China's central bank is said to have met with yuan fixing banks yesterday
- Urges banks to avoid 'herd behaviour'
- And to also make efforts to prevent 'momentum-chasing moves'
This according to Bloomberg, citing people familiar with the matter. The report says that a PBOC official made the comments in a meeting yesterday with 14 banks that provide quotations for the yuan's daily reference rates.
Further comments from the official were believed to be:
- China will keep yuan flexible and allow currency to move both ways
- Any pressures on the yuan will need to be released in a timely mannter
- China will not work against market forces
- PBOC confident and has plenty of tools to stabilise the market
USD/CNH continues to fall and touches a session low after the report above is released:
