The People's Bank of China sets the reference rate for the Chinese yuan each business day
- The PBOC is not an independent central bank
- The PBOC is a branch of the governing party in China
Despite what the talking heads might say, the devaluation is a policy move.
When will we get a tweet from US President Trump attacking the devaluation trend (again)? Something to watch out for.
USD/CNH (CNH is the offshore yuan) surging on the session here (i.e. yuan weaker):
You might have a good memory, if so you'll recall this :
- US Treasury Secretary Mnuchin said Investors should not be concerned about a currency war
And the retweet of that post with added translation:
ForexLive, 1 : Mnuchin, nil
