Economics
China Shows Signs of Loosening Yuan Grip as It Starts Easing
- PBOC is letting the market pull it along grudgingly, RBC says
- Move follows efforts to rein in currency rally in December
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China’s central bank set its strongest reference rate for the yuan in three years in a sign it’s loosening its grip on the currency amid a relentless rally.
The People’s Bank of China set the reference rate at 6.3485 per dollar, the strongest since May 2018, similar to the average estimate in a Bloomberg survey. The move came after the dollar fell for two straight days, and indicated that the central bank is allowing the market to drive the yuan.