Comments by the head of PBOC's research institute
- Recent yuan weakness is not a result of PBOC guidance
- It is a result of changes in market expectations as external uncertainties rise
- China is committed to multilateralism, globalisation, free trade
As I said earlier, it's hard not to believe that the recent weakness has nothing to do with the PBOC and as I've mentioned back here it's easy for them to brush aside any intentional devaluing to being part of the "yuan fixing mechanism".
With the market having no hints of what that may be, they basically have a free pass to fire a warning shot as we've seen over the past two weeks and get away with it.
