China’s FX regulator says Will prevent yuan exchange rate from overshooting,

The State Administration of Foreign Exchange (SAFE) in the regulator:

  • Will strengthen countercyclical supervision, improve the solvency,
    deposit reserve mechanisms
  • Studying broadening
    the scope of foreign shareholders in non-bank institutions
  • China’s forex market
    operation is resilient
  • China’s forex market
    faces increasing adjustment
  • China’s forex market
    has condition for steady operation in future
  • China’s forex market
    remains reasonable and orderly
  • Will pay high
    attention to changes in external environment
  • Will prevent yuan
    exchange rate from overshooting, and prevent risks from abnormal
    cross-border capital flow

This is the offshore yuan, CNH, which trades without the +/- 2% restriction China imposes on the onshore yuan, CNY. The two never get too far out of line (depends how you define too far out of line course):

This article was written by Eamonn Sheridan at Source