PBOC Governor Pan Gongsheng was remarking on the yuan re the Fed rate cut.
- Fed rate cut eased external pressure on the yuan exchange rate
- yuan has a relatively solid, stable foundation
It was only a few weeks ago that the PBOC was terrified of excessive weakening of the yuan. The Bank managed the currency for many, many months while the USD was soaring to prevent yuan from dropping too fast and triggering capital outflow.
All credit to the Bank, they did a fine job given their aims.
This article was written by Eamonn Sheridan at www.forexlive.com. Source