Bloomberg picking up a few items in the China press today:
This from China Eco Daily:
- People's Bank of China to 'firmly' implement prudent monetary policy
I think we can read 'firmly' prudent as a sign of tighter policy?
This from Financial News:
- China should widen the yuan trading bank 'properly'
- China should achieve 'clean floating' yuan exchange rate
- Adviser calls on reducing intervention in the forex market
- China deleveraging aims to support the real economy
USD/CNY is a 'dirty' float to the extent that the People's Bank of China announces a mid-rate each day and only allows a plus or minus 2% fluctuation each day (for other currencies too, not just against the USD; though the width of the band varies for some other currencies). moves greater than +/- 2% are met with intervention by the bank. ps. 'offshore' yuan trading, USD/CNH, for example, is allowed to fluctuate freely (to the extent the PBOC does not unofficially intervene ... perhaps by jacking up overnight rates etc.)
