Justin had the news from the People's Bank of China here on Monday:
The PBOC governor Pan Gongsheng emphasized that the Bank will not let the yuan plummet without a fight:
- Will step up countercyclical adjustment
- Should resolutely guard against the risk of exchange rate overshoot
Today is an example of the Bank pushing back on yuan weakness, with the reference rate set 300+ points stronger for the CNY than was expected (in the Reuters model).
Offshore yuan has jumped (lower USD/CNH as shown in the chart below):
