This from China's Securities Times, a front page commentary (h/t to MNI for the article):
- The unexpected rise in forex reserves in June may indicate that the Chinese central bank has stopped regular intervention in the foreign exchange market
- This also indicates that market sentiment was stable despite recent fluctuations of the yuan
My rant? The yuan (CNY) is a managed currency. Every day the PBOC sets a mid-point and allows fluctuation in a plus or minus 2% band. No more than that. Setting a mid-point is an intervention in itself. And they do it every day.
I know what the Securities Times is getting at. But they're doing it wrong.
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Adam posted on Chinese FX reserves data that came out overnight.