China Struggles to Stem Yuan Slide With Fixing, Verbal Warnings
- PBOC set reference rate with largest strong bias on record
- State media says currency will remain basically stable
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The yuan fell, an indication that China’s latest attempts to beef up the currency with a record pushback in the reference rate and verbal warnings is barely holding back a selling wave.
The People’s Bank of China fixed the yuan at 6.9396 per dollar, 647 pips stronger than the average estimate in a Bloomberg survey of analysts and traders, the widest difference on record since Bloomberg started the survey in 2018. The onshore yuan dropped as much as 0.6% Monday even after state media cited the regulator as saying last week companies shouldn’t bet on the direction and extent of currency moves.