PBOC Dropped Market-Based Yuan System in January, WSJ Says
- Method dropped on Jan. 4, without central bank announcement
- PBOC said stability key in March when asked to let yuan fall
Natixis' Pang: PBOC Learned a Lesson in January
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The People’s Bank of China scrapped its market-based mechanism for managing the yuan on Jan. 4 and returned to setting the exchange rate based on what suits authorities the best, the Wall Street Journal reported, citing unidentified people close to the central bank.
An unidentified official from the PBOC in March told economists and bankers that “the primary task is to maintain stability” when they asked the central bank to stop fighting markets and let the yuan’s value fall at a closed door meeting, citing previously undisclosed minutes of the gathering.