Currencies
PBOC Set to Reveal Hand on Yuan as Depreciation Talk Mounts
China’s benchmark government bond yields fell toward a record low on Monday.
Source: Bloomberg
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A dramatic escalation in the trade war has brought China to a crossroads, with policymakers set to decide if they should retain a tight grip on the yuan or let it weaken to counter some fallout from US tariffs.
On Monday, Beijing weakened yuan’s daily reference rate to just 0.03% away from 7.20 per dollar, a level closely guarded by authorities since the election of President Donald Trump in November. The move fueled bets that China may allow the currency to weaken past the soft red line to raise the appeal of its exports and boost growth.