Sumary of China’s yuan firms, market expects Beijing to rein in strength:
- Prior to market opening, the People’s Bank of China (PBOC) set the midpoint rate at 6.3980 per dollar, 77 pips weaker than the previous fix of 6.3903. In the spot market, the onshore yuan opened at 6.3922 per dollar and was changing hands at 6.3882 at midday, 39 Story continues below This has not loaded yet, but your article continues below.
- Article content manipulator, the PBOC’s net purchase of FX is just zero since the beginning of 2020 despite massive inflows of FX via the current and financial accounts,” Lu Ting, chief China economist at Nomura said in a note.
- He also said China should seek to guarantee people’s livelihood, the development of market entities, and the country’s food and energy security.
- Article content By midday, the broad dollar index stood at 96.733, while the offshore yuan was trading at 6.3917 per dollar.
- OFFSHORE CNH MARKET Instrument Current Difference from onshore Offshore spot yuan 6.3917 -0.05% * Offshore 6.5601 -2.47% non-deliverable forwards ** *Premium for offshore spot over onshore **Figure reflects difference from PBOC’s official midpoint, since non-deliverable forwards are settled against the midpoint.
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