China’s yuan: financial regulators vow to stem speculation, not hesitate after currency slid to 16-year low against US dollar
- Financial regulators on Monday vowed to take action after China’s yuan fell to a 16-year low of 7.351 against the US dollar on Friday
- Bank of America survey shows global fund managers believe the yuan will weaken further in the next three months due to a lack of stimulus
China’s financial regulators on Monday vowed to stem one-sided speculative bets on its currency after the yuan weakened to its lowest level in more than a decade against the US dollar amid lingering concerns over the recovery of the world’s largest-second economy.
“We will not hesitate on taking actions when necessary to firmly correct the one-sided and pro-cyclical market moves, to resolutely address the actions which disturb market order, and to unswervingly avoid the overshooting risks in the exchange rate,” the People’s Bank of China in a statement after a meeting by the nation’s foreign exchange self-regulatory body.
“Financial regulators have the ability, confidence and conditions to keep the yuan’s exchange rate basically stable.”
The yuan has continued to weaken against the US dollar in recent weeks, falling to a 16-year low of 7.351 on Friday.
Despite the depreciation of the yuan against the US dollar, it has remained basically stable against a basket of currencies, the statement added.