China’s central bank has taken multiple steps to support the yuan this year!
The yuan weakened past 7.2 to the dollar, complicating Chinese policy makers’ efforts to boost the country’s economy with lower interest rates
China’s central bank warned market participants against speculating on the yuan, after the currency slid to its weakest level against the dollar in more than 14 years and hit a record low in international trading.
China’s Yuan Hits Record Low Against Dollar!
— The_Journalbiz (@the_journalbiz) September 28, 2022
The offshore yuan depreciated to more than 7.2 to the dollar!
For the first time since a separate system for trading the currency outside mainland China was launched more than a decade ago.
The yuan also broke 7.2 against the dollar in China’s more tightly controlled onshore market, going beyond that mark for the first time since February 2008 and capping a 12% fall in the currency against the greenback in the year to date.
On Wednesday, the People’s Bank of China released a statement that said it had held a meeting the previous day to analyze the recent market movements.
“The foreign exchange market is of great importance, and maintaining its stability is the top priority,” it stated. It said investors shouldn’t be betting on the unilateral appreciation or depreciation of the yuan, and called on banks to curb such activity.
Both the offshore and onshore yuan pared some of their losses following the central bank’s comments.
The offshore yuan recently traded at 7.2419 per dollar, after hitting a low of 7.2675, according to FactSet.