FT says “China props up renminbi ahead of leadership summit in March”

The Financial Times is gated, but the central point of this article is that Chinese authorities are propping up the CNY:

• as Beijing seeks to bolster confidence in the country’s currency and economy ahead of a key leadership summit.

I’d add that China, via the PBOC, has been doing this for many, many, months now. Each day we get the reference rate setting from the PBoC and each day its hundreds of points from where market rates are for USD/CNY. In the direction of support for the CNY (renminbi is another name for the currency). Add in a fear of cutting rates:

• Why the People’s Bank of China can’t ease the economic headwinds away

Although the Bank finally did cave in a little last week:

• PBOC Rate CUT ___ (LPR): 1-year 3.45% (prior 3.45%) 5-year 3.95% (prior 4.20%)

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As for the key leadership summit, this is coming “Two Sessions” meetings:

• the annual meetings of the National People’s Congress (NPC) and the National People’s Political Consultative Conference (NPPCC)
• will kick off on March 4 and 5, respectively

More at Asia Times on this, including:

• Some Chinese economists expect the gross domestic product (GDP) target at around 5% again for 2024

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