PBOC deputy tells Yuan will be broadly stable
There’s no basis for ongoing depreciation of China's major currency, and the exchange rate is going to remain broadly stable. That’s what the financial world learnt from the deputy governor of China's central bank on Tuesday.
The comments by Yi Gang kicked in the official paper of China's ruling Communist Party, the People's Dailcame after a two-week drop in the Yuan, which shaved off more than 1.5% of its value against the greenback.
On Monday, the Chinese currency reached a fresh six year minimum against the greenback, drawing large greenback sales by state banks, which some investors suspected was being executed on behalf of the major bank to back up the currency.
The Yuan’s dip has been exacerbated by global uncertainties, including the UK’s exit from the EU, which battered most emerging currencies, though recent weakness has revived memories of China's shocking devaluation last August as well as another rapid depreciation early this year.