China's authorities subtly signal a temporary weakening of the yuan for export competitiveness.
China's tolerance for a weaker yuan may be temporary, as subtle signals from authorities suggest a slow nudge to weaken the currency and regain export competitiveness. The PBOC's daily reference rate has become less rigid and slightly biased towards weakening, and state-owned banks have been less conspicuous in buying the yuan. While a small yuan depreciation is understandable based on nominal exchange rates, prolonged weakening isn't the intent or desired outcome.
May 09, 2024
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