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PR Newswire
03-03-2014, 09:53 PM
Yes, it is closely observed...
China central bank warns against reading too much into yuan’s fall
BEIJING – China’s central bank downplayed the yuan’s recent fall on Monday, saying the world’s second-largest economy is in a good shape and the currency’s decline did not reflect fundamentals.
The yuan suffered its largest weekly fall in 20 years last week by losing 0.9 per cent, an insignificant fall by the standards of other major currencies, but a milestone for the yuan, whose value is strictly managed by China to avoid sharp changes.
“The fundamentals of China’s economic growth are good,” Mr Yi Gang, the deputy governor of the People’s Bank of China (PBOC) told reporters in the run-up to China’s annual parliament meeting. “Please do not worry. The fluctuation in the yuan is normal.”
Traders said the abrupt fall in the yuan was orchestrated by the PBOC in collusion with state-owned banks to squeeze investors who had placed large bets that the currency would continue to strengthen.
The sudden reversal also had stoked fears among some investors that China’s economy was cooling faster than thought, leading authorities to deliberately suppress the yuan to keep exports competitive -- a notion dismissed by some economists.
...
http://www.todayonline.com/business/chin...yuans-fall
China central bank warns against reading too much into yuan’s fall
BEIJING – China’s central bank downplayed the yuan’s recent fall on Monday, saying the world’s second-largest economy is in a good shape and the currency’s decline did not reflect fundamentals.
The yuan suffered its largest weekly fall in 20 years last week by losing 0.9 per cent, an insignificant fall by the standards of other major currencies, but a milestone for the yuan, whose value is strictly managed by China to avoid sharp changes.
“The fundamentals of China’s economic growth are good,” Mr Yi Gang, the deputy governor of the People’s Bank of China (PBOC) told reporters in the run-up to China’s annual parliament meeting. “Please do not worry. The fluctuation in the yuan is normal.”
Traders said the abrupt fall in the yuan was orchestrated by the PBOC in collusion with state-owned banks to squeeze investors who had placed large bets that the currency would continue to strengthen.
The sudden reversal also had stoked fears among some investors that China’s economy was cooling faster than thought, leading authorities to deliberately suppress the yuan to keep exports competitive -- a notion dismissed by some economists.
...
http://www.todayonline.com/business/chin...yuans-fall
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