Is the PBOC using stronger yuan fixings to prevent panic from spreading?

Author: Eamonn Sheridan | Category: Central Banks

This from a Bloomberg piece on the CNY

  • Chinese stocks and bonds in retreat
  • Anxiety over Beijing's deleveraging campaign
  • But officials have been guiding the yuan higher against the dollar
  • The reference rate used by the People's Bank of China to manage the yuan has come in stronger than the forecasts of four banks who regularly track the measure on 24 of the past 31 trading days
  • "The PBOC is using the stronger fixings to prevent panic sentiment from spreading to the currency market," said Xia Le, chief economist at Banco Bilbao Vizcaya Argentaria SA in in Hong Kong, referring to the reference rate that's updated each day.
The article is worth reading if you are interested in the goings on in China. it doesn't mention political pressure from the US for a higher yuan though, which seems a curious omission to me at least.