The PBOC has been setting the yuan reference rate with a strong bias in the past month or so, but the spot rate has generally kept trading at a weaker level than the fix, suggesting that onshore market demand for dollars remained strong and pointing to lingering yuan depreciation pressure. Photo: Reuters
The PBOC has been setting the yuan reference rate with a strong bias in the past month or so, but the spot rate has generally kept trading at a weaker level than the fix, suggesting that onshore market demand for dollars remained strong and pointing to lingering yuan depreciation pressure. Photo: Reuters
Yuan

PBOC adjusts formula for yuan fixing, sparking rise in currency

Move aimed at warding off potential capital outflows from impending rise in US interest rates

The PBOC has been setting the yuan reference rate with a strong bias in the past month or so, but the spot rate has generally kept trading at a weaker level than the fix, suggesting that onshore market demand for dollars remained strong and pointing to lingering yuan depreciation pressure. Photo: Reuters
The PBOC has been setting the yuan reference rate with a strong bias in the past month or so, but the spot rate has generally kept trading at a weaker level than the fix, suggesting that onshore market demand for dollars remained strong and pointing to lingering yuan depreciation pressure. Photo: Reuters
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