Yuan Pressures Intensify as Brexit Deals Blow to PBOC Policy

Brexit is upending China’s yuan policy.

After Britain’s shock vote for secession, officials in Beijing are contending with a slumping euro and mounting economic uncertainty in Europe, just as a surging dollar raises the risk of capital outflows. That’s forcing a deviation from China’s strategy for much of this year, where authorities maintained limited gains versus the greenback to buoy confidence in the yuan’s stability, while guiding depreciation against the currencies of its trading partners helped bolster exports.