Economics
PBOC Warns Against One-Way Yuan Bets After Rally to 6-Year High
- PBOC seeks to step up risk control amid overseas tapering risk
- China sets daily yuan reference rate at slightly weaker level
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China’s central bank is asking financial institutions and enterprises to step up exchange-rate risk management and refrain from making one-way bet on the yuan after the currency climbed to a six-year high against a basket of peers.
Volatility of the Chinese currency may increase in the future as overseas central banks have started adjusting their monetary policies, with two-way fluctuation of the yuan rate expected to be “the norm”, according to a statement posted on the website of the People’s Bank of China.