Yi Gang, a deputy governor of the People's Bank of China spoke at the IMF shindig in Wahsington
Adam had an earlier piece here
Note also, at the same venue, Yi was "was pressed repeatedly by an audience seeking clarity on China's policy for the yuan" (Reuters comment)
- Yi stressed that the market was the first determinant of the exchange rate
- Said the PBOC would like to see stability in the yuan
- Authorities would strike a balancing act between pursuing its policy and allowing the market to trade the currency
- "We don't want to see an overshoot (in the yuan that is) severe"
On the daily rate setting for the yuan:
- Says the USD still has a "very large weight" in the basket
- Says yuan is "referenced" against the basket
- Not pegged to it
- Hence, the currency should not be expected to move in line with the index
Via Reuters
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Note - the daily yuan 'fix' is around 0115GMT, when we also get news of the daily open market operations (injecting, draining or doing nothing, funds into the money market). yesterday we saw a 300 point (yes, 3 big figures) devaluation of the yuan against the USD.
