SHANGHAI: China’s central bank has neutralized the counter-cyclical factor in its daily yuan midpoint fixing, two sources with direct knowledge of the matter told Reuters.
The move comes as the Chinese currency has strengthened against the dollar over recent months amid accelerating foreign capital inflows and improving economic fundamentals. The onshore yuan has gained more than 6% against the dollar since late May.
The People’s Bank of China (PBOC) has asked some of the 14 midpoint contributing banks to submit and adjust their models to better reflect flexibility in the exchange rate and let the currency become more market-driven, according to one of the sources.
Disclaimer: This post has been auto-published from an agency feed without any modifications to the text and has not been reviewed by an editor
Read all the Latest News and Breaking News here
Comments
0 comment