% from 4%
- PBOC burnt through more than $500 billion in reserves in 2015
China's Choice: Devalued Yuan or Increased Stimulus
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The Chinese yuan’s 6 percent decline over the past five months is hardly anyone’s idea of a crisis. On average it comes out to a drop of less than 0.04 percent a day. But behind the scenes, Chinese policy makers are unleashing a torrent of measures to stabilize the currency and prevent it from tumbling.
Added up, these efforts rival some of the biggest currency defenses seen in emerging markets over the past two decades. Here’s a quick look at the central bank’s most aggressive steps.