PBOC-backed news said ample tools to stabilize FX market even if yuan enters a panic slide

Financial News is a PBOC media outlet in China. It published a commentary piece saying China has ample tools to stabilize the foreign-exchange market even if the yuan enters a “panic” slide. Such as:

  • foreign-exchange risk-reserves ratio
  • banks’ FX deposit-reserve ratio
  • the countercyclical factor used in determining the PBOC’s daily reference rate for the yuan
  • and the adjustment of macroprudential factors for cross-border financing

The piece in the media outlet comes after the People’s Bank of China set the reference rate much stronger than expected again yesterday but the yuan shrugged that off and dropped afterwards anyway.

Yuan update, this is the offshore yuan:

This article was written by Eamonn Sheridan at www.forexlive.com. Source