PBoC promised stronger damping to support CNY, and that's what are seeing


Justin had the news from the People’s Bank of China here on Monday:

The PBOC governor Pan Gongsheng emphasized that the Bank will not let the yuan plummet without a fight:

  • Will step up countercyclical adjustment
  • Should resolutely guard against the risk of exchange rate overshoot

Today is an example of the Bank pushing back on yuan weakness, with the reference rate set 300+ points stronger for the CNY than was expected (in the Reuters model).

Offshore yuan has jumped (lower USD/CNH as shown in the chart below):

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