Eyes on the USD/CNY reference rate setting after yesterday’s PBOC yuan

The comments followed a bot more of a muddled message from the boss, PBOC Gov Yi Gang when he hinted that the PBOC may loosen its control over the exchange rate of the yuan:

  •  improve market-based floating exchange rate mechanism with reference to basket currencies

Then vowed further intervention anyway: 

  • will keep yuan exchange rate basically stable at reasonable levels

I doubt we’ll see the PBOC fully relax yuan controls at the mid rate today! But, going ahead the message seemed to indicate more freedom for the rate. We’ll see…

usd cnh candle weekly chart


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