PBOC-backed paper: Recent yuan fluctuations are normal

  • Expectations on the yuan exchange rate are stable

There is some growing angst about the decline in the yuan, particularly as a reason not to ease further. One reason to float this paper might be to tell Chinese people not to worry about the currency. If that’s the case, it would be dovish and stimulative. The calls for more China economic support are growing.

This article was written by Adam Button at www.forexlive.com. Source